The Share-Percentage Formula
New York's pied-à-terre tax calculates co-op surcharges by multiplying each building's DOF market value by individual unit share percentages, a method that can produce vastly different bills for apartments on the same floor.
Consider a Tribeca co-op owner whose 0.85% share of a building valued at $180 million generates an imputed unit value of $1.53 million. Under the surcharge schedule effective July 1, 2026, that places the unit in the 4% bracket, creating an annual bill of $61,200 if the apartment qualifies as a non-primary residence.
The same building's penthouse owner, holding a 2.1% share, faces an imputed value of $3.78 million and the 5.25% rate. Their surcharge: $198,450.
DOF's supplemental market-value roll covers approximately 36,677 co-op units across buildings where at least one unit may be subject to the surcharge, according to DOF assessment-roll materials.
Reading Your DOF Number
The figure DOF lists for each co-op unit represents the apartment's imputed market value, not the annual surcharge amount or the unit's assessed value for regular property taxes.
This imputed value determines which surcharge bracket applies: 4% for values between $1 million and $3 million, 5.25% for $3 million to $5 million, and 6.5% for amounts above $5 million during the initial phase through June 30, 2028.
The surcharge applies as a flat rate to the full imputed value once it crosses the $1 million threshold. A unit valued at $1.1 million pays 4% on the entire amount, not just the $100,000 above the threshold.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows 16,709 Manhattan condo and co-op units would owe the surcharge if they qualify as non-primary residences, with an average surcharge of $68,559.
The Exemption Window
Co-op owners who received DOF notices about potential surcharge liability have until October 6, 2026 to file exemption applications, extended from original August dates by Mayor Mamdani and DOF Commissioner Lee.
The primary-residence exemption covers units used as the main home by the owner or immediate family members, including spouses, children, siblings, parents, grandparents, and grandchildren. A 12-month arm's-length tenant to an unrelated natural person also qualifies.
Non-primary status gets determined as of the January 5 taxable status date preceding each fiscal year, regardless of how much time the owner actually spent in the unit during the year.
Owners have 30 days from their notice transmission date to appeal DOF's initial determination through the agency's electronic portal.
What Comes Next
The surcharge schedule shifts in Phase 2 beginning July 1, 2028, when co-op and condo valuations move toward comparable sales methodology and the rate structure used for houses.
First surcharge payments come due January 1, 2027, with the tax scheduled to sunset June 30, 2031 unless the Legislature extends it.
The Comptroller projects roughly $500 million in annual revenue citywide from the surcharge across all property types.
Check your co-op unit's DOF market value and potential surcharge with Conquest's free calculator at the link below.
Frequently asked questions
How much is the pied-à-terre tax on my co-op apartment?
The surcharge is calculated by applying a percentage rate to your unit's full DOF imputed market value: 4% for values between $1 million and $3 million, 5.25% for $3 million to $5 million, and 6.5% for amounts above $5 million through June 30, 2028. Your unit's imputed value is determined by multiplying your share percentage by your building's total DOF market value.
Is my co-op apartment subject to the pied-à-terre tax if I live there part-time?
Your apartment is subject to the surcharge if it qualifies as a non-primary residence and has an imputed market value above $1 million. The primary-residence exemption covers units used as the main home by the owner or immediate family members, with non-primary status determined as of the January 5 taxable status date regardless of how much time you actually spent in the unit during the year.
When do I need to file for the pied-à-terre tax exemption?
Co-op owners who received DOF notices about potential surcharge liability have until October 6, 2026 to file exemption applications. You also have 30 days from your notice transmission date to appeal DOF's initial determination through the agency's electronic portal.