The $1 Million Threshold at 635 Park Avenue
New York City's pied-à-terre tax will collect its first payments on January 1, 2027, targeting non-primary residences with DOF market values of $1 million or more. At 635 Park Avenue, a prewar cooperative on the Upper East Side, the exact number of units crossing that threshold remains unclear from available DOF records.
The surcharge applies flat rates to the full DOF market value once a unit clears $1 million: 4% on values from $1 million to under $3 million, 5.25% from $3 million to under $5 million, and 6.5% on $5 million or more. A unit valued at $1.5 million would owe $60,000 annually if used as a second home.
Public real estate sources describe 635 Park Avenue inconsistently, listing either 13 or 16 units total. DOF has not published individual unit values for the building in a form that supports reliable unit-by-unit analysis, according to available official records.
Manhattan Co-op Exposure Patterns
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 17,000 Manhattan condos and co-ops would owe the surcharge if used as non-primary residences. The average surcharge for these units is $68,559, with a median of $53,665.
Most exposed units fall in the lowest bracket. Across the city, 16,452 condo and co-op units carry market values between $1 million and $3 million, facing the 4% rate. Another 722 units fall between $3 million and $5 million at 5.25%, while 197 units exceed $5 million at the top 6.5% rate.
An additional 4,400 units citywide sit within $100,000 of the $1 million threshold. These properties could cross into surcharge territory if DOF raises their market values in future assessments.
Exemption Deadline Passed
The exemption application deadline was October 13, 2026, extended twice from the original August 21 date by Mayor Zohran Kwame Mamdani and DOF Commissioner Richard Lee. Owners who received DOF's 'You may be subject to' notice had until that date to claim primary residence or other statutory exemptions.
Primary residence status is determined as of January 5 preceding each tax year, not by time spent in the unit during the year. Immediate family members including spouses, children, siblings, parents, and grandparents can also qualify a unit for exemption.
Owners can still appeal DOF's primary residence determination to the Tax Commission by March 1, 2027, for Class 2 properties like co-ops, or within 30 days of DOF's final determination notice, whichever comes later.
Frequently asked questions
Is my apartment subject to the NYC pied-à-terre tax if it's worth $1 million?
The pied-à-terre tax applies to non-primary residences with DOF market values of $1 million or more, with first payments due January 1, 2027. If your unit has a DOF market value of $1 million or higher and is not your primary residence, it would be subject to the surcharge.
How much is the tax on a $1.5 million apartment used as a second home?
A unit valued at $1.5 million would owe $60,000 annually if used as a second home. The tax applies flat rates to the full DOF market value: 4% on values from $1 million to under $3 million, 5.25% from $3 million to under $5 million, and 6.5% on $5 million or more.
Can I still appeal if I missed the exemption deadline for primary residence?
Yes, owners can still appeal DOF's primary residence determination to the Tax Commission by March 1, 2027, for Class 2 properties like co-ops, or within 30 days of DOF's final determination notice, whichever comes later. The exemption application deadline of October 13, 2026 has already passed.