Different Tax Bases, Same Bill
New York's regular property tax and the new pied-à-terre surcharge are calculated from different values and appear as separate line items on the same property tax statement.
The regular property tax uses your property's assessed value—typically 45% of market value for condos and co-ops. The surcharge uses DOF's full market value estimate for qualifying non-primary residences above statutory thresholds.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 24,000 units citywide would owe the surcharge if they are non-primary residences. Manhattan accounts for roughly 20,000 of those units, with condos and co-ops representing about 16,700 units that would face an average surcharge of $68,559.
Rate Structure and Thresholds
Condos and co-ops face a 4% surcharge on market values from $1 million to $3 million, 5.25% from $3 million to $5 million, and 6.5% above $5 million. Houses pay 0.8% on $5 million to $15 million, 1.05% on $15 million to $25 million, and 1.3% above $25 million.
The surcharge applies to the entire market value once the threshold is met—not just the amount above it. A $1.2 million condo valued as a non-primary residence would owe $48,000 annually (4% of the full $1.2 million), not $8,000 (4% of the $200,000 excess).
Consider a Manhattan co-op owner whose unit carries a $2.8 million DOF market value. If the unit serves as a second home, the annual surcharge would be $112,000—separate from and in addition to the regular property tax calculated on the unit's assessed value.
Exemptions Don't Cross Over
Property tax exemptions and abatements that reduce your regular tax bill do not automatically reduce the pied-à-terre surcharge. The surcharge operates under separate statutory rules tied to primary residence status, not assessed value benefits.
STAR and other property tax reductions affect the assessed-value calculation but leave the market-value surcharge untouched. Owners seeking to avoid the surcharge must establish primary residence status or qualify for the surcharge's own exemptions by the October 13, 2026 deadline.
DOF determines primary residence status as of the January 5 taxable status date preceding each fiscal year. The first surcharge payments are due with the January 2027 property tax installment.
Frequently asked questions
Is my apartment subject to the pied-à-terre surcharge if it's worth $1.2 million?
If your condo or co-op has a DOF market value of $1.2 million and serves as a non-primary residence, you would owe the full 4% surcharge of $48,000 annually. The surcharge applies to the entire market value once the $1 million threshold is met, not just the amount above the threshold.
How much is the pied-à-terre tax on a $2.8 million co-op?
A $2.8 million co-op used as a second home would face an annual surcharge of $112,000 (4% of the full market value). This surcharge is separate from and in addition to the regular property tax calculated on the unit's assessed value.
Does my STAR exemption reduce the pied-à-terre surcharge?
No, property tax exemptions and abatements like STAR that reduce your regular tax bill do not automatically reduce the pied-à-terre surcharge. The surcharge operates under separate statutory rules tied to primary residence status, not assessed value benefits.