Griffin's Penthouse Faces Million-Dollar Annual Bill
Ken Griffin's $238 million apartment at 220 Central Park South would owe roughly $1 million annually under New York City's new non-primary residence surcharge, based on the Department of Finance's $15.5 million valuation rather than the hedge fund billionaire's record 2019 purchase price.
The 24,000-square-foot penthouse illustrates how the surcharge works in practice. DOF values the unit at $15.5 million for tax purposes, triggering the top 6.5% rate because it exceeds the $5 million threshold for condominiums. Combined with Griffin's existing $858,332 property tax bill, his total annual tax burden reaches approximately $1.87 million.
The calculation reveals the surcharge's reliance on DOF market values, not sale prices. Griffin paid $238 million in 2019, but the city assesses the property at roughly 6.5% of that amount for tax purposes.
How DOF Valuations Drive Surcharge Bills
The surcharge applies to the DOF's market value determination, creating a disconnect between what owners paid and what they owe. For condominiums and cooperatives, the rates are 4% on market values from $1 million to $3 million, 5.25% from $3 million to $5 million, and 6.5% above $5 million.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 24,000 units citywide would owe the surcharge if they qualify as non-primary residences. Manhattan accounts for 20,065 of those units, with condominiums and cooperatives representing 16,709 properties above the $1 million threshold.
The surcharge is flat, not marginal. Once a property's DOF market value crosses $5 million, the 6.5% rate applies to the full valuation, not just the excess above the threshold.
Manhattan's Luxury Buildings Bear Heaviest Burden
ZIP code 10019, which includes 220 Central Park South, contains 975 condominiums and cooperatives above the $1 million threshold. These units would face an average surcharge of $86,862 if they qualify as non-primary residences.
The building itself demonstrates the surcharge's concentration in Manhattan's luxury market. While specific building-level totals vary by DOF valuations and primary residence exemptions, the broader pattern shows Manhattan condominiums and cooperatives facing median surcharges of $53,665.
Only 197 condominium and cooperative units citywide fall into the top 6.5% bracket, but they face average surcharges of $478,899. These properties cluster in Manhattan's most expensive neighborhoods.
Exemptions and Appeals Shape Final Bills
Property owners have until October 13, 2026, to apply for primary residence exemptions. DOF extended this deadline twice from the original August dates, reflecting the complexity of determining which properties qualify.
The exemption covers properties serving as the primary residence of the owner or immediate family members, including spouses, children, siblings, parents, and grandparents. A 12-month arm's-length rental to a natural person also qualifies for exemption.
Owners can appeal DOF's initial determination within 30 days of receiving notice. The first surcharge payments are due January 1, 2027, after DOF completes its review of exemption applications and appeals.
What Owners Should Monitor
The surcharge structure changes in July 2028, when condominiums and cooperatives will be revalued using comparable sales data toward the lower rate schedule currently applied to houses. This Phase 2 transition could reduce bills for some luxury properties.
DOF mailed initial non-primary residence notices by August 30, 2026. Owners who received these notices should verify their property's DOF market value and consider whether they qualify for exemptions before the October 13 deadline.
The surcharge runs through June 30, 2031, generating an estimated $500 million annually for the city. Property owners can check their potential exposure using DOF market values, which differ from assessed values used for regular property taxes.
Frequently asked questions
Is my apartment subject to NYC's new non-primary residence surcharge?
Your apartment is subject to the surcharge if its DOF market value exceeds $1 million and it doesn't qualify as your primary residence or that of an immediate family member. You can apply for a primary residence exemption until October 13, 2026, which covers properties serving as the primary residence of the owner or immediate family members including spouses, children, siblings, parents, and grandparents.
How much is the tax on luxury condominiums under the new surcharge?
The surcharge rates for condominiums are 4% on DOF market values from $1 million to $3 million, 5.25% from $3 million to $5 million, and 6.5% above $5 million. The surcharge is flat, not marginal, so once a property's DOF market value crosses $5 million, the 6.5% rate applies to the full valuation.
Does the surcharge change in 2028 for condominiums?
Yes, the surcharge structure changes in July 2028 when condominiums and cooperatives will be revalued using comparable sales data toward the lower rate schedule currently applied to houses. This Phase 2 transition could reduce bills for some luxury properties.