Manhattan Buildings Dominate Surcharge Exposure
Manhattan condominiums and cooperatives account for roughly 16,700 units that would owe New York City's pied-à-terre surcharge if they qualify as non-primary residences, with an average surcharge of $68,559 per unit, according to Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll.
The surcharge, signed May 28, 2026 and effective July 1, 2026, applies to non-primary residences valued above $1 million for condos and co-ops. Manhattan houses add another 3,356 units with an average surcharge of $105,610.
Citywide, roughly 24,000 units fall above the threshold amounts. Most are primary residences and owe nothing, making these exposure figures rather than revenue projections.
Zip Code Concentrations Show Clear Patterns
Midtown West's 10019 zip code leads with 975 condo and co-op units exposed to the surcharge, averaging $86,862 per unit. SoHo's 10012 follows closely with 932 units at $86,469 average.
Tribeca's 10013 contains the largest single concentration: 1,751 units with a $74,077 average surcharge. The West Village (10014) and East Village (10003) each contribute over 500 units.
These five zip codes alone account for roughly 4,750 units, or about 28% of the citywide total above the $1 million threshold.
Rate Structure Creates Sharp Jumps
The surcharge applies flat rates to full market value once properties clear the threshold. Units valued $1 million to $3 million face a 4% rate, while those from $3 million to $5 million pay 5.25%.
Properties above $5 million trigger the 6.5% top rate. Among condos and co-ops, 16,452 units fall in the 4% bracket with an average surcharge of $58,048. Just 197 units reach the top bracket, averaging $478,899.
The flat-rate structure means a $1.01 million unit pays $40,400 while a $999,000 unit pays nothing.
Filing Deadlines and Payment Schedule
DOF mailed initial surcharge notices by August 30, 2026, with exemption applications due October 13, 2026 after multiple extensions. The deadline applies to owners who received DOF's 'You may be subject to...' notice.
Primary residence exemptions cover the owner, immediate family members, or 12-month arm's-length tenants. Entity ownership requires majority-interest look-through to natural persons.
The surcharge follows NYC's standard property tax billing schedule rather than a separate payment date. Appeals of DOF's initial determination must be filed within 30 days of notice transmission.
Phase Two Brings Broader Exposure
Starting July 1, 2028, condos and co-ops will be revalued using comparable sales methodology toward the house schedule: 0.8% for $5-15 million, 1.05% for $15-25 million, and 1.3% above $25 million.
Conquest's analysis shows 4,400 condo and co-op units currently valued within $100,000 of the $1 million threshold. These properties could face surcharge liability if Phase Two revaluations push them above the line.
The surcharge sunsets June 30, 2031, with the Comptroller projecting roughly $500 million in annual revenue across all phases.
Frequently asked questions
Is my apartment subject to NYC's pied-à-terre tax if it's worth $1 million?
The surcharge applies to non-primary residences valued above $1 million for condos and co-ops, meaning a $1.01 million unit pays $40,400 while a $999,000 unit pays nothing. You must also not qualify for the primary residence exemption, which covers the owner, immediate family members, or 12-month arm's-length tenants.
How much is the pied-à-terre tax on a $2 million condo in Manhattan?
Units valued $1 million to $3 million face a 4% rate applied to the full market value, so a $2 million condo would pay $80,000 if it qualifies as a non-primary residence. The flat-rate structure means the surcharge applies to the entire property value once it clears the $1 million threshold.
Does the NYC pied-à-terre tax change in 2028?
Starting July 1, 2028, condos and co-ops will be revalued using comparable sales methodology with different rate brackets: 0.8% for $5-15 million, 1.05% for $15-25 million, and 1.3% above $25 million. This Phase Two could push properties currently valued within $100,000 of the $1 million threshold above the line and into surcharge liability.