Can my trust-owned apartment qualify for the pied-à-terre tax exemption?
Yes, but only if the primary-residence beneficial owner or owners are the trust's sole beneficiary or beneficiaries, according to DOF's final rules adopted July 14, 2026.
The surcharge applies to non-primary NYC residences valued above $1 million for condos and co-ops, with rates of 4% on market value from $1-3 million, 5.25% from $3-5 million, and 6.5% above $5 million. 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 they are non-primary residences.
DOF requires two documents to establish trust eligibility: a copy of the trust agreement stating the individual is the sole beneficiary, and an affidavit from a trustee confirming that status.
Does it matter if my trust is revocable or irrevocable?
No—DOF's rule focuses on beneficial ownership structure, not revocability.
A revocable trust is not automatically exempt solely because it is revocable. An irrevocable trust is not automatically disqualified solely because it is irrevocable. The operative test is whether the applicable primary-residence beneficial owner or owners are the sole beneficiary or beneficiaries and whether the required residency conditions are met.
This means a revocable trust with additional beneficiaries could fail to qualify, while an irrevocable trust with the owner as sole beneficiary could succeed.
What happens if my trust has multiple beneficiaries?
Multiple beneficiaries can qualify if they are all primary-residence beneficial owners, but additional unrelated beneficiaries create problems.
DOF's rule allows 'individuals' to be the sole beneficiaries when more than one person qualifies as the primary-residence beneficial owner. However, a trust with additional beneficiaries, contingent beneficiaries, remainder beneficiaries, or beneficiaries who do not satisfy the primary-residence requirements may present qualification issues that DOF's materials do not resolve categorically.
The available DOF language does not expressly answer whether particular contingent, remainder, charitable, or successor-beneficiary provisions defeat 'sole beneficiary' status.
Who files the exemption application for a trust-owned property?
The trustee files the exemption application with DOF using the standard process and supporting documentation.
DOF's final rule specifically identifies a trustee affidavit as evidence of sole-beneficiary status. The practical documentation package DOF requires is the trust agreement showing the sole beneficiary or sole beneficiaries, plus a trustee affidavit confirming that status.
The rule does not create a separate tax liability or separate surcharge return solely because the trustee signs the affidavit.
When is the exemption application deadline?
October 13, 2026—DOF extended it again on October 6, 2026 from the previous October 6 deadline.
The extension applies to everyone who received a DOF 'You may be subject to...' notice. DOF mailed these notices on July 22, 2026 to owners of NYC residential properties for which DOF records did not establish primary-residence status.
The deadline moved four times: originally August 21, 2026 for homes and condos and August 24, 2026 for co-ops, then extended to September 18, 2026, then October 6, 2026, and finally October 13, 2026.
What dollar amounts are we talking about for trust-owned properties?
Consider a $2 million Tribeca condo held in a revocable trust where the owner is the sole beneficiary and uses it as a primary residence. Without the exemption, the annual surcharge would be $80,000 (4% of the $2 million market value).
Manhattan condos and co-ops above the threshold would owe an average surcharge of $68,559 if they are non-primary residences, according to Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll. The median surcharge is $53,665.
The surcharge is calculated on DOF's market value—the 'Market Value' line on the Notice of Property Value—not the lower assessed value used for regular property taxes.
What should trust owners watch for next?
Court challenges are affecting the rollout, with litigation challenging both implementation and constitutional underpinnings of the surcharge. The deadline extensions were issued amid that litigation.
The NYC Comptroller reported on October 6, 2026 that the earliest billing could likely occur in November 2026, though no exact statutory first-payment due date has been established.
Complex trust provisions involving contingent or remainder beneficiaries remain unsettled under DOF's current guidance and should be resolved with tax counsel before the October 13 deadline.
Frequently asked questions
Is my trust-owned apartment subject to the pied-à-terre tax?
Your trust-owned apartment can qualify for exemption from the pied-à-terre tax, but only if the primary-residence beneficial owner or owners are the trust's sole beneficiary or beneficiaries. The surcharge applies to non-primary NYC residences valued above $1 million for condos and co-ops, with rates of 4% on market value from $1-3 million, 5.25% from $3-5 million, and 6.5% above $5 million.
How much is the pied-à-terre tax on a $2 million trust-owned condo?
A $2 million trust-owned condo would face an annual surcharge of $80,000 (4% of the $2 million market value) if it doesn't qualify for the primary residence exemption. Manhattan condos and co-ops above the threshold would owe an average surcharge of $68,559 if they are non-primary residences, with a median surcharge of $53,665.
Does it matter if my trust is revocable or irrevocable for the pied-à-terre tax exemption?
No, DOF's rule focuses on beneficial ownership structure, not whether the trust is revocable or irrevocable. A revocable trust is not automatically exempt solely because it is revocable, and an irrevocable trust is not automatically disqualified solely because it is irrevocable. The key test is whether the applicable primary-residence beneficial owner or owners are the sole beneficiary or beneficiaries.