Two Different Challenges, Two Different Agencies
New York City's pied-à-terre tax splits property owner challenges into two distinct procedures with separate deadlines and review agencies.
Owners who believe their property qualifies for an exemption file directly with the Department of Finance by October 13, 2026. Those challenging DOF's market value determination file Form TC107 with the independent NYC Tax Commission by March 1, 2027 for condos and co-ops, or March 15, 2027 for houses.
The distinction matters because the surcharge applies to market values above $1 million for condos and co-ops, and above $5 million for houses. 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.
What Each Challenge Actually Contests
A DOF exemption application challenges whether the property is subject to the surcharge at all—typically by proving it serves as a primary residence for the owner, an immediate family member, or a qualifying tenant.
A Tax Commission appeal challenges DOF's market value calculation. The surcharge uses market value, not assessed value, as its base. For a $1.5 million condo, the 4% surcharge would be $60,000 annually based on the full market value.
An owner can file both challenges simultaneously. The Tax Commission materials specify that a single TC107 form can contest both the residency determination and the market value.
Evidence Requirements Differ by Challenge Type
DOF exemption applications require documentation showing the property serves as a qualifying primary residence. This includes evidence for the owner, immediate family members, or tenants under 12-month arm's-length leases.
Market value challenges focus on property-specific characteristics and comparable sales data. The Tax Commission reviews whether DOF's valuation methodology and conclusions are correct.
The two types of evidence rarely overlap. Proof of occupancy does not establish that DOF's market value is wrong, just as comparable sales data does not prove primary residence status.
Deadline Extensions and Current Status
DOF extended the exemption application deadline to October 13, 2026, for all residential properties that received surcharge notices. The original deadline was in late August.
Tax Commission deadlines remain fixed: March 1, 2027 for Class 2 properties (condos and co-ops) and March 15, 2027 for Class 1 properties (houses) for the 2026/27 and 2027/28 tax years.
DOF mailed initial notices by August 30, 2026. Being listed on DOF's supplemental market value roll does not itself establish surcharge liability—it identifies properties that may be subject to the tax.
What Happens Next
The surcharge takes effect July 1, 2026 and runs through June 30, 2031. Starting July 1, 2028, all covered properties will use a $5 million threshold with different rate structures.
Manhattan leads exposure with roughly 17,000 condos and co-ops above the $1 million threshold, according to Conquest's analysis. The average potential surcharge for these units is $68,559 annually.
Property owners can check their DOF market value and potential surcharge exposure using our free calculator before deciding which challenge path to pursue.
Frequently asked questions
Is my apartment subject to the pied-à-terre tax if it's on DOF's supplemental market value roll?
Being listed on DOF's supplemental market value roll does not itself establish surcharge liability—it identifies properties that may be subject to the tax. The surcharge applies to market values above $1 million for condos and co-ops, and above $5 million for houses, but only if they are non-primary residences.
How much is the pied-à-terre tax on a $1.5 million condo?
For a $1.5 million condo, the 4% surcharge would be $60,000 annually based on the full market value. The surcharge uses market value, not assessed value, as its base.
What's the deadline to challenge my DOF market value for the pied-à-terre tax?
Property owners must file Form TC107 with the NYC Tax Commission by March 1, 2027 for condos and co-ops, or March 15, 2027 for houses to challenge DOF's market value determination. These Tax Commission deadlines remain fixed and are separate from DOF exemption application deadlines.