The surcharge and the primary-residence exemption
New York City's pied-à-terre surcharge took effect July 1, 2026, and applies to condos, co-ops and one- to three-family homes that do not serve as a primary residence. The surcharge is calculated on the DOF market value—the figure printed on the Notice of Property Value, not assessed value—and the rate is flat once the threshold is crossed. For condos and co-ops in fiscal 2026/27 and 2027/28, the rate is 4 percent on market values between $1 million and $3 million, 5.25 percent from $3 million to $5 million, and 6.5 percent above $5 million.
The law exempts properties used as a primary residence by the owner, an immediate family member (spouse, child, sibling, parent, grandparent or grandchild), or a tenant under a 12-month arm's-length lease. DOF was required to transmit initial determinations by August 30, 2026, and extended the exemption application deadline twice—first to September 18, then to October 6, and finally to October 13, 2026, according to an announcement by Mayor Mamdani and DOF Commissioner Lee on October 6. That October 13 date supersedes the earlier August 21, August 24, September 18 and October 6 deadlines and is the operative filing cutoff for owners who received a 'You may be subject to...' notice.
What DOF accepts as proof
DOF and the NYC Tax Commission identify several categories of documentary evidence for the primary-residence determination. Federal or New York State income-tax returns showing the property as the permanent home address are expressly listed. Proof that the property received the STAR exemption or STAR credit in the prior year is also accepted. Other tax credits or exemptions tied to primary-residence use qualify as well.
The Tax Commission's current guidance does not independently list voter registration or a driver's license as standalone proof, so those documents should be submitted only as supplemental evidence unless DOF's application instructions specifically name them. A practical submission should identify the property and tax year, explain that it was the primary residence as of the relevant taxable-status date—January 5, 2025 for the fiscal year beginning July 1, 2026—and attach dated records covering that period. Evidence should be consistent across documents; no single document guarantees approval.
Filing after October 13
An owner who missed the October 13 deadline should submit the DOF exemption application or appeal immediately through the channel identified in the notice or current surcharge instructions, attaching the primary-residence evidence. State in the submission that the filing is late and request that DOF accept and review it; the available official materials do not establish a general late-file safe harbor or guarantee that DOF will reopen a missed appeal. Preserve proof of submission, including the confirmation number, upload receipt, date and all documents submitted.
If DOF has already issued a determination or the DOF route is unavailable, the NYC Tax Commission offers a separate appeal path. The Tax Commission may consider the primary-residence issue only when the owner is also challenging the property value, according to its current guidance. For the 2026/27 and 2027/28 tax years, the Tax Commission's stated deadlines are March 1, 2027, for Tax Class Two properties and March 15, 2027, for Tax Class One properties. The appeal must be filed on Form TC107 and must be timely.
If a bill has already arrived
A bill does not by itself establish that the property is correctly subject to the surcharge. DOF states that owners who receive a notice may submit a surcharge exemption application, and that the listing of a property on an assessment roll does not mean the surcharge applies. Do not ignore the bill. Submit the primary-residence correction request and retain proof of filing. Check the bill for payment instructions and any stated protest or appeal deadline, and ask DOF how the pending exemption request affects collection, interest, penalties and payment status. The sources available do not establish that filing an exemption application automatically suspends payment or collection.
The NYC Comptroller reported that the earliest billing was expected to occur in November 2026. The property's primary-residence status is determined as of January 5 of the calendar year preceding the fiscal year in which the surcharge is imposed, so documents should address the owner's actual residence during that legally relevant period, not merely the date the bill was received.
What to watch
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 24,000 condo, co-op and house units citywide with market values above the surcharge thresholds—units that would owe the surcharge if they are non-primary residences. Most are primary residences and owe nothing. In Manhattan alone, 16,709 condo and co-op units and 3,356 houses fall above the threshold. Another 4,400 condo and co-op units citywide sit within $100,000 of the $1 million floor, meaning a modest DOF revaluation could push them into the surcharge zone.
Owners uncertain whether their property is correctly valued or whether DOF has the right primary-residence determination on file can check both figures using Conquest's free DOF market-value and surcharge calculator. The tool pulls the current DOF market value and shows the surcharge that would apply if the property is non-primary, with no registration required.
Frequently asked questions
Is my apartment subject to the NYC pied-à-terre tax if I live there as my primary residence?
No, the law exempts properties used as a primary residence by the owner, an immediate family member (spouse, child, sibling, parent, grandparent or grandchild), or a tenant under a 12-month arm's-length lease. You must submit documentation to DOF proving primary-residence status as of January 5, 2025 for the fiscal year beginning July 1, 2026.
How much is the pied-à-terre tax on a $2 million condo in NYC?
For condos and co-ops in fiscal 2026/27 and 2027/28, the rate is 4 percent on market values between $1 million and $3 million, so a $2 million condo would owe $80,000 annually if it is not a primary residence. The surcharge is calculated on the DOF market value printed on the Notice of Property Value, not assessed value.
Can I still appeal the pied-à-terre tax if I missed the October 13, 2026 deadline?
You should submit the DOF exemption application immediately with primary-residence evidence and state that the filing is late, though the available official materials do not guarantee DOF will accept a late filing. If DOF has already issued a determination, the NYC Tax Commission offers a separate appeal path by March 1, 2027 (Tax Class Two) or March 15, 2027 (Tax Class One), but only when you are also challenging the property value.