What changes in 2028
Beginning July 1, 2028, the Department of Finance may match New York State personal-income-tax returns against property records to identify primary residences, according to the final DOF rules adopted in 2026. That is an identification tool. It does not create a new exemption, phase out the surcharge, or grant relief to owners who could not establish primary residence under the existing criteria.
The surcharge itself remains in force through June 30, 2031. Condominiums and cooperatives valued at $1 million or more continue to face a 4 percent surcharge on the full market value if the unit is not a primary residence. Houses and one-to-three-family properties valued at $5 million or more remain subject to a 0.8 percent surcharge under the same non-primary test.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 24,000 units citywide fall above the applicable thresholds. Most are primary residences and owe nothing. But the units that do owe—because the owner lives elsewhere or rents the property short-term—will not see that liability disappear in 2028 unless the use changes or the owner qualifies under an existing exemption.
Who qualifies for relief now
The statute exempts property that serves as the primary residence of the owner or an immediate family member: spouse, child, sibling, parent, grandparent, or grandchild. It also exempts units leased for at least twelve months to a natural person under an arm's-length arrangement, provided the tenant uses the unit as a primary residence.
Owners who received a DOF notice in summer 2026 had until October 13, 2026, to file an exemption application. DOF extended that deadline twice—first from August 21 and August 24 to September 18, then to October 6, and finally to October 13. The extension applied to all residential homes, condominiums, and cooperative units that received the initial notice.
Owners who missed the October 13 deadline may still appeal a final DOF determination to the New York City Tax Commission by March 1, 2027, for Class 2 properties or March 15, 2027, for Class 1 properties—or within thirty days of the DOF determination notice, whichever is later. That appeal addresses both the primary-residence finding and the market-value figure DOF used to calculate the surcharge.
The arithmetic for one Manhattan owner
A two-bedroom condominium in zip code 10013 carries a DOF market value of $1.43 million, the median for units above the threshold in that neighborhood. The owner lives in Westchester and uses the unit on weekends. Because the condo is not the owner's primary residence and is not leased to a qualifying tenant, the unit falls into the $1 million-to-$3 million bracket.
The surcharge is 4 percent of the full market value: $57,200 per year. That figure is in addition to the ordinary property tax, which runs roughly $1,400 per month for a unit at that valuation. The owner will owe the surcharge every year through fiscal 2031 unless the property becomes a primary residence or the owner enters a twelve-month lease with a natural-person tenant who lives there full-time.
If the owner sells before July 1, 2028, the buyer inherits the same test. If the new owner also keeps the unit as a second home, the surcharge continues. The 2028 rule change does not reset the clock or create a grace period for new buyers.
Where exposure concentrates
Manhattan holds 16,709 condominium and cooperative units above the $1 million threshold, according to Conquest's analysis of the DOF roll. The average surcharge for those units would be $68,559 if none qualified for an exemption; the median is $53,665. Zip code 10013—Tribeca—alone accounts for 1,751 units, the highest count in the city.
Brooklyn shows 649 condos and co-ops above the threshold, with an average exposure of $57,678. Houses in Brooklyn add another 3,311 properties, most valued between $5 million and $15 million and facing the 0.8 percent rate. The Bronx, Queens, and Staten Island together contribute fewer than 150 units to the citywide total.
Roughly 4,400 units sit within $100,000 of the $1 million threshold. A modest upward revision in DOF's market-value assessment could push those units into the surcharge zone, even if the owner has lived in the unit for years and considers it a primary residence. Owners in that band should confirm their exemption status before the first bill arrives in January 2027.
What to watch
The first surcharge bills are expected in late 2026 or early 2027, with payment due January 1, 2027, according to the New York City Comptroller's October 2026 summary. DOF has not published a final billing calendar, but the statute requires collection to follow the ordinary property-tax schedule—quarterly for properties with assessed values above $250,000, semiannually for those below.
The PIT-matching rule that takes effect in fiscal 2028 may make it easier for DOF to identify owners who file New York State returns and claim the property as a primary residence. It will not, however, help an owner who files as a Florida or Connecticut resident and uses the New York unit occasionally. For that owner, the surcharge remains in place through 2031 unless the property is sold or converted to a qualifying use.
Conquest's free DOF market-value checker shows the surcharge figure DOF will use for any address, based on the July 2026 roll. Owners who have not yet confirmed their exemption status or appealed their market value can enter the property address to see the exposure before the first bill closes.
Frequently asked questions
Is my apartment subject to the NYC pied-à-terre tax if I live in Westchester and use it on weekends?
Yes, if your condominium or cooperative is valued at $1 million or more and is not your primary residence, it faces a 4 percent surcharge on the full market value. The surcharge applies every year through fiscal 2031 unless the property becomes a primary residence or you lease it for at least twelve months to a tenant who lives there full-time.
How much is the pied-à-terre tax on a $1.43 million condo in Manhattan?
The surcharge is 4 percent of the full market value, which equals $57,200 per year for a $1.43 million condominium. This amount is in addition to the ordinary property tax and will be owed every year through fiscal 2031 unless the unit qualifies for an exemption.
Does the 2028 rule change eliminate the pied-à-terre tax for second-home owners?
No, the 2028 rule change does not create a new exemption, phase out the surcharge, or grant relief to owners who could not establish primary residence under existing criteria. Beginning July 1, 2028, the Department of Finance may match New York State personal-income-tax returns against property records to identify primary residences, but the surcharge remains in force through June 30, 2031, for units that do not qualify as primary residences.