What the statute fixes
Beginning July 1, 2028, the pied-à-terre surcharge applies to non-primary residences with a phase two market value of at least $5 million, according to NYC Administrative Code Article 30-C. The Phase 2 rate tiers are 0.8% for values between $5 million and $15 million, 1.05% for values above $15 million through $25 million, and 1.3% for values above $25 million. The threshold and rates are statutory; they do not depend on DOF rulemaking.
Phase 2 replaces the Phase 1 structure that runs through June 30, 2028. Under Phase 1, condos and co-ops with DOF market value of at least $1 million are subject to surcharge rates of 4% ($1M–$3M), 5.25% ($3M–$5M), or 6.5% ($5M and above). One-, two-, and three-family homes remain subject to the $5 million threshold and the 0.8–1.3% tiers in both phases.
The Phase 2 calculation is based on phase two market value, a new comparable-sales-based valuation concept for condominiums and cooperatives. The statute directs DOF to value the individual unit without relying on the ordinary property-tax treatment that applies to condominium and cooperative property. DOF has explained that Phase 2 requires an entirely new comparable-sales valuation methodology for individual cooperative and condominium units.
What DOF has not published
As of October 23, 2026, DOF has not published the complete operational methodology for calculating phase two market value for individual condominium and cooperative units. The central practical uncertainty is how DOF will value units around $4 million to $6 million.
The unpublished framework includes the rules for selecting and weighting comparable sales; adjusting for location, size, floor, condition, views, amenities, and renovation; addressing unusual or limited-comparable units; determining the relevant valuation date; treating sales that are not arm's-length; handling co-op sales data and proprietary or incomplete transaction information; converting comparable evidence into a final unit-level Phase 2 value; and determining how DOF will notify owners of the resulting Phase 2 value and permit owners to challenge it.
The statute fixes the legal threshold and rate. It does not allow an owner or adviser today to calculate reliably whether a particular $4 million–$6 million unit will cross the line. That determination depends on DOF's yet-to-be-published operational methodology.
How to think about $4M–$6M units
A unit with a Phase 2 DOF value below $5 million falls below the Phase 2 threshold. A Phase 2 value of exactly $5 million meets the threshold. A Phase 2 value above $5 million also meets the threshold and falls into the 0.8% tier, assuming the unit is otherwise covered and not exempt.
A unit that DOF values at $4 million under the eventual Phase 2 method would not meet the Phase 2 threshold. A unit valued at $6 million would meet it and would fall in the 0.8% tier. These examples describe the statute's result after DOF determines the Phase 2 value; they do not establish what DOF will value any particular unit at.
The transition is especially important for condos and co-ops currently between $1 million and $5 million. Those units can be subject to the Phase 1 surcharge through June 30, 2028, but the statutory Phase 2 threshold rises to $5 million beginning July 1, 2028. A current $4 million tax-roll value does not establish either that the unit will remain taxable or that it will become exempt in Phase 2, because the later test uses the unpublished Phase 2 valuation method.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows that roughly 24,000 condo, co-op, and house units citywide would be exposed to the surcharge if they are non-primary residences. In Manhattan, 16,709 condo and co-op units fall above the Phase 1 $1 million threshold, with a median surcharge of $53,665. Brooklyn shows 649 condo and co-op units above the threshold, with a median surcharge of $46,763. These are exposure figures; most units are primary residences and owe nothing.
Deadlines and dates currently established
The exemption application deadline is October 13, 2026, extended by DOF on October 6, 2026 from the prior October 6 date. The extension applies to everyone who received a DOF non-primary notice. Owners claiming that the property is a primary residence or otherwise qualifies for an exclusion should use the DOF application and deadline stated in the notice or applicable DOF instructions.
For tax years 2026/27 and 2027/28, the Tax Commission appeal deadline is March 1, 2027 for Tax Class Two properties and March 15, 2027 for Tax Class One properties. Those dates apply where the owner appeals both the DOF primary-residence determination and the DOF market-value determination at the same time.
Conquest's free DOF market-value and surcharge checker shows the Phase 1 exposure for any NYC address. The tool uses the DOF July 2026 Supplemental Market Value Roll and calculates the surcharge that would apply if the unit is a non-primary residence. It does not predict Phase 2 values, because DOF has not published the methodology.
Frequently asked questions
Is my $4.5 million apartment subject to the pied-à-terre tax after July 2028?
Beginning July 1, 2028, only units with a phase two market value of at least $5 million are subject to the surcharge. Whether your unit meets that threshold depends on DOF's unpublished Phase 2 valuation methodology, so a current $4.5 million value does not establish whether you will owe the tax under Phase 2.
How much is the pied-à-terre tax on a $6 million condo in Phase 2?
A unit valued at $6 million under the Phase 2 method would fall in the 0.8% tier, resulting in a $48,000 annual surcharge if it is a non-primary residence and otherwise covered. The Phase 2 rate for values between $5 million and $15 million is 0.8%.
Does the pied-à-terre tax threshold change in 2028?
Yes, the threshold rises to $5 million on July 1, 2028 for condos and co-ops, replacing the Phase 1 threshold of $1 million that applies through June 30, 2028. One-, two-, and three-family homes remain at the $5 million threshold in both phases.