Phase-one rates lock through June 2028
New York City's non-primary-residence surcharge took effect July 1, 2026, and the current rate schedule runs through June 30, 2028. For condominiums and cooperatives, the surcharge is 4 percent on market values from $1 million to under $3 million, 5.25 percent from $3 million to under $5 million, and 6.5 percent at $5 million or more, according to the adopted Department of Finance rules. One-, two-, and three-family homes face rates of 0.8 percent, 1.05 percent, and 1.3 percent at thresholds beginning at $5 million.
The base is DOF's market value—the figure on the Notice of Property Value—not assessed value. For a $4.5 million condo, the phase-one surcharge is 5.25 percent of $4.5 million, or $236,250 annually. The rate applies to the full market value once the threshold is crossed; there is no marginal calculation.
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. Manhattan accounts for 16,709 condos and co-ops over the $1 million threshold, with a median surcharge of $53,665.
The 2028 valuation reset
Beginning July 1, 2028, the statute directs DOF to calculate a new market value for condos and co-ops using comparable sales. The phase-two rate schedule for those properties mirrors the house schedule: 0.8 percent from $5 million to under $15 million, 1.05 percent from $15 million to under $25 million, and 1.3 percent at $25 million or more.
A $4.5 million condo that pays $236,250 under phase one would, if comparable sales in 2028 lift the valuation to $6 million, pay 0.8 percent of $6 million—$48,000—under phase two. The rate drops because the new schedule begins at $5 million. If comparable sales instead push the unit to $16 million, the rate rises to 1.05 percent and the surcharge climbs to $168,000.
The statute does not state what happens to units valued below $5 million in phase two. The phase-two schedule lists no rate for market values under that threshold, but neither the law nor DOF rules explicitly exempt those properties. An owner whose unit revalues to $4.8 million in 2028 may owe nothing, or may remain subject to a rate DOF has not yet specified.
What owners near the line face now
Conquest's roll analysis shows 4,400 condo and co-op units citywide with market values within $100,000 of the $1 million threshold—close enough that a routine DOF revaluation could push them over. Another 10,344 units sit within $200,000 of the line.
An owner at $980,000 today owes nothing. If DOF's next valuation cycle moves the unit to $1.02 million, the surcharge jumps to $40,800 annually under the 4 percent rate. That owner has two years of exposure before the 2028 reset, which may or may not reduce the bill depending on where comparable sales land.
The surcharge is scheduled to be repealed June 30, 2031 unless Albany changes the law. For an owner deciding whether to sell now or wait, the question is whether two years of phase-one payments plus an uncertain phase-two outcome is cheaper than exiting before the first bill arrives in early 2027.
What to watch
DOF has not published the comparable-sales methodology it will use in 2028, and the statute does not specify whether units below $5 million in phase two owe a surcharge or are exempt. Owners near today's thresholds should monitor DOF guidance on the phase-two valuation process and any clarification of the sub-$5 million treatment.
The first bills are expected in November 2026, according to the NYC Comptroller's October 16 report. Owners who missed the October 13 exemption deadline can appeal DOF's determination to the NYC Tax Commission within 30 days of receiving notice.
Conquest offers a free DOF market-value and surcharge calculator at piedaterretax.nyc. The tool uses your property's current market value to estimate exposure under both phase-one and illustrative phase-two scenarios, though the final 2028 outcome will depend on comparable sales DOF has not yet conducted.
Frequently asked questions
How much is the pied-à-terre tax on a $4.5 million condo right now?
A $4.5 million condo pays a 5.25 percent surcharge on the full market value under the phase-one schedule, which equals $236,250 annually through June 2028. The rate applies to the entire market value once the threshold is crossed, with no marginal calculation.
Does the pied-à-terre tax rate change in 2028?
Yes, beginning July 1, 2028, condos and co-ops move to a new rate schedule that starts at 0.8 percent for values from $5 million to under $15 million, 1.05 percent from $15 million to under $25 million, and 1.3 percent at $25 million or more. A $4.5 million condo paying $236,250 under phase one would pay $48,000 if revalued to $6 million in 2028, though the statute does not specify what happens to units valued below $5 million in phase two.
Is my apartment subject to the surcharge if it's valued just under $1 million?
An owner at $980,000 today owes nothing, but if DOF's next valuation cycle moves the unit to $1.02 million, the surcharge jumps to $40,800 annually under the 4 percent rate. Conquest's analysis shows 4,400 condo and co-op units citywide sit within $100,000 of the $1 million threshold and could be pushed over by a routine revaluation.