The Comptroller's adjusted range
New York City Comptroller Brad Lander's Fiscal Note 2-2026, dated August 2026, estimates the new non-primary-residence surcharge will produce a notional annual levy of approximately $510 million before adjustments. After accounting for units rented to primary residents and behavioral responses—owners changing use, ownership, or residency—the Comptroller projects a collectable range of approximately $340 million to $380 million. The Mayor's budget assumes $500 million beginning in fiscal year 2027.
The gap reflects the Comptroller's caution that not every property above the statutory threshold will generate revenue. The underlying universe contains a little over 11,200 properties in the Comptroller's analysis, but the realized yield depends on how many owners claim exemptions and how many shift their arrangements to avoid the charge.
What the surcharge hits
The surcharge took effect July 1, 2026 and applies to high-value homes, condominiums, and cooperative dwelling units that are not used as a primary residence. For fiscal years beginning July 1, 2026 and before July 1, 2028, the charge is calculated using the property's phase-one market value—the figure DOF publishes on the Notice of Property Value—not assessed value.
For covered Class 1 property (one- to three-family homes), the rates are 0.8 percent on market value between $5 million and $15 million, 1.05 percent from $15 million through $25 million, and 1.3 percent above $25 million. For covered condominium and cooperative dwelling units, the rates are 4 percent on market value between $1 million and $3 million, 5.25 percent from $3 million through $5 million, and 6.5 percent above $5 million. The rate applies to the full market value once the threshold is crossed, not only the excess.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows roughly 24,000 units citywide with market values above the statutory thresholds. Most are primary residences and owe nothing; the figure represents exposure, not a forecast of what the city will collect. Manhattan holds 16,709 condominiums and cooperatives and 3,356 houses above the thresholds. Brooklyn accounts for 3,311 houses and 649 condominiums and cooperatives. The Bronx, Queens, and Staten Island together hold fewer than 150 units above the thresholds.
Exemption deadlines and what comes next
DOF began mailing notices to potentially affected property owners on June 29, 2026. The exemption-application deadline was originally set for late August 2026, then extended to September 18, 2026 by Mayor Zohran Kwame Mamdani and DOF Commissioner Richard Lee. DOF extended the deadline again: October 6, 2026 for residential homes and condominiums, and October 13, 2026 for cooperative units. The different dates reflect the separate application portals DOF maintains for each property type.
Tax Law § 1352 required DOF to provide its primary-residence determination notice no later than August 30, 2026 for the fiscal year beginning July 1, 2026. Owners have 30 days from a notice's transmission date to appeal. The statute does not specify the first-payment due date; DOF implementation materials must be checked directly for the billing schedule.
The Comptroller's October 16 budget commentary continued to identify the Mayor's $500 million projection while warning that prior-proposal assumptions could reduce revenue by approximately $119 million. The statute is scheduled to be repealed on June 30, 2031. Whether the city collects closer to $340 million or $500 million will depend on how many owners file exemptions, how many shift their residency, and how many sell before the first payment comes due.
Conquest's free DOF market-value checker shows whether a property's market value falls above the statutory thresholds and calculates the surcharge amount if the unit is determined to be a non-primary residence. The tool uses DOF's July 2026 Supplemental Market Value Roll and is updated as new rolls are published.
Frequently asked questions
How much revenue is the NYC pied-à-terre tax expected to generate each year?
The Comptroller projects a collectable range of approximately $340 million to $380 million annually, while the Mayor's budget assumes $500 million beginning in fiscal year 2027. The gap reflects uncertainty about how many owners will claim exemptions or change their arrangements to avoid the charge.
What is the tax rate on a non-primary-residence condominium worth $4 million in NYC?
For condominiums valued between $3 million and $5 million that are not primary residences, the rate is 5.25 percent applied to the full market value. A $4 million condominium would owe $210,000 annually if it is determined to be a non-primary residence.
When is the deadline to apply for the primary residence exemption from the NYC pied-à-terre surcharge?
The exemption-application deadline is October 6, 2026 for residential homes and condominiums, and October 13, 2026 for cooperative units. DOF extended these deadlines from the original late-August date to allow more time for owners to file.