The valuation fork
New York's pied-à-terre surcharge, effective July 1, 2026, calculates liability on market value—not assessed value—and the path to that number depends on whether the property is a condominium or a cooperative. A condo unit is valued as an individual lot. A co-op apartment is valued through the building's market-value framework, then allocated to the shareholder's percentage interest.
The surcharge is flat once a unit clears the threshold: 4 percent on the full market value between $1 million and $3 million, 5.25 percent from $3 million to $5 million, and 6.5 percent above $5 million during Phase 1 (through June 30, 2028), according to the Department of Finance's final rules adopted under Administrative Code §§ 11-3201 and 11-3202. A condo owner sees the unit's market value on the annual Notice of Property Value. A co-op shareholder must trace the building's applicable market value, multiply by the unit's share percentage, and confirm the result crosses the $1 million threshold.
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows 17,371 condo and co-op units citywide would owe the surcharge if they are non-primary residences—16,709 of them in Manhattan, where the median surcharge among exposed units is $53,665. Brooklyn accounts for 649 exposed condo and co-op units, with a median surcharge of $46,763. The Bronx has five exposed units, Queens eight, and Staten Island none in the condo/co-op category.
Co-op allocation: no universal formula
Professional summaries reviewed in October 2026 confirm that co-op thresholds tie to Phase 1 or Phase 2 market value but establish no universal formula that would let an owner calculate the surcharge solely from the number of shares listed in a proprietary lease. DOF uses the cooperative property's market-value framework and allocates the relevant value to the unit through the shareholder's ownership interest, according to Holland & Knight's October 29, 2026 update.
A published share percentage is not dispositive without applying DOF's valuation methodology. Two co-op units with identical share counts in buildings of different total market value will face different surcharges. The same unit may also face a different surcharge year-over-year if the building's market value changes, even if the share percentage stays constant.
A co-op owner disputing the surcharge must challenge the building valuation, the share-percentage allocation, or both—not simply the unit description. A condo owner's dispute centers on the unit's own comparables and any clerical errors in the unit's market-value line.
Filing deadlines: the three-day co-op window that vanished
DOF initially set the exemption deadline at August 21, 2026 for homes and condominiums and August 24, 2026 for cooperative apartments. On September 18, 2026, the department extended the deadline to September 18 for all property owners who received a notice, eliminating the three-day distinction.
The operative deadline for the 2026–27 tax year is now October 13, 2026, extended from October 6, 2026 by Mayor Mamdani and DOF Commissioner Lee on October 6, 2026, according to DOF's current exemption page. Owners who missed that date and believe the property qualifies for exemption—because it is the primary residence of the owner, an immediate family member (spouse, child, sibling, parent, grandparent, or grandchild), or a twelve-month arm's-length tenant—can file a valuation appeal with the NYC Tax Commission, expected in March 2027, though the exact March date is not yet published.
The exemption claim requires evidence that the property is a primary residence. For condos, that evidence concerns the unit and its owner or qualifying occupant. For co-ops, building and shareholder records may be relevant, and the proprietary lease can establish occupancy terms.
Which structure fares better
Neither. The surcharge applies identically to condos and co-ops once market value is determined—same rates, same thresholds, same exemption rules. The difference is procedural: condo owners see their unit's market value directly on the DOF notice; co-op owners must reconstruct it from the building's value and their share percentage.
Conquest's data shows the median market value among exposed Manhattan condo and co-op units in the top twelve ZIP codes ranges from $1.30 million (10065) to $1.63 million (10012). In 10019, 975 units are exposed, with an average surcharge of $86,862. In 10013, 1,751 units are exposed, with an average surcharge of $74,077. Those figures represent what the surcharge would be if the unit is non-primary; most are primary residences and owe nothing.
Citywide, 16,452 condo and co-op units fall in the $1 million to $3 million band, with an average surcharge of $58,048 among exposed units. Another 722 units sit between $3 million and $5 million (average surcharge $192,575), and 197 units exceed $5 million (average surcharge $478,899). An additional 4,400 units are within $100,000 of the $1 million threshold and would cross it with modest appreciation.
What to check now
Owners of either structure should confirm the market value DOF is using and whether the property qualifies for exemption. The first surcharge payment is due January 1, 2027. The surcharge sunsets June 30, 2031, and Phase 2—which revalues condos and co-ops on comparable sales toward a $5 million threshold and lower rates—begins July 1, 2028.
Conquest maintains a free DOF market-value and surcharge checker at piedaterretax.nyc that shows the market value DOF has on file and the resulting surcharge if the property is non-primary. The tool covers condos, co-ops, and one- to three-family homes across all five boroughs.
Frequently asked questions
Is the pied-à-terre tax different for co-ops versus condos in NYC?
The surcharge applies identically to condos and co-ops once market value is determined—same rates, same thresholds, same exemption rules. The difference is procedural: condo owners see their unit's market value directly on the DOF notice, while co-op owners must reconstruct it from the building's value and their share percentage.
How much is the pied-à-terre tax on a $2 million apartment in Manhattan?
The surcharge is 4 percent on the full market value between $1 million and $3 million during Phase 1 (through June 30, 2028), so a $2 million non-primary residence would owe $80,000 annually. The median surcharge among exposed Manhattan condo and co-op units is $53,665.
Does my co-op share percentage determine if I owe the pied-à-terre tax?
A published share percentage is not dispositive without applying DOF's valuation methodology. DOF uses the cooperative property's market-value framework and allocates the relevant value to the unit through the shareholder's ownership interest, so two co-op units with identical share counts in buildings of different total market value will face different surcharges.