The surcharge is a property tax, not an income tax
New York City's non-primary-residence surcharge took effect July 1, 2026, under Tax Law Article 30-C. It applies to condominiums, cooperatives, and one- to three-family homes above statutory market-value thresholds that are not used as a primary residence. The surcharge is calculated by multiplying a rate—ranging from 0.8 percent to 6.5 percent—by the property's DOF market value, not by the owner's income, capital gain, or country of residence.
That design places the surcharge outside the scope of bilateral income-tax treaties. A treaty allocates taxing rights over income, dividends, interest, capital gains, or estates. Article 30-C imposes a percentage charge on the market value of qualifying New York City real property. The statute contains no treaty-based exemption, and the levy does not turn on the owner's tax residence or nationality.
The October 13, 2026, exemption-application deadline has passed for the 2026–2027 tax year. Owners who did not file by that date and who do not qualify for primary-residence treatment will see the surcharge on their next bill. The City extended the deadline three times—from August 21 to September 18, then to October 6, and finally to October 13—but the operative cutoff is now behind us.
What the statute taxes
Article 30-C defines six rate bands. For condominiums and cooperative units, the rates are 4.0 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. For one-, two-, or three-family homes, the rates are 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.
The base is the DOF market value shown on the Notice of Property Value, not the property's assessed value or purchase price. For cooperatives, the relevant figure is the market value of the residential cooperative dwelling unit, derived from the building's total market value and the unit's statutory share ratio. DOF's October 26, 2026, public guidance confirms that the surcharge 'is based on market value, not assessed value.'
Conquest's analysis of DOF's July 2026 Supplemental Market Value Roll shows that roughly 24,000 units citywide would owe the surcharge if they are non-primary residences. Most are primary residences and owe nothing; these are exposure figures, not a forecast of what the City will collect. Manhattan accounts for roughly 20,000 of those units—16,700 condominiums and cooperatives and 3,400 houses.
Why a treaty does not create an exemption
A U.S. income-tax treaty addresses the treatment of wages, business profits, dividends, interest, royalties, capital gains, pensions, and sometimes wealth or estate taxes. The treaty allocates taxing rights between the United States and the treaty partner, often granting the country of residence exclusive or primary jurisdiction over certain income categories and limiting the source country's withholding rate on others.
Article 30-C does not tax income or gains. It imposes a surcharge on the market value of covered real property located in New York City. The charge accrues because the property exceeds a statutory value threshold and is not used as a primary residence by the owner or a qualifying family member. The owner's country of residence, the presence of a tax treaty, and the owner's worldwide income are irrelevant to the calculation.
The statute provides a primary-residence exemption if the property is the primary residence of the owner, the owner's spouse, child, sibling, parent, grandparent, or grandchild, or if the property is leased for at least twelve months to an unrelated natural person under an arm's-length agreement. No provision in Article 30-C or DOF's implementing rules references treaty status or creates a treaty-based carve-out.
The arithmetic for a $2.5 million condominium
Consider a condominium unit with a DOF market value of $2.5 million on the July 2026 roll. The unit falls into the $1 million to under $3 million band, which carries a 4.0 percent surcharge rate. The annual surcharge is $2.5 million × 0.04 = $100,000.
If the owner is a French national living in Paris and the unit is not the primary residence of the owner or a qualifying family member, the surcharge applies in full. The U.S.–France income-tax treaty does not exempt the property. If the owner is a U.S. citizen living in California and the unit is a pied-à-terre, the result is identical: $100,000 annually.
The only way to avoid the charge is to satisfy the primary-residence test or to lease the unit under the twelve-month arm's-length rule. Treaty status does not enter the analysis because the surcharge is not imposed on income, gains, or any category that treaties cover.
The October 13 deadline and what comes next
DOF transmitted initial determination notices by August 30, 2026, for the fiscal year beginning July 1, 2026. Owners had until October 13, 2026, to file an exemption application. The deadline was extended three times during the rollout, but October 13 is the operative cutoff reported in professional guidance as of October 29.
An owner who missed the October 13 deadline and believes DOF's determination is incorrect may appeal within thirty days of the date DOF transmitted the notice. If no notice was transmitted, the appeal period is thirty days after the surcharge first appears on the assessment roll. Valuation or determination appeals are filed with the New York City Tax Commission, with the relevant filing deadline expected in March 2027 for the 2026–2027 cycle.
A court order issued in early October would have eliminated the exemption process and shifted the framework toward DOF determinations followed by owner challenges. The City appealed, and the appeal triggered an automatic stay, so the order did not take effect while the stay remained in place. As of late October, DOF had granted more than 6,800 exemptions, and the Appellate Division was examining the rollout. The litigation is ongoing, but the October 13 application deadline governed the 2026–2027 filing.
The exposure in Manhattan's core neighborhoods
Conquest's roll analysis identifies the ZIP codes with the highest unit counts above the $1 million threshold. The 10013 ZIP—covering Tribeca—has 1,751 condominium and cooperative units that would owe the surcharge if they are non-primary residences, with a median market value of roughly $1.43 million. The 10022 ZIP, spanning Midtown East, has 1,245 units and a median of $1.36 million. The 10021 ZIP on the Upper East Side has 1,368 units and a median of $1.32 million.
The 10019 ZIP, which includes parts of Hell's Kitchen and the West 50s, has 975 units with an average hypothetical surcharge of roughly $86,900. The 10012 ZIP in SoHo and NoHo has 932 units and an average of $86,500. These figures assume every unit is non-primary; in reality, most are primary residences and owe nothing.
Roughly 4,400 condominium and cooperative units citywide have DOF market values within $100,000 of the $1 million threshold. A modest upward revaluation in the next assessment cycle would push those units into the surcharge zone. Another 10,300 units sit within $200,000 of the threshold. Owners in that band should verify their current DOF market value and confirm their primary-residence status before the next filing cycle.
Phase two and the shift to comparable-sales valuation
Article 30-C is scheduled to repeal on June 30, 2031. The statute includes a phase-two provision that takes effect July 1, 2028. Under phase two, DOF will revalue condominiums and cooperatives using a comparable-sales methodology rather than the income-capitalization approach currently used for Class 2 properties. The phase-two rates for condominiums and cooperatives align with 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.
The shift to comparable sales is expected to raise market values for many units, particularly in neighborhoods where recent transactions have outpaced the income-based assessments. A unit with a current DOF market value of $4 million might revalue to $6 million or $7 million under comparable sales, moving it into a higher rate band even though the statutory rate schedule drops. The phase-two outlook is not a computed number; it is a structural change that owners should model once DOF publishes the new valuations.
The phase-two framework does not create a treaty exemption any more than phase one does. The surcharge remains a property-based levy calculated on DOF market value. An owner's tax residence and treaty status are irrelevant to the charge.
What to verify now
Check your property's current DOF market value using the Notice of Property Value or DOF's online property portal. For a condominium or cooperative, the relevant figure is the market value line, not the assessed value. Assessed value for Class 2 properties is roughly 45 percent of market value and is used only to calculate the regular property tax, not the surcharge.
If your DOF market value exceeds the statutory threshold and the property is not your primary residence or that of a qualifying family member, you are exposed to the surcharge unless you lease the unit under the twelve-month arm's-length rule. The October 13, 2026, exemption deadline has passed for the 2026–2027 tax year, but owners who believe DOF's determination is incorrect may appeal within thirty days of the notice date.
Conquest's free DOF market-value and surcharge checker shows your property's current exposure and calculates the annual charge under both phase-one and phase-two rate schedules. The tool pulls data directly from DOF's roll and applies the statutory formula. It is not a substitute for legal or tax advice, but it gives you the arithmetic DOF will use when the bill arrives.
Frequently asked questions
Does my tax treaty with the U.S. exempt my NYC apartment from the pied-à-terre surcharge?
No, the surcharge is a property tax based on market value, not an income tax, so bilateral income-tax treaties do not apply. The statute contains no treaty-based exemption, and the levy does not depend on the owner's tax residence, nationality, or worldwide income.
How much is the surcharge on a $2.5 million condominium that isn't my primary residence?
A condominium with a DOF market value of $2.5 million falls into the $1 million to under $3 million band, which carries a 4.0 percent rate, resulting in an annual surcharge of $100,000. The charge applies equally whether the owner is a foreign national or a U.S. citizen, because treaty status is irrelevant.
Is the October 13, 2026 exemption deadline still in effect for the NYC pied-à-terre tax?
Yes, the October 13, 2026 deadline has passed for the 2026–2027 tax year. Owners who did not file by that date and do not qualify for primary-residence treatment will see the surcharge on their next bill, though those who believe DOF's determination is incorrect may appeal within thirty days of the notice date.