One date controls the entire fiscal year
New York City's pied-à-terre surcharge turns on a single fact: the property's value, ownership, and primary-residence status as of January 5 each year. That taxable status date, borrowed from the city's ordinary property-tax calendar, fixes the surcharge for the fiscal year beginning the following July 1, according to DOF's final rules published in the City Record. A condo owner who moves into a unit in March or sells it in November does not change the January 5 determination for that fiscal year.
For fiscal 2026–27—the surcharge's first year—DOF evaluated every property as of January 5, 2026. The next snapshot is January 5, 2027, which will govern fiscal 2027–28. The statute, signed May 28, 2026 and effective July 1, 2026, sunsets June 30, 2031.
What the taxable status date captures
DOF's implementing regulation states that the department 'must evaluate the property's value and the surcharge's applicability—including primary-residence and excluded-property questions—as of the taxable-status date for each fiscal year.' The Comptroller's initial revenue estimate likewise describes primary residence and taxable status as determined on January 5 of the calendar year preceding the fiscal year in which the surcharge is imposed.
The surcharge applies to covered residential property—condos, co-ops, and one-to-three-family houses—that is not used as a primary residence and whose market value exceeds the statutory threshold. Market value means the figure on DOF's Notice of Property Value, not assessed value. DOF's final rules (19 RCNY ch. 62) state: 'Because the surcharge is based on market value, not assessed value, DOF notes that these rolls are required to include the applicable market values of properties, not assessed values.'
For condos and co-ops in Phase 1 (fiscal years 2026–27 through 2027–28), the surcharge is 4 percent of market value between $1 million and $3 million, 5.25 percent from $3 million to $5 million, and 6.5 percent at $5 million and above. One-to-three-family houses face 0.8 percent from $5 million to $15 million, 1.05 percent from $15 million to $25 million, and 1.3 percent at $25 million and above. 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; most are primary homes and owe nothing.
Why a move during the year does not erase the bill
A taxpayer who converts a pied-à-terre to a primary residence in August will not see relief for the fiscal year already underway. The January 5 facts are locked. DOF does not prorate the surcharge for partial-year occupancy, and the available official materials identify no automatic midyear cancellation mechanism for a later move.
The same principle runs forward. An owner who establishes primary residence after January 5, 2027 may qualify for an exemption beginning in fiscal 2028–29, but the 2027–28 surcharge will still reflect the January 5, 2027 snapshot. The rule protects both the city and the taxpayer from continuous re-evaluation: DOF assesses once, and the owner knows the year's liability by late summer.
One Manhattan co-op owner whose unit carried a $1.8 million market value on January 5, 2026 would face a $72,000 surcharge for fiscal 2026–27 if the unit is non-primary, even if she moved in full-time on February 1, 2026. The move matters for the next year, not the current one.
Exemptions and the October 13 deadline
DOF mailed initial notices on July 22, 2026 to owners whose records did not establish primary-residence status. The original response deadlines were August 21, 2026 for homes and condos and August 24, 2026 for co-ops. DOF extended the deadline to September 18, 2026, then to October 6, 2026, and finally to October 13, 2026, according to DOF's current public webpage. The October 13 date is the operative deadline; earlier dates are superseded.
Owners qualify for an exemption if the property is the primary residence of the owner or an immediate family member (spouse, child, sibling, parent, grandparent, or grandchild), or if a natural person holds a 12-month arm's-length lease. Entity owners are subject to majority-interest look-through rules. Ordinary property-tax abatements and exemptions do not offset the surcharge.
Owners who received a notice and believe they qualify may still challenge DOF's determination through the NYC Tax Commission's administrative process. The general rule allows rebuttal evidence within 30 days after transmittal of a notice. On September 29, 2026, a New York Supreme Court judge issued an order cancelling approximately 17,000 previously mailed DOF notices, but the available materials do not establish whether that order invalidated the surcharge itself or merely affected the administrative process. The legal consequences remain unsettled.
What to watch for January 5, 2027
The next taxable status date is January 5, 2027. Owners who moved into a unit, established a qualifying lease, or transferred the property to a family member after January 5, 2026 should make sure DOF's records reflect the change before the 2027 snapshot. The first surcharge bills for fiscal 2026–27 are scheduled to appear on the property-tax statement due January 1, 2027.
Phase 2 begins July 1, 2028, when DOF will revalue condos and co-ops on a comparable-sales basis and apply the lower house rate schedule (0.8 percent to 1.3 percent) to units at or above $5 million in market value. The Comptroller projected roughly $500 million in annual revenue, though that figure predates the September court order and assumes a stable base of non-primary units.
Conquest offers a free DOF market-value and surcharge estimator at the link below. The tool pulls your property's current market value from DOF's roll and calculates the surcharge you would owe if the unit is non-primary. It does not provide legal or tax advice, and every owner should consult a qualified advisor before filing an exemption application or appeal.
Frequently asked questions
Is my apartment subject to the pied-à-terre tax if I moved in after January 5?
A taxpayer who converts a pied-à-terre to a primary residence in August will not see relief for the fiscal year already underway, because the January 5 facts are locked. An owner who establishes primary residence after January 5, 2027 may qualify for an exemption beginning in fiscal 2028–29, but the 2027–28 surcharge will still reflect the January 5, 2027 snapshot.
How much is the pied-à-terre tax on a $2 million condo?
For condos in Phase 1 (fiscal years 2026–27 through 2027–28), the surcharge is 4 percent of market value between $1 million and $3 million. A $2 million condo would therefore face an $80,000 annual surcharge if it is not used as a primary residence.
Does the NYC pied-à-terre tax use assessed value or market value?
The surcharge is based on market value—the figure on DOF's Notice of Property Value—not assessed value. DOF's final rules state that the rolls are required to include the applicable market values of properties, not assessed values.