New York City's pied-à-terre tax—a surcharge on non-primary residences with market values above $1 million—took effect July 1, 2026, but its first year remains clouded by litigation over the initial notice process. By mid-2027, owners and the city will know how many properties were ultimately billed, how much revenue the surcharge generated, and whether the Department of Finance's rollout withstands judicial scrutiny.
The surcharge is calculated on the property's market value—the figure that appears on the Notice of Property Value, not the lower assessed value used for regular property tax. DOF's final rules (19 RCNY ch. 62) state verbatim that 'the surcharge is based on market value, not assessed value.' For condos and co-ops, the rate is flat: 4 percent if market value falls between $1 million and $3 million, 5.25 percent from $3 million to $5 million, and 6.5 percent at $5 million or above. Once a property clears the threshold, the rate applies to the full market value, not just the excess.
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 above the $1 million threshold, with a median surcharge of $53,665. Brooklyn has 649 condos and co-ops exposed, with a median of $46,763. Most of those units are primary residences and owe nothing; the figures represent exposure, not a forecast of what the city will collect.
The September 29 ruling and its aftermath
On September 29, 2026, a Richmond County Supreme Court judge ruled that DOF's publication of the 900,000-property supplemental roll was unlawful and directed the city to cancel previously mailed notices, remove the roll from its website, and issue individualized determinations before sending new notices. The city filed a notice of appeal the same day. As of November 4, 2026, the appeal has not been resolved, leaving the legal status of the original notices and the timing of any replacement notices unsettled.
DOF had mailed notices to approximately 17,000 owners in August 2026, following publication of the supplemental roll on July 24. The exemption deadline was extended twice, ultimately to October 13, 2026. The first surcharge bills were expected on or about November 15, 2026, with payment due January 1, 2027, but the litigation creates uncertainty about whether those bills will proceed on schedule for owners whose original notices are canceled or replaced.
What mid-2027 will clarify
By mid-2027, the first-year record should establish the number of properties ultimately billed, the amount collected, and the volume and outcomes of DOF exemption applications and Tax Commission appeals. Owners disputing valuation may file Form TC107 with the Tax Commission; professional guidance reports the deadline for the 2026–27 cycle falls in March 2027, though the exact date is not specified in the available sources.
The Comptroller projected roughly $500 million in annual revenue, but the final figure will depend on how many units are confirmed as non-primary residences and whether the individualized notice process survives judicial review. Conquest's free DOF market-value checker draws on the July 2026 Supplemental Market Value Roll and shows the surcharge a unit would owe if it is non-primary; owners can compare that figure to their Notice of Property Value to confirm the calculation.
Frequently asked questions
Is the pied-à-terre tax calculated on my apartment's assessed value or market value?
The surcharge is based on market value—the figure on your Notice of Property Value—not the lower assessed value used for regular property tax. DOF's final rules state verbatim that 'the surcharge is based on market value, not assessed value.'
How much is the pied-à-terre tax on a $4 million condo in Manhattan?
For a condo with a market value of $4 million, the rate is 5.25 percent applied to the full market value, resulting in a surcharge of $210,000. The rate applies to the entire market value once the property clears the $1 million threshold, not just the excess.
Does the September 2026 court ruling change when I have to pay the pied-à-terre tax?
The September 29, 2026 ruling directed the city to cancel previously mailed notices and issue individualized determinations, creating uncertainty about whether bills will proceed on the original schedule (November 15, 2026 billing, January 1, 2027 payment). The city appealed the same day, and as of November 4, 2026, the appeal has not been resolved.