What happens to the pied-à-terre tax in 2031?
New York City's non-primary-residence surcharge—commonly called the pied-à-terre tax—expires on June 30, 2031. The statute, Article 30-C of the New York Real Property Tax Law, contains a repeal provision that takes effect on that date. No Albany extension has been enacted, according to the New York Senate's current codification and professional sources reviewed through November 5, 2026.
Whether the Legislature will act before the sunset is unsettled. The surcharge was signed May 28, 2026, took effect July 1, 2026, and has generated litigation over its implementation. The City Comptroller projected roughly $500 million in annual revenue from the surcharge, a figure that would make the tax a material line item in the city budget if it runs its full five-year course.
What are the current rates and thresholds?
The surcharge applies to non-primary residences above statutory market-value thresholds. For condos and co-ops in Phase 1 (July 1, 2026 through June 30, 2028), the rates are 4 percent on market value between $1 million and $3 million, 5.25 percent on $3 million to $5 million, and 6.5 percent on $5 million or more. For houses and one-to-three-family properties, the rates are 0.8 percent on $5 million to $15 million, 1.05 percent on $15 million to $25 million, and 1.3 percent on $25 million or more.
The base is the DOF market value—the 'Market Value' line on the Notice of Property Value—not the assessed value used for regular property tax. For Class-2 condos and co-ops, assessed value is roughly 45 percent of market value and is used only for the regular tax calculation. The surcharge is flat: once market value clears the threshold, the bracket rate applies to the full market value, not just the excess.
A $2 million condo would owe $80,000 annually under the 4 percent rate. A $6 million condo would owe $390,000 under the 6.5 percent rate. A $10 million house would owe $80,000 under the 0.8 percent rate. These are the amounts due if the property is a non-primary residence; most properties above the thresholds are primary residences and owe nothing.
How many properties are exposed?
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 16,709 condos and co-ops above the $1 million threshold, with an average surcharge of $68,559 if non-primary. Brooklyn has 3,311 houses above the $5 million threshold, averaging $52,630. The Bronx has 77 houses above $5 million, averaging $67,675. Queens and Staten Island each have fewer than 50 units above the thresholds.
The top ZIP codes by unit count are 10013 (Tribeca, 1,751 condo/co-op units), 10022 (Midtown East, 1,245 units), and 10021 (Upper East Side, 1,368 units). The highest average surcharges are in 10019 (Midtown West, $86,862) and 10012 (SoHo/NoHo, $86,469). Roughly 4,400 condo and co-op units sit within $100,000 of the $1 million threshold and would cross into surcharge territory with modest market-value increases.
What did the September court ruling change?
On September 29, 2026, New York State Supreme Court Justice Wayne M. Ozzi ruled that DOF's rollout was arbitrary, capricious, and unlawful, according to a professional summary of the decision. The ruling found that DOF improperly shifted the burden to homeowners to establish that their properties were primary residences. It ordered the City to cancel previously mailed notices, remove the existing supplemental roll, and make individualized initial determinations using available tax information before issuing new notices.
The City filed a notice of appeal the same day. Professional sources report that the City continued implementing the surcharge while the appeal proceeded. The litigation affects the implementation and notice process, but it has not repealed Article 30-C. The surcharge remains part of New York law, subject to the pending litigation and appeal.
What are the current deadlines?
DOF's current public guidance states that the deadline to apply for a 2026–27 exemption was October 13, 2026. The original deadline was August 21, 2026 for one-to-three-family homes and condo units, and August 24, 2026 for co-op units. DOF extended the deadline to September 18, 2026, then to October 6, 2026, and finally to October 13, 2026. The October 13 date is the operative deadline; the earlier dates are superseded.
Owners who disagree with DOF's valuation determination may appeal to the NYC Tax Commission. The Tax Commission review period remains available through March 15, 2027, according to a professional analysis. This is distinct from responding to DOF's initial notice.
What happens in Phase 2?
From July 1, 2028, the surcharge enters Phase 2. Condos and co-ops will be revalued on comparable sales toward the $5 million threshold and the 0.8 percent, 1.05 percent, and 1.3 percent rates that currently apply to houses. The statute does not specify the exact Phase 2 rates for condos and co-ops below $5 million, and DOF has not published final rules for that period.
The Phase 2 revaluation is an outlook, not a computed number. Owners of condos and co-ops currently above the $1 million threshold should expect the surcharge to continue through June 30, 2031, unless the litigation or an Albany repeal intervenes.
What should owners watch next?
The appeal of the September 29 ruling is pending. If the City prevails, the surcharge will continue under the current implementation. If the plaintiffs prevail, DOF will be required to make individualized determinations before issuing new notices, which could delay or reduce the number of properties subject to the surcharge.
In Albany, the statute's June 30, 2031 repeal date remains on the books. Whether the Legislature will extend the surcharge beyond that date is unsettled. The City Comptroller's $500 million annual revenue projection makes the tax a material budget item, which could create pressure for an extension if the city's fiscal position tightens.
Owners of properties above the thresholds should verify their DOF market value and surcharge exposure. Conquest's free checker at piedaterretax.nyc calculates the surcharge based on the DOF July 2026 Supplemental Market Value Roll and the current Phase 1 rates.
Frequently asked questions
Does the pied-à-terre tax expire, or is it permanent?
The pied-à-terre tax expires on June 30, 2031. The statute contains a repeal provision that takes effect on that date, and no Albany extension has been enacted as of November 5, 2026.
How much is the pied-à-terre tax on a $2 million condo in NYC?
A $2 million condo classified as a non-primary residence would owe $80,000 annually under the 4 percent rate. The surcharge applies to the full market value once the property clears the $1 million threshold for condos and co-ops.
Did the September 2026 court ruling repeal the pied-à-terre tax?
No, the September 29, 2026 ruling did not repeal the tax. The ruling found DOF's rollout unlawful and ordered the City to make individualized determinations before issuing new notices, but the surcharge remains part of New York law subject to the pending appeal.