Authority & status
| Statute | New York Tax Law Article 30-C (§1353) — the "non-primary residence property surcharge" |
| Enacted | Passed by the NY State Legislature May 27, 2026 · Signed May 28, 2026 · Effective July 1, 2026 |
| Administrative rules | DOF final rules adopted July 14, 2026 (Phase 1) |
| Litigation | Rollout-procedure challenge pending (Richmond County); the tax itself has not been struck and no filed case asks to strike it. Rollout continues per the Appellate Division's August 13, 2026 order, pending an August 31, 2026 hearing. Tracker. |
| Sunset | June 30, 2031, unless renewed |
Phase 1 rates (July 1, 2026 – June 30, 2028)
Applied to the full DOF market value once the threshold is crossed, under the flat-rate reading DOF's adopted rules support and our counsel confirms (some commentators read the brackets as marginal — the interpretive note states both readings).
| Condos & co-ops (DOF market value) | Rate (flat, full value) |
|---|
| Over $1,000,000 to $3,000,000 | 4% |
| Over $3,000,000 to $5,000,000 | 5.25% |
| Over $5,000,000 | 6.5% |
| 1–3 family houses (DOF market value) | Rate (flat, full value) |
|---|
| Over $5,000,000 to $15,000,000 | 0.8% |
| Over $15,000,000 to $25,000,000 | 1.05% |
| Over $25,000,000 | 1.3% |
Valuation base
| Base | DOF market value — the "Market Value" line on the NOPV. Not assessed value; not sale price. The three numbers, distinguished. |
| Co-ops | Building DOF value × the unit's ownership share. DOF published per-unit values for 36,677 co-op units (764 buildings) on the July 2026 roll. |
| Abatements | Existing abatements, credits and exemptions do not offset the surcharge — it stacks on the regular bill. |
| Phase 2 base | Comparable sales, from July 1, 2028; DOF methodology unpublished as of this page's date. Phase-2 analysis. |
Deadlines & timeline
| Taxable status date | January 5 — primary-residence status is measured as of this date for the following fiscal year |
| Notices | DOF mails "you may be subject" notices by August 30, 2026 (~17,000 sent); each opens a 30-day response window |
| Exemption applications | September 18, 2026 — all property types (extended; earlier published dates superseded) |
| First payment | With the January 1, 2027 property-tax bill |
| Phase 2 | July 1, 2028 — uniform $5M threshold, comparable-sales base |
| Sunset | June 30, 2031 |
Exemptions (claimed, not automatic)
| Primary residence | Owner occupies more than half the year as primary residence |
| Immediate family | Spouse, child, sibling, parent, grandparent or grandchild occupies more than half the year as their primary residence |
| 12-month lease | Bona fide arm's-length lease of at least 12 months to a natural-person tenant using the unit as primary residence |
| Entities | LLCs, partnerships, corporations, trusts: full look-through to natural persons; tiered structures disregarded |
Penalties
| False primary-residence documentation | 50% of the surcharge, on top of the reimposed tax |
| Misleading valuation submissions | Up to 300% of the understatement, capped at 50% of the surcharge |
Primary sources
About this page. Maintained by Conquest, a licensed New York real estate brokerage, as a citation reference; it is educational information, not legal, tax or accounting advice. Cite as: "Rates, Base & Deadlines — NYC Non-Primary Residence Surcharge Reference, PiedATerreTax.nyc by Conquest, as of August 15, 2026." Corrections: see the editorial policy. Tools: calculator · building database.