The short answer: a 1–3-family house owes the surcharge only above $5,000,000 of DOF market value, at flat rates of 0.8% ($5M–$15M), 1.05% ($15M–$25M) and 1.3% (above $25M) — on the full value, for years it's nobody's primary residence. A $6M non-primary brownstone: $48,000/yr. Exemption applications were due October 13, 2026.
Why houses are different
Unlike condos and co-ops (income-valued, usually far below sale price), DOF values class-1 houses near their true market price. So the $5M threshold means roughly what it sounds like — and the exposure map follows real luxury-house geography: 3,329 Manhattan and 3,303 Brooklyn houses clear the threshold citywide, making this genuinely a two-borough story. Park Slope, Cobble Hill, Brooklyn Heights and the West Village carry it; see the Brooklyn page for the ZIP-level counts.
House-specific mechanics
- No apartment number needed — the whole property is one lot; our checker prices it directly (tick the "1–3 family house" box).
- The classic exposure pattern is the kept family townhouse: inherited, held "for the kids," or waiting out the market while the owners live elsewhere. Probate does not pause the clock.
- Mixed cases exist: DOF classes some properties ambiguously between the house and condo schedules (a condo on a class-1 lot). Where that's true of yours, our reports show both possible figures — your official DOF notice resolves which applies.
- Phase 2 changes little for houses — the $5M/0.8–1.3% schedule continues; the 2028 re-basing mainly affects condos and co-ops.
The exits are unchanged
Primary occupancy, immediate-family occupancy, or a bona fide 12-month lease — a leased brownstone at Brooklyn rents usually beats a $48,000 surcharge decisively. The math framework: keep, rent, or sell. The documentation and deadlines: exemptions · the notice playbook.
Questions owners ask
Do NYC townhouses pay the pied-à-terre tax?
Only above $5,000,000 of DOF market value — a much higher threshold than the $1M condo/co-op test — at flat rates of 0.8% ($5M–$15M), 1.05% ($15M–$25M) and 1.3% (above $25M) on the full value, for years the house is not a primary residence of the owner, an immediate family member, or a 12-month tenant. About 6,700 houses citywide clear the threshold, split almost evenly between Manhattan and Brooklyn.
How does DOF value a townhouse for the surcharge?
Near true market price — unlike condos and co-ops, which are income-valued far below sale prices. A townhouse that would sell for $6M will generally carry a DOF market value near that figure, owing $48,000/yr (0.8% of the full value) if non-primary.
Does the surcharge apply to a two-family house where my tenant lives?
If a tenant occupies it under a bona fide arm's-length lease of 12+ months as their primary residence, the property is exempt. Owner or immediate-family primary occupancy also exempts it. An empty or seasonally-used house over $5M owes.
Is your house over the $5M line — officially?
Free emailed report: your property's DOF market value, the surcharge test, and the lease-vs-sell math if it applies. No apartment number needed.
Check My Unit — FreeDisclaimer. This page is educational information from Conquest, a licensed New York real estate brokerage. It is not legal, tax, or accounting advice, and no advisory relationship is created by reading it. Deadlines and figures reflect DOF's published rules and roll as of the "last updated" date above.