New York City’s Pied-à-Terre Tax Is Here: What Property Owners Need to Know
Beginning with the 2026–2027 property tax year, New York City is implementing a new annual Non-Primary Residence Property Surcharge, commonly known as the “Pied-à-Terre Tax.”
The surcharge may apply to certain residential properties that are not used as a primary residence.
According to the New York City Department of Finance, properties potentially affected for the 2026–2027 and 2027–2028 tax years include:
One-, two-, and three-family homes with a DOF market value of $5 million or more
Condominium and cooperative units with a DOF market value of $1 million or more
For properties subject to the surcharge, the published rates currently range from:
0.8% to 1.3% of DOF market value for one-, two-, and three-family homes
4.0% to 6.5% of DOF market value for condominiums and cooperative units
A property may not be subject to the surcharge if it is used as a primary residence by an eligible occupant, including:
The property owner
A tenant or subtenant
An immediate family member of the owner or qualifying majority-interest holder
One or more individuals collectively holding a majority interest in the entity that owns the property
The sole beneficiary or beneficiaries of a trust
However, property owners who received a notice and believe an exemption applies must respond and provide supporting documentation. The exemption is not simply presumed.
Current filing deadlines:
August 21, 2026, for residential homes and condominiums
August 24, 2026, for cooperative units
The required evidence depends on the circumstances and may include a recent tax return, government-issued identification, voter records, leases, proof of rent payments, family-relationship documents, affidavits, or business-entity documents.
If the property does not qualify for an exemption, the surcharge is expected to appear on the property tax bill due January 1, 2027.
Three practical steps:
Review your DOF notice and market value.
Use the official eligibility tool to identify the correct documentation.
Submit the application well before the deadline.
Official guidance and eligibility tool: https://www.nyc.gov/site/finance/property/non-primary-residence-surcharge.page
General information only, not legal or tax advice. Please always confirm the latest requirements with NYC DOF.