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If you own a New York City apartment you don’t live in full-time — or you’ve been thinking about buying one — there’s a new line item to know about. As of July 1, 2026, New York charges an annual surcharge on high-value NYC homes that aren’t anyone’s primary residence. It’s officially called the “City Surcharge on Property That Does Not Serve as a Primary Residence,” but everyone calls it the pied-à-terre tax.
I’ve read the legislation and the City’s implementing rules so you don’t have to. Here’s the short version — and at the end, a free calculator that estimates what it could mean for your specific situation.
The One-Minute Version
- It’s an annual tax — not a one-time closing cost like the mansion tax. It’s billed with your property taxes, on top of them.
- It applies to 1–3 family houses, condos, and co-ops in NYC that are not the primary residence of the owner, an immediate family member, or a tenant with a lease of at least a year.
- It runs five years: July 1, 2026 through June 30, 2031, unless Albany extends it. The first payment comes due January 1, 2027.
- An empty apartment is not exempt — vacancy doesn’t get you out of it.
The Rates — And The Detail Everyone Gets Wrong
Through June 2028 (“Phase 1”), houses and apartments are taxed on different tracks. Townhouses (1–3 family) are taxed on the City’s market value starting at $5M, at 0.8%–1.3%. Condos and co-ops are taxed on the City’s DOF value — an income-based number — starting at $1M, at 4%–6.5%. From July 2028 (“Phase 2”), everything moves to sales-based market value with a $5M threshold and the 0.8%–1.3% rates.
The detail everyone gets wrong: for condos and co-ops in Phase 1, the tax runs on the City’s Department of Finance value — usually just a small fraction of what your apartment would sell for. A condo that would trade for $3M can carry a City value under $1M and owe nothing at all. Never assume you owe this tax until you’ve looked up your actual DOF value — my guide shows you how, step by step.
Real Numbers
- A Brooklyn townhouse kept as a second home, City value $5,002,000 → 0.8% → about $40,000 a year.
- A Central Park West condo worth well over $2M on the market, City DOF value $909,389 → under the $1M threshold → $0.
- A Park Avenue co-op unit holding 720 of its building’s 47,250 shares → an imputed value around $1.47M → 4% → about $58,800 a year.
If This Might Apply To You: Four Moves To Make Now
- Look up your City value. It’s free on the NYC Department of Finance site, and it’s the single number that determines whether you owe anything. My guide walks you through it.
- Watch your mail (and email). The City sends determination notices — the first round by August 30, 2026 — and you have just 30 days to appeal with proof if they’ve classified your home incorrectly.
- Own through an LLC or trust? Call your tax advisor. The rules for entities are strict, and getting them wrong can make an otherwise-exempt home taxable.
- Renting it out can change the math. A bona fide lease of a year or more to a full-time tenant makes the home exempt — worth weighing against the tax bill.
Estimate Your Bill In 30 Seconds
I built a free, plain-English guide with an interactive calculator: pick your property type, enter your City value (there’s even a helper for co-op owners to work out their unit’s share of the building), and see your estimated annual bill instantly — plus the full rate tables, exemptions, appeals process, and sources.
Try The Free Pied-à-Terre Tax Calculator
Weighing a pied-à-terre purchase, or wondering whether to rent out a second home? Reach out — I’m happy to walk through your specific numbers.
This post is general information, not legal, tax, or financial advice. Based on NY Tax Law Article 30-C as enacted; details current as of July 2026 and subject to change. Consult a qualified tax professional about your specific situation.