The five paths
The property is not subject to the surcharge when it is the primary residence (the home a person actually lives in as their main home) of any of these:
| Path | Who must live there | What DOF asks for beyond the residence proof |
|---|---|---|
| Owner | The owner of the property | Residence proof only |
| Tenant or subtenant | A tenant or subtenant | Current lease plus one more rental document, or a signed affidavit plus two more rental documents |
| Entity owners | One or more individuals who together hold a majority interest in the LLC, corporation or partnership that owns it | Governing document plus the Majority Interest Affidavit |
| Immediate family | An immediate family member of the owner or majority interest holder | Birth certificate, marriage certificate or the Immediate Family Member Affidavit |
| Trust | The sole beneficiary or beneficiaries of a trust | Trust agreement or trustee affidavit |
Source: NYC Department of Finance, verified October 9, 2026. Immediate family means a spouse, child, sibling, parent, grandparent or grandchild.
The residence proof DOF asks for on every path
For each person you identify as living in the property as a primary residence, DOF asks for one of two things: the most recently filed federal or state tax return, or a driver’s license or other DMV-issued identification. If neither is available, you can send both a voter identification card and other proof that the property is the person’s primary residence.
Filing is electronic. Homes and condos use one DOF form and co-op units use another, and the notice page links both.
Not sure which path fits your unit?
Look up the unit’s DOF market value first. If the band is high, the choice between claiming residency, leasing under the exemption and selling is worth pricing before the deadline.
Milton Coste | Licensed Real Estate Associate Broker | Keller Williams NYC | 917.416.7433
The tenant path has four conditions, and all four are required
A lease does not carry the exemption by itself. All four of these must be true:
- The tenant or subtenant is a natural person (an individual), not a company.
- That person actually lives in the unit as their primary residence. An intention to move in does not count.
- The lease is bona fide and arm’s-length (a real rental between parties dealing at market terms). A family friend installed at a nominal rent fails this test even if the friend genuinely lives there.
- The term is no less than one year.
The rider that puts the proof requirements into the lease is covered in the primary residence rider guide. Any residence-documentation clause has to be applied identically to every applicant and ask no more than the tax rule requires. To price the lease route against a sale, use the sell or lease calculator.
Entities and trusts have one extra condition
An LLC, corporation or partnership qualifies only through the people who collectively hold a majority interest in it, and only when the entity holds the full fee interest in the property, or all the shares for a co-op unit. If the entity owns less than that, the majority-interest path is not available. DOF asks for the partnership agreement, LLC operating agreement or articles of incorporation, plus the Majority Interest Affidavit. A trust path rests on the sole beneficiary or beneficiaries living there.
Theories that do not work
- “I plan to move in.” The test is actual occupancy as a primary residence, not intent.
- “My unit sold for less than $1,000,000.” The threshold is the DOF market value, not a sale price or broker estimate.
- “A friend stays there for almost no rent.” A tenant exemption needs an arm’s-length lease of at least one year with a natural person living there.
- “My LLC owns it and I am a member.” The majority-interest path needs individuals who collectively hold a majority and an entity that holds the full fee or all co-op shares.
- “I will wait for the courts.” A September 29 ruling went against the city on process, and the city appealed. The exemption application deadline of October 13, 2026 is still posted. See the legal challenges page.
- “My unit is on the roll, so I owe.” DOF says listing on the supplemental roll does not mean a property is subject to the surcharge.
If DOF denies the exemption
DOF sends a determination letter and an email. If the application is denied, the owner can apply to the NYC Tax Commission to appeal. A Tax Commission value challenge can also ask the Commission to decide the residency question, but only when the owner is challenging the value too. If you ask the Commission to decide residency, DOF will not consider any submission to DOF for the same property and will defer to the Commission’s decision. Choose one forum on purpose.
Questions people ask
Who is exempt from the NYC pied-a-terre tax?
A property is not subject to the surcharge if it is the primary residence of the owner, a tenant or subtenant, an immediate family member of the owner, individuals who collectively hold a majority interest in the owning LLC, corporation or partnership, or the sole beneficiary of a trust.
Does renting my condo to a tenant exempt it from the pied-a-terre tax?
It can, if the tenant is a natural person who actually lives there as a primary residence under a bona fide, arm’s-length lease of at least one year. All four conditions must hold.
What documents does the Department of Finance accept as proof of primary residence?
The most recently filed federal or state tax return, or a driver’s license or other DMV-issued ID, for each occupant. If neither is available, a voter identification card plus other proof. Tenants, family members and entities add further documents.
What if the Department of Finance denies my exemption?
You can apply to the NYC Tax Commission to appeal the determination.
Ready to see your own number?
The lookup is free and shows the figure on screen first. If you want to talk through keeping, leasing or selling, call or message me.
Milton Coste | Licensed Real Estate Associate Broker | Keller Williams NYC | 917.416.7433
More on the NYC pied-a-terre tax
This page is educational and is not legal or tax advice. Rates, thresholds and dates come from NY Tax Law Article 30-C (text of the statute) and the NYC Department of Finance (non-primary residence surcharge page), checked October 9, 2026. Confirm your own situation with a New York attorney or your accountant. Milton Coste, Licensed Real Estate Associate Broker, Keller Williams NYC, 360 Madison Avenue, 9th Floor, New York, NY 10017.