NYC Pied-a-Terre Tax Glossary: Plain-English Definitions

NYC Pied-a-Terre Tax Glossary

Sixteen terms decide whether a New York City owner pays the pied-a-terre tax, and three of them, DOF market value, assessed value and sale price, are routinely mixed up. Each definition below is written to be read on its own, and the figures come from the Department of Finance and Tax Law Article 30-C. I explain these to clients in the first five minutes of any second-home conversation, because the wrong one sends people to the wrong number.

Updated October 9, 2026

The three values that get confused

DOF market value is the Department of Finance’s figure for a property and the one the surcharge uses. Assessed value is the figure a tax rate is applied to, and it is a different number. Sale price is what a buyer paid. A condo that DOF values at $1,000,000 is covered by the surcharge in Phase 1 whatever it sold for. DOF says a condo or co-op it values at $1,000,000 is generally comparable to a single-family home it values at $5,000,000 or more.

The full list follows. Rates and dates are on the rates and deadlines page.

See your own DOF market value.

The lookup returns the Department of Finance market value for a condo or co-op unit, the band it falls in and the annual surcharge, with no form to fill out first.

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Milton Coste | Licensed Real Estate Associate Broker | Keller Williams NYC | 917.416.7433

The terms

Non-primary residence surcharge

The official name of the pied-a-terre tax. It is an annual charge on certain high-value New York City homes that are not the primary residence of the owner or another qualifying occupant, written into NY Tax Law Article 30-C.

Pied-a-terre

A home kept for part-time use, usually a second home. The tax uses the term loosely: what matters under the law is whether the property is anyone’s primary residence, not how often it is used.

Primary residence

The home a person actually lives in as their main home. For the exemption, DOF asks for a recent tax return or a driver’s license showing the address, with a voter card and other proof as the fallback.

DOF market value

The value the Department of Finance assigns to a property for property tax. It is the number the surcharge thresholds and rates use. For condos and co-ops it runs below what a unit would sell for, because DOF values them with a rental-income method.

Sale price

What a buyer actually paid. It does not set the surcharge. A unit can sell for far more than its DOF market value and still sit in a lower band.

Assessed value

The figure a tax rate is applied to, which is not the same as market value. Phase 2 of the surcharge is scheduled to use a new DOF assessed-value system that has not been finalized.

Supplemental market value roll

The list DOF published on July 24, 2026 of homes, condos, co-op properties and individual co-op units that may be subject to the surcharge. Appearing on it does not mean a property is subject.

Cliff (flat rate on full value)

The rate for a band applies to the whole DOF market value, not only the part above the band’s floor. A small rise in value that crosses a floor raises the whole bill.

Phase 1 and Phase 2

Phase 1 runs July 1, 2026 to June 30, 2028 with a $1,000,000 threshold for condos and co-ops and $5,000,000 for homes. Phase 2, scheduled for July 1, 2028 to June 30, 2031, moves condos and co-ops to the $5,000,000 threshold under a DOF system not yet finalized.

Exemption application

The electronic filing in which an owner shows DOF that the property is a primary residence of a qualifying person. The deadline is October 13, 2026 for homes, condos and co-op units.

The security number printed on the DOF letter, used to open the exemption application. DOF says to call 311 to request one.

Majority interest

Ownership by one or more individuals who together hold more than half of an LLC, corporation or partnership. It is the route to an exemption for entity-owned homes, and only works when the entity holds the full fee or all co-op shares.

Immediate family member

A spouse, child, sibling, parent, grandparent or grandchild of the owner or majority interest holder.

NYC Tax Commission

The city body that hears property value challenges and appeals of DOF surcharge denials. If you ask it to decide residency, DOF defers to its decision.

Determination letter

The letter and email DOF sends after reviewing an exemption application, saying whether the exemption is approved.

Mansion tax

A separate, one-time tax paid by the buyer at closing on NYC residential purchases of $1,000,000 or more, with a rate of 1.00% to 3.90% of the whole price. It is not part of the surcharge.

Questions people ask

What is the difference between DOF market value and sale price?

DOF market value is the figure the Department of Finance assigns for property tax and the surcharge thresholds. Sale price is what a buyer paid. The surcharge uses DOF market value.

Is DOF market value the same as assessed value?

No. Assessed value is the figure a tax rate is applied to. Phase 2 of the surcharge is scheduled to use a new DOF assessed-value system that has not been finalized.

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