The Phase 1 rate schedule, July 1, 2026 to June 30, 2028
The official name is the non-primary residence surcharge. It is written into New York Tax Law Article 30-C, sections 1350 to 1356, and it applies to city fiscal years that start on or after July 1, 2026. In Phase 1 the thresholds are measured against the DOF market value of the property (the value the city assigns for property tax purposes), not against a sale price. DOF states each band as “or greater, but less than” the next band, so a value that lands exactly on a floor takes the higher rate.
Condominium and cooperative units
| DOF market value | Annual rate |
|---|---|
| $1,000,000 or greater, but less than $3,000,000 | 4.0% |
| $3,000,000 or greater, but less than $5,000,000 | 5.25% |
| $5,000,000 or greater | 6.5% |
Source: NYC Department of Finance, verified October 9, 2026.
One-, two- and three-family homes
| DOF market value | Annual rate |
|---|---|
| $5,000,000 or greater, but less than $15,000,000 | 0.8% |
| $15,000,000 or greater, but less than $25,000,000 | 1.05% |
| $25,000,000 or greater | 1.3% |
Source: NYC Department of Finance, verified October 9, 2026.
The two schedules look far apart but are built to match. DOF says that under state law a condo or co-op it values at $1,000,000 or more is generally comparable to a single-family home it values at $5,000,000 or more, because apartments are valued on a different method than houses.
What the rate costs at common values
Each figure below is the published rate multiplied by the full DOF market value. This is arithmetic on the rates above, not a DOF quote, and it assumes the owner has no exemption.
| Property type | DOF market value | Rate | Annual surcharge |
|---|---|---|---|
| Condo or co-op | $1,000,000 | 4.0% | $40,000 |
| Condo or co-op | $2,000,000 | 4.0% | $80,000 |
| Condo or co-op | $3,000,000 | 5.25% | $157,500 |
| Condo or co-op | $5,000,000 | 6.5% | $325,000 |
| 1-3 family home | $5,000,000 | 0.8% | $40,000 |
| 1-3 family home | $15,000,000 | 1.05% | $157,500 |
| 1-3 family home | $20,000,000 | 1.05% | $210,000 |
| 1-3 family home | $25,000,000 | 1.3% | $325,000 |
Because the new rate applies to the whole value, crossing a band is a cliff. A condo valued at $2,999,999 pays 4%, about $120,000 a year. At $3,000,000 it pays 5.25%, or $157,500, which is $37,500 more for one more dollar of valuation. I run this math on every second-home purchase I price, and the band a unit sits in matters more than the sale price.
What does your unit’s DOF value come to?
Look up the Department of Finance market value for your condo or co-op unit, free, and see which band it lands in before you decide to keep it, lease it or sell it.
Milton Coste | Licensed Real Estate Associate Broker | Keller Williams NYC | 917.416.7433
Every date in one table
| Date | What happened or happens |
|---|---|
| May 27, 2026 | Surcharge enacted in the state budget (Tax Law Article 30-C). DOF states the law took effect May 28, 2026. |
| July 1, 2026 | First city fiscal year the surcharge covers (2026-27). |
| July 14, 2026 | DOF final administrative rules adopted, effective the same day. |
| July 22, 2026 | DOF mailed letters to owners whose records did not establish a primary residence. |
| July 24, 2026 | DOF published the supplemental market value roll of homes, condos and co-op units. |
| August 21 and 24, 2026 | Original exemption deadlines (homes and condos on the 21st, co-ops on the 24th). |
| August 1 to August 26, 2026 | Deadline consolidated to September 18 for all notice recipients, then moved to October 6. |
| October 13, 2026 | Current exemption application deadline for homes, condos and co-op units. DOF page, verified October 9, 2026. |
| November 15, 2026 | Date before which the city told the court it would not invoice the tax, according to the homeowners’ lawyer. |
| January 1, 2027 | Property tax bill due date on which the first surcharge charges appear. |
| July 1, 2028 | Phase 2 scheduled to begin (see below). |
| June 30, 2031 | Article 30-C is repealed unless the legislature renews it. |
The lawsuit that produced a September 29 ruling has not changed these dates. The legal challenges page tracks that case, and the notice page walks through what to file.
Phase 2 is scheduled, not settled
From July 1, 2028 through June 30, 2031, the statute moves condos and co-ops to the same $5,000,000 threshold and the same 0.8%, 1.05% and 1.3% schedule that houses use today, measured under a new DOF assessed-value system that DOF has not finalized. Until it does, any estimate for 2028 and later is a scenario. Our unit lookup shows the Phase 1 number first and flags the Phase 2 sensitivity beside it.
What these numbers do not include
The surcharge is an annual charge on the property tax bill. The mansion tax is a different charge: a one-time tax the buyer pays at closing on any NYC residential purchase of $1,000,000 or more. The mansion tax calculator covers that tax. For an exemption decision, read the exemptions page.
Questions people ask
What is the NYC pied-a-terre tax rate?
For property tax years 2026-27 and 2027-28, condos and co-op units valued by the Department of Finance at $1,000,000 or more pay 4.0%, 5.25% or 6.5% of their full DOF market value depending on the band. One-, two- and three-family homes valued above $5,000,000 pay 0.8%, 1.05% or 1.3%.
Is the pied-a-terre tax based on the sale price?
No. The thresholds are measured against the DOF market value, which is the value the city assigns for property tax. It is not a sale price or a broker estimate.
When does the first pied-a-terre tax bill arrive?
If a property is subject to the surcharge, the charges appear on the property tax bill due January 1, 2027, according to the Department of Finance.
When does the pied-a-terre tax end?
Article 30-C of the New York Tax Law is repealed on June 30, 2031 unless the legislature renews it.
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.