For many who own a “second home” in New York City, Christmas in July brought with it a bag of coal this year. Effective beginning July 1, 2026, NYC is adding a property tax surcharge, commonly referred to as a pieds-à-terre tax, for nonresidents who own a home, co-op, or condo in NYC exceeding certain market values. The published tax rates for the NYC fiscal year ending 2027 and 2028 are as follows:
Property type |
DOF market value |
Surcharge rate(% of market value) |
| One-, two-, and three-family homes | $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% | |
| Condominium and cooperative units | $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 | 6.50% |
Note that the tax is based upon the “market value” of the property as determined by the Department of Finance (DOF). At this time, the DOF market values for co-ops and condos are artificially low due to statutorily required methods to value such units. However, beginning in NYC fiscal year ending 2029, the DOF will be allowed to use the “comparable sales” method to determine the market value, so co-op and condo owners could see significant increases in their market value on their property tax bills in 2029. It’s also worth noting that for co-ops and condos the thresholds will increase and the tax rates will decrease to mirror the 1-3 family homes (as presented above) at that time.
The following exemptions may apply to certain home, condo, or co-op owners:
- Primary residence exemption – property is the primary residence of the property owner
- Tenant exemption – property is the primary residence of a tenant or subtenant
- Immediately family member exemption – property is the primary residence of the property owner’s spouse, parent, child, sibling, grandparent, or grandchild
- Business entity exemption – property is the primary residence of a majority member, shareholder, or partner of the entity that owns the property
URGENT NOTE: If one of the above exemptions applies to your property, you must take action immediately to apply for said exemptions. Each application must include certain documents which may include recent tax returns, lease agreements, operating agreements, and proof of family relationships. Furthermore, for all exemptions except the primary residence exception, the application is required to include a signed and notarized affidavit to be considered. The NYC Department of Finance website has helpful references including a list of required information.
To make things more chaotic, the deadline to apply for any exemptions is fast approaching. Complete exemption applications must be submitted by:
- August 21, 2026 for residential home and condo owners
- August 24, 2026 for co-op owners
The last piece of coal under the tree is that though NYC has begun to send out letters to affected property owners, notifications may continue to roll out through August 30, 2026, after the exemption application deadline.
Therefore, don’t wait for a letter from NYC before you act. If you own property that you believe might be subject to this new property tax surcharge, yet an exemption applies, now is the time to begin gathering the required information to meet the fast-approaching application deadlines.
For your reference, the DOF has recently issued a list of all properties that may be subject to the tax on this webpage (navigate to the “Supplemental Market Value Roll – July 2026” section). Though properties outside of this list may be subject, if you have a unit or own a house on these lists it’s best to prepare now to prepare to apply for an exemption (if applicable).
Please contact your WG advisor if you have any questions or need assistance.
