Check Your Property
The threshold is your Department of Finance property-tax valuation, not your sale price or a broker estimate. It is printed on your Notice of Property Value and available on the Department of Finance property page for your address.
Estimates only. This is not tax or legal advice. The figure is a screening estimate, not a quote or a determination by the Department of Finance. Your bill depends on the valuation the Department carries for the property and on how the exemption is applied to your ownership structure. Confirm your situation with a New York attorney or your accountant before you file. Milton Coste, Licensed Real Estate Associate Broker, is not a tax adviser.
The next step
What the estimate above cannot know
The estimate uses the figure you typed in. The next part takes a person: what valuation the Department of Finance actually carries for your unit, what an annual surcharge does to resale in your building, and which comparable sales have moved since the notices went out. No cost and no obligation.
- The valuation the Department of Finance carries for your unit today, instead of one you have to guess at
- What an annual surcharge does to the buyer pool for your line and to resale
- The recent closed sales in your building, not a ZIP code average
Your information goes only to Milton. It is never sold or shared.
Received. Milton replies within the hour during business hours, same day otherwise.
Every figure is an estimate, not a quote, and none of this is tax or legal advice. Confirm your situation with your attorney or accountant before you file.
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The Phase 1 rate schedule
The surcharge was enacted on May 27, 2026 in the state budget. It applies to fiscal years starting July 1, 2026 and sunsets on June 30, 2031 unless it is renewed. Phase 1 runs from July 1, 2026 to June 30, 2028 and uses these bands. The rate applies to the full valuation, not only the portion above the threshold.
| Property type | Department of Finance valuation | Annual rate |
|---|---|---|
| 1-3 family homes | $5M to $15M | 0.8% |
| $15M to $25M | 1.05% | |
| $25M and up | 1.3% | |
| Condos and co-ops | $1M to $3M | 4.0% |
| $3M to $5M | 5.25% | |
| $5M and up | 6.5% |
Two worked examples from the statute's own arithmetic: a condo at exactly $1 million of valuation runs about $40,000 a year, and a non-primary home valued at $20 million pays 1.05% of the full $20 million, which is $210,000 a year. This tool treats a valuation sitting exactly on a boundary as falling in the higher band, which is how the $1 million condo example behaves. If your valuation lands on a boundary to the dollar, confirm the band with the Department of Finance.
Phase 2 is scheduled for July 1, 2028 to June 30, 2031, when condos and co-ops move to the same $5 million threshold and the 0.8 / 1.05 / 1.3 schedule under a new Department of Finance assessed-value system. That system is not finalized, so treat Phase 2 as scheduled rather than settled.
What the deadline actually asks of you
On July 14, 2026 the Department of Finance adopted its final administrative rules, effective the same day. On July 22 it mailed notices to owners whose records did not establish a primary residence, and on July 24 it published a supplemental market-value roll carrying the names and addresses of roughly 960,000 owners. The original deadlines of August 21 for homes and condos and August 24 for co-ops were replaced on August 1 by one deadline for all notice recipients: September 18, 2026.
Filing is electronic at nyc.gov/npsurcharge using the PIN printed on the notice. Accepted proof of primary residence includes a state or federal tax return showing the address as your permanent home, other primary-residence credits or exemptions, a driver's license, voter registration, utility bills, or a bona fide long-term lease. First charges appear on the property tax bill due January 1, 2027.
There is a lawsuit. File anyway.
O'Brien v. City of New York was filed on August 7, 2026 in Richmond County Supreme Court by three homeowners. It challenges the rollout, including the shifting of the burden onto owners and the privacy of the supplemental roll, rather than the constitutionality of the tax itself. REBNY did not sue; it objected to the valuation methodology at a July Department of Finance rulemaking hearing. None of that stops your September 18 clock, so file the exemption rather than waiting on the courts.
If the answer above was that the surcharge reaches your property, the next question is what to do about it. The sell or lease calculator prices all three options side by side: keep paying it, lease to a tenant who makes the unit their primary residence and claim the exemption, or sell and net out after commission, transfer taxes and any co-op flip tax.
The city projects roughly $500 million a year from the surcharge across roughly 10,000 properties, per administration estimates. Related reading: the notices and September deadline explainer, the pied-a-terre buying guide, the tenant primary-residence exemption if you rent the unit out, and the NYC mansion tax calculator for the one-time buyer tax at closing, which is a separate charge from this annual one.
Common questions
Who pays the NYC pied-a-terre tax?
The surcharge falls on NYC residential property that is not a primary residence. It is exempt if the property is the primary residence of the owner, a tenant or subtenant, an immediate family member (spouse, child, sibling, parent, grandparent, grandchild), the individuals who collectively hold a majority interest in an owning LLC, corporation or partnership when that entity holds the full fee or all of the co-op shares, or the sole beneficiary of a trust.
What is the deadline?
September 18, 2026. The Department of Finance mailed notices on July 22, 2026 to owners whose records did not establish a primary residence, and on August 1, 2026 the original August 21 and August 24 deadlines were extended to a single September 18, 2026 deadline for all notice recipients. Filing is electronic at nyc.gov/npsurcharge using the PIN printed on the notice.
How much is the pied-a-terre tax?
In Phase 1, from July 1, 2026 to June 30, 2028, a 1-3 family home is charged 0.8% from a $5 million Department of Finance valuation, 1.05% from $15 million and 1.3% from $25 million. A condo or co-op is charged 4.0% from a $1 million valuation, 5.25% from $3 million and 6.5% from $5 million. The rate applies to the full valuation, not only the amount above the threshold. A condo at exactly $1 million of valuation is about $40,000 a year, and a non-primary home valued at $20 million is 1.05% of the full $20 million, or $210,000 a year.
Is the threshold based on my sale price?
No. The Phase 1 thresholds use the Department of Finance property-tax valuation, not the sale price. The Department values condos and co-ops on a rental-income method that runs well below sale prices, and it has said a condo carrying a $1 million valuation is roughly comparable to a $5 million single-family home.
There is a lawsuit. Should I wait?
No. O'Brien v. City of New York was filed on August 7, 2026 in Richmond County Supreme Court by three homeowners, and it challenges the rollout, including the burden shifting and the privacy of the supplemental roll, rather than the constitutionality of the tax. File the exemption anyway rather than waiting on the courts.
What happens if the surcharge applies to me?
First charges appear on the property tax bill due January 1, 2027. The tax applies to fiscal years starting July 1, 2026 and sunsets June 30, 2031 unless it is renewed.
Deciding whether to keep it or sell it?
An annual surcharge changes the math on a second home, and it changes who will bid on it when you list. I price and sell across all five boroughs and the Hudson Valley, and I can tell you what your building looks like to a buyer now that the notices have landed.
Milton Coste | Licensed Real Estate Associate Broker | Keller Williams NYC | License #10301213304 | 360 Madison Avenue, 9th Floor, New York, NY 10017
Rates, thresholds, dates and exemptions on this page come from NY Tax Law Article 30-C, sections 1350 to 1356, and the New York City Department of Finance rollout as summarized in Milton's verified reference file. Figures are estimates, not quotes, and nothing here is tax or legal advice. Confirm your own situation with a New York attorney or your accountant. Department of Finance page: non-primary residence surcharge.