Who has to pay the pied-à-terre tax?

You owe New York City's pied-à-terre tax only if you own a one- to three-family home the Department of Finance values above $5 million, or a condo or co-op unit it values at $1 million or more, and no owner, family member, or tenant lives there as a primary residence. The first charge appears on the property tax bill due January 1, 2027.

What counts as a primary residence?

A property is exempt when someone lives there as their main home.

Does renting out your apartment avoid the tax?

Renting can qualify a home, but only when the tenant lives there as a primary residence. DOF asks for a lease plus one rental document, such as a utility bill or proof of rent payment, or a tenant affidavit plus two rental documents.

What did the court ruling change?

The ruling changed how the city must identify owners, not whether the tax exists. On September 29, 2026, Justice Wayne M. Ozzi of the State Supreme Court in Richmond County ruled in O'Brien v. City of New York that DOF's notices to about 17,000 owners were arbitrary and capricious and ordered the city to redo the process, according to Day Pitney.

When is the first bill due, and what if you missed the deadline?

The first surcharge appears on the property tax bill due January 1, 2027, according to DOF, and Withum reports DOF expected to issue those bills around November 15, 2026. Regular property tax abatements and exemptions do not reduce the surcharge, according to Dechert.

What changes for condos and co-ops in 2028?

Starting July 1, 2028, condos and co-ops move to the same $5 million threshold and 0.8% to 1.3% rates as one- to three-family homes, according to Dechert, using a new DOF model based on comparable sales that Dechert expects to raise values. FOX 5 NY estimated the same $18.5 million condo would then owe about $194,250 a year.

What is the pied-à-terre tax in NYC?

It is an annual surcharge on high-value New York City homes that are not anyone's primary residence. It applies to one- to three-family homes the Department of Finance values above $5 million and condo or co-op units it values at $1 million or more, at 0.8% to 6.5% of that value.

Is my NYC apartment exempt if I rent it out?

It can be. The exemption applies when a tenant or subtenant lives there as a primary residence. The Department of Finance asks for a lease and one rental document, or a tenant affidavit and two rental documents. A month-to-month tenancy can qualify, according to Katten, but an apartment left empty while you look for a tenant will likely be taxed.

What if I missed the October 13 exemption deadline?

The Department of Finance says owners who are denied, or who dispute the value it assigned, can go to the NYC Tax Commission, which can decide primary residency together with a value challenge. Because the right route depends on the property and the paperwork, talk with a tax attorney or CPA soon, before the January 1, 2027 bill comes due.

NYC Pied-à-Terre Tax: Do You Owe It on Your Second Home?

Who owes NYC’s pied-à-terre tax, who is exempt, what the court ruling changed, and when the first bill is due on January 1, 2027. A plain-English guide.

Manhattan co-op and condo

Do You Owe NYC’s Pied-à-Terre Tax on Your Second Home?

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