Pied-à-Terre Tax Calculator

What is the NYC pied-à-terre tax?

On May 27, 2026, the New York State Legislature passed a new annual surcharge on high-value second homes in New York City as part of the 2026-2027 state budget. The surcharge, codified as Article 30-C of the New York Tax Law (added by Part HH of the budget bill), is charged every fiscal year the property is held and no exemption applies, on top of the property taxes owners already pay. It applies to NYC fiscal years beginning July 1, 2026 and is set to expire on June 30, 2031 unless lawmakers vote to renew it.

"Pied-à-terre" is French for "foot on the ground." In NYC real estate, it refers to a secondary residence held by someone whose primary home is elsewhere, typically a Manhattan condo or co-op owned by a non-resident for occasional use.

The law is projected to raise about $500 million a year for the City and is expected to apply to roughly 10,000 homes, according to the Governor's office.

Who pays the NYC pied-à-terre tax?

The surcharge applies to owners whose primary residence is not in New York City. If a property is your primary home, or a full-time New Yorker owns it, it is not the target of the tax. Holding a property through a trust, LLC, partnership, or corporation does not sidestep the surcharge: the law looks through to a sole trust beneficiary, or a majority partner, shareholder, or member of an entity.

For non-residents, whether the surcharge applies depends on the property type and its NYC Department of Finance market value:

• Houses (1–3 family, Class 1): a Department of Finance market value of $5 million or more.
• Condos & co-ops (Class 2): in Phase 1 (the first two fiscal years), a Department of Finance market value of $1 million or more. Because the City assesses condos and co-ops far below their sale price, the Governor's office estimates a $1 million City valuation corresponds to roughly a $5 million sale price.

Exemptions. A property is treated as a primary residence (and not taxed) when it is the main home of:

• the owner;
• the owner's spouse, child, sibling, parent, grandparent, or grandchild; or
• a tenant under a bona fide arms-length lease of at least one year with a natural person.

Proof of a primary residence can include a New York State resident income tax return at the address, a STAR exemption, or a State homeowner tax credit. Two categories of property are also carved out entirely: new construction and conversions without a certificate of occupancy, and unsold sponsor units under an active offering plan.

How much is the NYC pied-à-terre tax?

The law applies in two phases. Phase 1 runs for the first two fiscal years (July 1, 2026 through June 30, 2028). Phase 2 begins July 1, 2028 and revalues condos and co-ops at market.

Phase 1 (FY 2026-2027 and FY 2027-2028) — Class 1 Houses

Phase 1 — Class 2 Condos & Co-ops

The condo and co-op rates look much higher because the City uses an income-based valuation for these units (capped under Real Property Tax Law section 581) that sits far below their actual sale price; the percentage is applied to that lower figure.

Phase 2 only changes things for condos and co-ops, not houses. From Phase 2 (fiscal year 2028-2029 onwards), the City moves condos and co-ops from that income-based valuation to a market-based valuation (comparable sales, without the section 581 restrictions), bringing valuations close to true market price. Condos and co-ops then shift from the Phase 1 condo schedule (4.0% / 5.25% / 6.5%) to the same house schedule (0.8%, 1.05%, or 1.3%). For houses, nothing changes between Phase 1 and Phase 2: same Department of Finance valuation, same rates.

How the calculator works

Answer three quick questions and the tool looks your property up in live NYC Department of Finance records, then estimates the surcharge:

• Residency & use: first it checks whether the property is exempt (a primary residence, a family member's home, or a genuine rental).
• Property lookup: it pulls the City's market value, and for co-ops your share of the building, straight from the Department of Finance.
• Surcharge estimate: it applies the law's bracket rates for your property type. Houses use one schedule; condos and co-ops use the higher Phase 1 schedule for the first two fiscal years, then switch to the house schedule from Phase 2.

The calculator estimates the pied-à-terre surcharge only. It does not calculate the separate mansion tax or transfer taxes due at purchase.

What this means for Manhattan luxury buyers

Now that the law has passed, the surcharge changes the long-term math for non-resident buyers. An annual charge, even a fraction of a percent, compounds meaningfully over a typical hold period. Worth considering:

• Primary-residence status: the surcharge turns entirely on whether New York City is your primary residence. Worth reviewing deliberately.
• Co-op share review: for co-ops, the relevant value is your unit's proportional share of the building's City valuation.
• Phase 2 timing: the rate that applies in Phase 1 (the first two fiscal years) is not the rate you will face once the City revalues condos and co-ops at open-market prices from July 1, 2028.
• Watch for your DOF notice. For fiscal year 2026-2027, the City must send notices to affected owners by August 30, 2026, with an opportunity to submit proof of primary residence.
• Co-op boards: a co-op building is a single tax lot, so the surcharge for a non-primary unit is added to the building's bill, not the individual shareholder's. Boards will likely need to amend the proprietary lease or add a special-assessment provision so primary-residence owners do not subsidize pied-à-terre owners.

For a confidential consultation, contact Elevated Advisement. 110 Fifth Avenue, New York.

Frequently asked questions