Pied-à-Terre Tax Calculator
What a New York pied-à-terre surcharge could cost you — modeled on Senate Bill S44B, the closest-to-passage version of this proposal.i>
Estimate your exposure to New York City's proposed pied-à-terre tax — the annual surcharge on high-value second homes, investment units, and non-primary residences owned in NYC. Governor Hochul and Mayor Mamdani announced the new NYC pied-à-terre surcharge on April 15, 2026. Bill text has not yet been released. Until it is, the best blueprint for what the 2026 language will look like is S44B — Senator Brad Hoylman's 2019–2020 proposal, the most-amended and closest-to-passage version of a concept New York has been circling since 2014.
This calculator pulls your property directly from the NYC Department of Finance and runs it through S44B's rate tables, so you can see what a 2026 bill built on that blueprint might cost you.
Subsequent New York Times reporting suggests the 2026 framework will be looser-grained than S44B — three or four brackets starting at $5M, with rates calibrated to raise roughly $500 million a year. Treat the numbers below as the most-granular reference point available, not the final 2026 spec.
Important: S44B was never enacted. No pied-à-terre tax is currently in effect in New York, and the 2026 bill text may differ materially from S44B. This is a reference tool, not a tax bill. Not legal or tax advice.
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What is the NYC pied-à-terre tax?
"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.
On April 15, 2026, Governor Kathy Hochul and Mayor Zohran Mamdani announced an agreement to pursue a NYC pied-à-terre surcharge. Detailed bill text has not yet been released. According to subsequent New York Times reporting, the framework under discussion would apply the surcharge to properties worth at least $5 million, with rates rising in three — possibly four — brackets, calibrated to raise approximately $500 million a year for the City. Specific rates have not yet been set.
For the structural blueprint, analysts expect the 2026 language to draw heavily on Senate Bill S44B — Senator Brad Hoylman's 2019–2020 proposal, the most-amended and closest-to-passage version of a concept New York has been circling since 2014. S44B supplies the primary-residence test, exemption list, and Class 2 co-op allocation mechanics that the 2026 bill is expected to adopt. Where the 2026 framework is more specific than S44B (fewer brackets, LLC-focused enforcement), we call it out below.
Who pays the NYC pied-à-terre tax?
No one pays it today — the tax has been announced but not enacted. The S44B blueprint is structured as an additional property tax on non-primary residences. The test is applied property-by-property using the same primary-residence standard as New York's STAR exemption (RPTL §425). Critically, S44B does not exempt NYC income tax payers across all their properties — the test runs on each property individually.
If S44B were enacted and NYC passed the implementing local law, the surcharge would apply to a property only if:
- It is a Class 1 home (1–3 family, excluding vacant land) with a Department of Finance market value over $5,000,000; or
- It is a condominium or cooperative unit with an assessed value (or share-allocated AV, for co-ops) of $300,000 or more; and
- It is not covered by one of the statutory exemptions below.
S44B does not reach rental apartment buildings, commercial real estate, or vacant land.
Statutory exemptions under S44B
S44B would require any NYC implementing law to exempt:
- Primary residence of at least one owner. For co-owned properties, if at least one owner is domiciled there under the STAR test, the unit is exempt.
- Primary residence of a parent or child of an owner. The list is limited to parent and child — siblings, spouses, cousins, and in-laws are not statutorily covered.
- Full-time rental to a tenant whose primary residence it is. S44B sets no minimum month count; the test is "full-time" use as the tenant's primary home. Short-term rentals do not qualify.
- Appraisal under $5 million (Class 2 only). If a state-certified appraiser has valued the unit at under $5M within the prior three years, the surcharge does not apply, even if the DOF assessed value exceeds $300,000. This is the safety valve for condos and co-ops pushed over the AV floor by NYC's idiosyncratic assessment methodology rather than actual market value.
How much is the NYC pied-à-terre tax?
If the 2026 bill tracks S44B, the surcharge uses two different rate structures — a graduated table for Class 1 homes and a rate band for Class 2 condos and co-ops.
Class 1 (1–3 family homes): based on market value
| Market Value | Annual surcharge |
|---|---|
| $5,000,000 – $6,000,000 | 0.5% of excess over $5,000,000 |
| $6,000,000 – $10,000,000 | $5,000 + 1.0% of excess over $6,000,000 |
| $10,000,000 – $15,000,000 | $45,000 + 1.5% of excess over $10,000,000 |
| $15,000,000 – $20,000,000 | $120,000 + 2.0% of excess over $15,000,000 |
| $20,000,000 – $25,000,000 | $220,000 + 3.0% of excess over $20,000,000 |
| Over $25,000,000 | $370,000 + 4.0% of excess over $25,000,000 |
Like federal income tax, the table is graduated — only the excess in each band is taxed at that band's rate. "Market value" for Class 1 is the Department of Finance's comparable-sale-based determination, not a sale price.
Class 2 (condos and co-ops): $300K AV floor, 10%–13.5% rate band
For Class 2, S44B does not specify a graduated table. It sets only a floor and a rate band, delegating the specific schedule to NYC local law:
| Assessed Value | Annual surcharge (S44B) |
|---|---|
| Under $300,000 | $0 (below S44B floor) |
| $300,000 and above | Between 10% and 13.5% of the excess over $300,000 — NYC local law would pick the schedule within this band |
A worked example: a Manhattan condo with an assessed value of $490,000 would owe at least 10% and at most 13.5% of the $190,000 above the floor — roughly $19,000 to $25,650 per year. Because S44B leaves the specific schedule to NYC, the actual figure would depend on how NYC structures the implementing law.
How co-op shareholders are treated
Co-op buildings are assessed at the building level, not unit-by-unit. S44B addresses this by defining "assessed value attributable to a tenant-stockholder" as the shareholder's pro-rata slice of the building's AV, based on share count. The surcharge would be calculated on that allocated value and collected by the cooperative corporation, which would then remit it on behalf of the individual non-exempt shareholders.
What this means for Manhattan and Brooklyn luxury buyers
If the 2026 bill tracks S44B, the long-term math for non-primary-residence buyers changes meaningfully. A $15M Class 1 home held for 10 years at the S44B rates could accumulate over $750,000 in additional surcharge. A high-AV Class 2 unit could face $20,000–$50,000 annually.
Strategic considerations a buyer or owner may want to review:
- Primary-residence positioning. S44B applies property-by-property. If NYC is genuinely your domicile for the STAR test (vote, file state taxes, register vehicles there), your NYC property is exempt — but this is a facts-and-circumstances test, not a filing election.
- LLC ownership and documentation burden. The 2026 framework, as reported by the New York Times, would place the onus on LLCs to affirmatively establish that NYC is the beneficial owner's primary residence; if an LLC can't, the surcharge applies by default. Roughly 37% of Manhattan residential units are LLC-held, so this is the biggest structural change from how S44B would have worked for natural-person owners. Expect 2026 implementing rules to require explicit ownership disclosure and documentation for any LLC-held unit seeking the primary-residence exemption.
- Co-op share allocation. Because the calculation runs on your proportional share of the building's AV, two owners in the same building can face very different surcharge exposure.
- Appraisal escape hatch for Class 2. If your unit's DOF assessed value is above $300,000 but its actual market value is below $5M, a certified appraisal within the prior three years would keep you out of the tax.
- Rental structuring. S44B requires the rental to be "full-time" and the tenant's primary residence. Short-term rentals and vacant units between tenants do not qualify.
These strategies depend on how the 2026 bill ultimately reads. For a confidential review of your specific situation, contact Elevated Advisement — 110 Fifth Avenue, New York.
Frequently asked questions
Is the NYC pied-à-terre tax law yet?
No. A pied-à-terre surcharge has been proposed in Albany multiple times since 2014 — most recently as S44B in 2019–2020 — and has never been enacted. Governor Hochul and Mayor Mamdani announced on April 15, 2026, that they intend to pursue one, but detailed bill text has not been released as of this writing. Nothing is collected today.
How many tax brackets will the 2026 version have?
According to New York Times reporting, the 2026 framework under discussion uses three brackets — with a possible fourth — rather than S44B's six. The tiers being discussed start at $5M and step up at $15M and $25M, with a possible additional break at $10M–$15M. Specific rates have not yet been set; the formula is being calibrated to raise approximately $500 million a year. Our calculator uses S44B's full six-bracket table because it's the most granular published reference; the actual 2026 surcharge on any specific property could land meaningfully above or below our figure depending on where the final brackets and rates land.
How would the tax work if my home is owned by an LLC?
This is likely the most significant change from S44B. Per New York Times reporting, under the 2026 framework "the onus is likely to be on the limited liability company to prove that New York City is actually the owner's primary residence. If it can't, the property tax would apply." In practice, this means LLC-held units would be presumed non-primary-residence by default and the surcharge would attach unless the LLC affirmatively documents beneficial-owner primary residence. S44B had no LLC-specific rule because it relied on the STAR primary-residence test, which is designed for natural persons. Anyone holding a NYC second home (or primary home) through an LLC, a trust, or a foreign entity should plan on a meaningful new documentation burden if the bill passes in anything resembling the reported form.
Who is this tax actually aimed at?
Public framing from both the Governor and the Mayor points squarely at non-resident ultrawealthy buyers who use NYC real estate as a wealth-parking vehicle rather than as a home. The New York Times cites a 2023 Reinvent Albany analysis finding that roughly 37% of Manhattan residential units — more than 15,000 properties — are owned by limited liability companies where the beneficial owner is not publicly disclosed. Mayor Mamdani has specifically named hedge-fund founder Kenneth Griffin — whose NYC holdings include a $238M penthouse and subsequent Upper East Side purchases — as the archetype of the owner the tax is designed to reach. Practically, if you're a NYC primary resident, or your second home is moderately priced, or you rent it out full-time to a tenant who lives there, the tax as structured is not aimed at you.
If enacted, would the surcharge be one-time or annual?
S44B was structured as an annual surcharge that would apply for every fiscal year the property meets the non-exempt criteria. That is the opposite of NY's mansion tax, which is paid once at closing.
Does paying NYC income tax make me exempt on all my NYC properties?
No — at least not under S44B. S44B does not contain a blanket "income tax payer" shield. The primary-residence test is applied property-by-property, using the STAR exemption standard. A NYC income tax payer could still owe a surcharge on a second NYC property that isn't their primary residence.
Does the family exemption cover siblings or a spouse?
S44B's exemption language covers only "a parent or child of at least one owner." Siblings, spouses, cousins, and in-laws are not on that statutory list. In those situations, the exemption would need to come from somewhere else — for example, the owner's own primary residence exemption if that spouse is a co-owner.
Does the rental exemption require a 6-month lease?
S44B does not specify a month count. The text requires the unit be "rented on a full-time basis" to a tenant for whom the property is a primary residence. NYC's implementing local law could impose specific documentation requirements, but a fixed 6-month rule is not in S44B itself.
How does the $300,000 threshold relate to a $5 million condo?
For Class 2 condos and co-ops, NYC's Department of Finance typically assesses units at about 45% of a comparable-rental-based market value (which is itself usually below sale price). A $300,000 assessed value therefore roughly corresponds to multi-million-dollar Manhattan units, not $300,000 units. S44B also includes a safety valve: if a certified appraisal within the prior three years shows actual market value below $5M, the surcharge doesn't apply even when AV is above the floor.
How does the calculation work for a co-op?
Co-op buildings are assessed as a single property. S44B allocates the building's assessed value to each shareholder based on share percentage — called "assessed value attributable to a tenant-stockholder." The surcharge is calculated on that share and would be collected by the co-op corporation and remitted on behalf of the non-exempt shareholders.
Who actually enforces the tax if it passes?
Under S44B, the NYC Department of Finance would administer the surcharge using its existing property tax machinery — same billing cycle, same liens, same collection powers. S44B also requires owners to notify DOF when an exemption basis ceases (e.g., the primary-resident occupant moves out).