NYC pied-à-terre tax calculator (2026)
Starting July 1, 2026, New York City charges an annual surcharge on residential property that is not anyone’s primary residence: condos and co-ops with a city (DOF) market value of $1 million or more, and one- to three-family homes at $5 million or more. The rate applies to the property’s entire value — not just the amount over the threshold.
Check any address’s DOF market value
The thresholds use the Department of Finance’s market value — usually far below what the home would sell for. Look yours up:
The rates (July 1, 2026 – June 30, 2028)
Condos and co-ops (DOF market value of the unit):
| DOF market value | Annual surcharge on the full value |
|---|---|
| $1M – under $3M | 4.00% |
| $3M – under $5M | 5.25% |
| $5M and up | 6.50% |
One- to three-family homes:
| DOF market value | Annual surcharge on the full value |
|---|---|
| $5M – under $15M | 0.80% |
| $15M – under $25M | 1.05% |
| $25M and up | 1.30% |
Is the tax on the sale price or the assessed value?
Neither — it uses the DOF market value, the city’s own estimate that appears on your assessment notice and property record. For condos and co-ops that figure is derived from rental income data and typically runs far below open-market prices, so a unit that would sell for $2–3 million can sit under the $1 million DOF threshold. From July 1, 2028 the thresholds move to the city’s new assessed-value system and the tax narrows to properties valued at $5 million or more.
Is it charged on the whole value or just the amount over $1 million?
The whole value — it’s a cliff. A co-op with a DOF market value of $999,999 owes nothing; at $1.1 million the surcharge is 4% of the full $1.1 million — $44,000 a year.
Who is exempt?
- Primary residences — of the owner, or of a tenant or subtenant, an immediate family member (spouse, child, sibling, parent, grandparent, grandchild), a majority owner of the owning entity, or the sole beneficiary of a trust.
- Rented units — a unit rented out as the tenant’s primary residence is exempt, which shields most investor condos with year-round tenants.
I got a DOF notice — what do I do?
Notices went out July 22, 2026. If the property is someone’s primary residence, claim the exemption through the DOF’s online portal using the PIN on your notice — the deadline was extended to September 18, 2026. First bills for the 2026–27 year land January 1, 2027. The tax sunsets June 30, 2031 unless renewed.