Last updated November 5, 2026. This tax is still in court and still changing. I'll keep this post current.
New York City's pied-à-terre tax is an annual surcharge on homes that aren't the owner's primary residence. Right now it applies to condos and co-ops the city values at $1 million or more, and to houses valued above $5 million. If you're buying a Manhattan apartment under $1 million, it doesn't apply to you. The city's value for an apartment usually runs well below what it sells for.
The text that started this post
Same Tampa client as my flip tax post. She's still browsing Manhattan apartments, still planning to buy in the next couple of years.
This time she sent me a New York Times headline. An appeals court had just cleared New York City to move forward with its pied-à-terre tax.
Her question was simple. Is she OK, since the place she's looking at is under $1 million?
My honest answer was that I wasn't sure, because it was changing every week. My quick read was yes, since she was under $1 million. But the rollout had been through a court fight, a pause, and a reversal in the span of a few months. Even people in the business were trying to keep up.
So I went and read up. Here's where things actually stand.
What is the NYC pied-à-terre tax?
It's an annual surcharge on New York City homes that aren't anyone's primary residence. The city calls it the non-primary residence property surcharge. Everyone else calls it the pied-à-terre tax, after the French term for a part-time place in the city.
New York State passed it in June 2026, and it took effect July 1, 2026. The first charges show up on the property tax bill due January 1, 2027.
Who has to pay it?
Owners of qualifying homes that aren't a primary residence. That's the whole point, so a Tampa buyer with a Manhattan second home is exactly who this is aimed at.
The city generally doesn't charge it if the home is the primary residence of the owner, an immediate family member, or a tenant on a lease of at least a year. The city looks at where you actually live, including whether you spend most of the year there. If you think you qualify for an exemption, you have to apply and prove it with documents like a tax return or ID.
How much is the pied-à-terre tax?
Through June 2028, the rates are based on the city's value for the property, not your purchase price:
Property | City value | Rate |
|---|---|---|
Condo or co-op | $1M to under $3M | 4.0% |
Condo or co-op | $3M to under $5M | 5.25% |
Condo or co-op | $5M and up | 6.5% |
House (1 to 3 family) | $5M to under $15M | 0.8% |
House (1 to 3 family) | $15M to under $25M | 1.05% |
House (1 to 3 family) | $25M and up | 1.3% |
One thing the city's own page doesn't spell out is whether each rate applies to the whole value or only the part inside that bracket. That's one of the questions a New York tax attorney should answer for your specific unit.
Does the pied-à-terre tax apply to an apartment under $1 million?
No. Condos and co-ops are only covered if the city values them at $1 million or more.
And here's the part most people miss. The city's value for an apartment is not what you pay for it. New York values condos and co-ops differently from houses, and its numbers usually run well below sale prices. The city's own page says an apartment it values at $1 million is generally comparable to a house valued at $5 million.
So if you're buying under $1 million, you're under the line. Plenty of apartments that sell for more than $1 million can still come in under it too. Before you buy, ask your attorney to look up the city's current value for the specific unit.
What's happening with the pied-à-terre tax in court?
As of November 5, 2026, the city is allowed to keep moving forward. But it's not settled.
Date | What happened |
|---|---|
Nov. 4, 2026 | A state appeals court reversed the Staten Island ruling and dismissed the homeowners' case, clearing the city to continue |
Sept. 2026 | A Staten Island judge ruled the rollout was flawed, saying it unfairly put the burden on owners to prove where they live. The city appealed |
Oct. 13, 2026 | Extended deadline to apply for an exemption for the 2026-27 tax year |
Summer 2026 | About 17,000 owners received notices that they might owe the tax |
July 1, 2026 | The tax took effect |
June 2026 | New York State enacted it |
Other lawsuits are still pending, including one arguing the tax unfairly targets people who live outside New York. So this could change again.
What changes in 2028?
Starting July 1, 2028, the threshold for condos and co-ops jumps to $5 million, the same as houses, and the rates drop to 0.8% to 1.3%. The city will also switch to valuing apartments based on comparable sales.
The law is set to expire June 30, 2031, unless the Legislature extends it.
For my client, this matters. If she buys in a couple of years, the rules she'll face are likely the 2028 version, not today's.
What should a Tampa buyer do right now?
If you're shopping for a Manhattan second home:
- Ask for the city's value on any unit you're serious about, not just the price.
- Talk to a New York tax attorney before you sign, especially above $1 million.
- Check the building's rules too. Many co-ops limit part-time use or subletting, which can matter as much as the tax.
- Watch the timing. A purchase in 2028 or later may fall under the higher $5 million threshold.
- Don't panic over headlines. This is one cost among several. My guide to NYC closing costs lays out the rest.
Where this leaves us
Here's the honest answer I'd give my client today. Under $1 million, you're fine. Above that, it depends on the city's number, not the price, and on where the courts and the Legislature land.
I'm not going to pretend this is settled. It isn't. What I can do is keep track of it so you don't have to, and update this post as it changes.
If you're in Tampa and looking at a place in New York, what's the part of this you're still unsure about?
Pied-à-terre tax FAQs
What is the NYC pied-à-terre tax?
It's an annual New York City surcharge on homes that aren't anyone's primary residence. It took effect July 1, 2026, and first appears on property tax bills due January 1, 2027.
Does the pied-à-terre tax apply to condos under $1 million?
No. Through June 2028, it applies only to condos and co-ops the city values at $1 million or more. The city's value usually runs below the sale price.
How much is the pied-à-terre tax on a condo or co-op?
Through June 2028, the rates are 4% for units the city values at $1 million to under $3 million, 5.25% from $3 million to under $5 million, and 6.5% at $5 million and up.
Is the pied-à-terre tax still happening after the court ruling?
Yes, for now. On November 4, 2026, a state appeals court reversed a lower-court ruling and let the city move forward. Other legal challenges are still pending.
What changes with the pied-à-terre tax in 2028?
Starting July 1, 2028, condos and co-ops are only covered at a value of $5 million or more, and rates drop to 0.8% to 1.3%. The law is set to expire in 2031.
About Kelly Burchill
Kelly Burchill is a Broker Associate at Compass, Florida and New York, and a third-generation South Tampa native. She specializes in South Tampa luxury real estate, off-market opportunities, and NYC-to-Tampa relocation. With more than a decade in real estate and a previous career in TV news, Kelly brings a journalist's instinct for research and storytelling to every transaction.
Compass, Tampa, FL · kellyburchill.com · 813.758.3292
Last updated November 5, 2026. This post is general information, not legal or tax advice. The pied-à-terre tax is still being litigated and its rules are still being written, so confirm the details for your situation with a New York tax attorney.
Sources
- NYC Department of Finance: Non-primary residence property surcharge
- NYC Rules: Surcharge on certain non-primary residences
- Holland & Knight: New York State enacts pied-à-terre tax
- Duane Morris: NYC imposes pied-à-terre tax
- CohnReznick: NYC pied-à-terre surcharge
- ABC7: Judge rules rollout flawed
- amNY: Appeals court allows city to implement second-home tax
