The NYC Pied-à-Terre Tax is Back in Effect—What You Need to Know

New York City's controversial new "pied-à-terre tax" on luxury second homes has officially been reinstated after a brief judicial pause. If you own a non-primary residence in the city, here is what you need to know about the rollout, the recent legal drama, and the fast-approaching deadline to file for an exemption.

The Tax is Back On

Originally effective July 1, 2026, the tax targets non-primary residences in NYC to help close the city's budget gap. Notices were sent out in late July to approximately 17,000 property owners. Following a lawsuit by homeowners, a Staten Island judge issued an emergency pause on August 10. However, on August 13, a state appeals judge lifted those restrictions, allowing the Department of Finance to resume the rollout while the litigation continues.

Who is Affected?

For the 2026-2027 tax years, the surcharge applies to:

• One-, two-, and three-family homes with a Department of Finance (DOF) market value of $5 million or more.
• Condominiums and cooperative units with a DOF market value of $1 million or more.

New Exemption Deadline: September 18, 2026

If your property is your primary residence, or it is leased to a qualifying tenant for at least a year, you may be exempt. The mayor recently extended the deadline to apply for an exemption. You now have until September 18, 2026, to submit your application.

As your real estate expert, I am keeping a close eye on this evolving situation. Reach out today to discuss how these market shifts might impact your property's value or your future real estate goals!