Pied-à-terre surcharge: does it affect your property?
A short, guided assessment of your situation under the New York pied-à-terre surcharge, enacted in the FY2027 state budget and effective July 1, 2026.
This tool
Walks you through the questions that determine whether the surcharge applies to your property.
Lands on a tailored result with documentation, next steps, and an optional Phase 2 exposure calculator.
Flags where the answer is genuinely uncertain pending Department of Finance rules.
Keeps everything in your browser — no data is collected or transmitted.
Not legal advice. For your specific situation, consult counsel. Department of Finance rules implementing the surcharge are not yet final; some answers may be refined as those rules are published.
Question 1 of 4
What type of property are we talking about?
A note on the first option: Most small condos and co-ops in NYC are Class 2 property, not Class 1 — including those in small buildings with as few as two to ten apartments. Class 1 condos are a narrow statutory category under RPTL § 1802(1)(b): originally built as condos, in a building of three stories or less, never previously on the assessment roll in another form of ownership. If you're not sure, check your property tax records (see the next screen). When in doubt, pick "Condominium apartment."
One narrow exception: A pre-1940 bungalow colony on cooperatively-owned land (RPTL § 1802(1)(c)) is excluded from the surcharge entirely under § 1351(b); if you believe your property may fall in that category, consult counsel.
Question 2 of 4
What is the Department of Finance market value for the property?
You can find this at the NYC property tax records search. Look for "market value" — not assessed value.
Enter your address or BBL (Borough-Block-Lot). On the property page, find the current fiscal year's "Market Value" — not "Assessed Value," which is lower and not what the surcharge uses.
Question 2 of 4
What is the Department of Finance market value for the unit?
You can find this at the NYC property tax records search. Look for "market value" — not assessed value. Note: this is typically well below sales value because of how state law requires DOF to value condos.
Enter your unit's address. On the property page, find the current fiscal year's "Market Value." Note this is typically far below sales value because of how state law (RPTL § 581) requires DOF to value condos using the income approach.
Question 2 of 4
Calculate your unit's imputed value
For co-ops, the value is calculated by multiplying the building's DOF market value by your fraction of total shares.
Enter the building's address. Find the current fiscal year's "Market Value" for the whole building. Your unit's share count is on your stock certificate or available from the managing agent; the total share count is in the co-op's offering plan or available from the corporation.
Enter values above to see your imputed value.
A note on mixed-use buildings: If your co-op building has significant commercial space (ground-floor retail, professional offices, etc.), the building's DOF market value reflects both the residential and commercial components — and the share-allocation formula distributes that combined value across the residential shareholders. In Phase 1, this is generally appropriate: the income approach captures the building's combined economics, and the commercial income flows back to the corporation in ways that benefit the shareholders. In Phase 2, comparable-sales valuation will capture the bundled value (what a buyer pays for the apartment, including the share of commercial economics) at the per-unit level, which raises a harder question about how the surcharge applies to residential shareholders in mixed-use buildings. If this applies to your building, the Phase 2 analysis may be a useful place to consult counsel.
Question 3 of 4
Who lives in the property?
"Lives there" means it's where they spend the majority of the year and treat as their permanent home.
Question 4 of 4
How would you describe your NYC ties?
Pick the option that best matches your situation. This tests whether DOF's standard proof pathway will likely work for you.
Question 4 of 4
Tell us about the lease
Question 4 of 4
How is the property owned?
Entity ownership structures need to be checked to confirm the family-occupancy pathway works.
Question 4 of 4
What best describes the property's current use?
Question 4 of 4
Tell us about the sale
Mid-year sales create timing complications because the surcharge is set by ownership and use on January 5 preceding the fiscal year.
Your assessment
Estimate your potential FY 2026-27 surcharge
Calculate the annual surcharge based on your current DOF value.
›
Potential FY 2026-27 surcharge calculator
Enter your FY 2026-27 DOF market value (or imputed value) above to see your estimated potential FY 2026-27 surcharge.
Estimate your Phase 2 exposure (FY 2028-29 onward)
Phase 2 switches condo and co-op valuation to comparable sales. Optional — uses estimates only.
›
Phase 2 exposure estimator
Beginning fiscal year 2028-29, the surcharge applies a uniform $5 million threshold (across all property types) with rates of 0.8% / 1.05% / 1.3%. Condos and co-ops will be valued by comparable sales rather than the current income approach.
DOF has not yet published the Phase 2 valuation methodology. The estimator below uses a range of plausible outcomes based on how aggressively DOF converges on actual sales values.
A note on Phase 2 for co-ops: The building remains the tax lot — co-ops always have one tax lot, not separate per-unit lots — so the surcharge will continue to be issued at the building level even in Phase 2. What changes is that DOF will value the cooperative using comparable sales rather than the income approach, which the statute requires to be done with reference to sales of comparable units. DOF has not published its Phase 2 valuation methodology yet, and the precise mechanism for translating per-unit sales comparables into building-level or per-unit surcharge assessments remains to be specified in rulemaking. The estimator below uses your unit's estimated sales value as a reasonable proxy for what DOF could assign in a per-unit valuation, but the actual surcharge could differ depending on DOF's methodology choices.
Would your apartment sell today for more than $5 million?
If you're not sure, your most recent purchase price is a reasonable anchor — adjust upward if you bought a long time ago and the market has appreciated.
Based on the value you indicated, your unit would not be subject to the Phase 2 surcharge under the basic threshold logic.
Phase 2 applies a $5 million threshold to all property types, valued using comparable sales. A unit worth less than $5 million on the market would fall below the threshold.
One caveat worth knowing about: DOF has not yet specified whether its Phase 2 methodology will revalue every co-op and condo unit comprehensively, or only those it has identified as potentially subject to the surcharge based on Phase 1 values. If DOF takes the comprehensive approach, units that current Phase 1 calculations do not flag could potentially be reached if their actual sales value clears $5 million. This is an open rulemaking question.