Property Tax Bills Benefits Assessments Tax Maps

Non-primary residence property surcharge

New York City has a new annual surcharge on certain properties, sometimes referred to as “pieds-à-terre," that are not used as the owner’s primary residence.

If you received a letter from the Department of Finance indicating that you may be subject to the surcharge and believe you are exempt, you must respond by the deadline date listed in the letter. You also must submit information showing that the property is not subject to the surcharge.

Submit your surcharge exemption application:

Residential homes and condos
Cooperative units (This page will be available soon.)

Use this eligibility guide to find out if you may be exempt from the surcharge.

Who is subject to the surcharge?

The surcharge applies to certain properties in New York City that are not used as a primary residence. For property tax years 2026-27 and 2027-28, the surcharge may apply to:

One-, two-, and three-family homes valued at more than $5 million
Condominium and cooperative units valued at $1 million or more

The surcharge will generally not apply if the property is used as a primary residence by the owner, a tenant or immediate family member of the owner, or one or more individuals with a majority interest in an entity that owns the property.

How much is the surcharge?

For property tax years 2026-27 and 2027-28, the surcharge will generally apply as follows:

Property type	DOF market value	Surcharge rate (% of market value)
One-, two-, and three-family homes	$5,000,000 – $15,000,000	0.8%
	$15,000,000 – $25,000,000	1.05%
	$25,000,000 or more	1.3%
Condominium and cooperative units	$1,000,000 – $3,000,000	4.0%
	$3,000,000 – $5,000,000	5.25%
	$5,000,000 or more	6.50%

How to apply for an exemption from the surcharge

Your property will not be subject to the surcharge if it is the primary residence of any of the following:

The owner of the property.
A tenant or subtenant.
One or more individuals who collectively hold a majority interest in the LLC, corporation, or partnership that owns the property.
An immediate family member of the owner or majority interest holder.
The sole beneficiary of a trust.

If you submit proof that your property meets any of the above criteria, you will not have to pay the surcharge.

Submit your surcharge exemption application for residential homes and condos or co-ops to provide the documentation described below. (The surcharge exemption application for cooperative units will be available soon.)

Documents required when applying for an exemption

The specific documents you must provide when applying for an exemption will depend on who is using the property as a primary residence.

Primary residence documents

All owners applying for an exemption from the surcharge will be asked to provide the following for each occupant you identify as using the property as a primary residence:

Most recently filed federal or state tax return

If a tax return is not available, you can provide any two of the following three items:

Driver’s license or other DMV-issued identification
Voter identification card
Other proof showing that the property is your primary residence

Tenant documents

If the property is the primary residence of a tenant or subtenant, you will be asked to provide the primary residence documents listed above, as well as:

A copy of the current lease and one additional rental document, such as a utility bill, proof of rent payment, or renter’s insurance policy, OR
A Tenant or Subtenant Affidavit and two additional rental documents

Immediate family member

If the property is the primary residence of an immediate family member of the owner or majority interest holder, you will be asked to provide the primary residence documents listed above, as well documentation proving the family relationship.

Birth certificate
Marriage certificate
Immediate Family Member Affidavit Form

Business entity

If the property is owned by a business entity (such as an LLC, corporation, trust, or partnership) and is used as a primary residence by a majority member, shareholder, or partner, you will be asked to provide the primary residence documents listed above.

In addition, you must provide:

Partnership agreement, trust agreement or affidavit, LLC operating agreement, or articles of incorporation
Majority Interest Affidavit

Property value challenges

If you believe the Department of Finance has incorrectly valued your property, you can file a challenge with the New York City Tax Commission. Visit www.nyc.gov/taxcommission for instructions and deadlines. Note that you can also ask the Tax Commission to review whether your property is exempt from the surcharge because it is used as a primary residence. If you choose to do so, you must also file a challenge to your property’s value, and you will not be able to apply for an exemption from the Department of Finance.