Surcharge Appeal

The New York City Non-Primary Residence Surcharge Information Page

(Last updated: July 15, 2026 1.6)

New York City (NYC) has introduced a new annual surcharge on certain properties, sometimes referred to as “pied-a-terre" tax, that are not used as the Owner’s primary residence. The NYC Department of Finance (DOF) sends letters/notices (Surcharge Notice) to Property Owners that may be impacted by the surcharge, and DOF’s Determinations can be appealed by timely filing TC107 Applications at the Tax Commission.

If you received a Surcharge Notice from DOF advising you that you may be subject to the surcharge because your Property/unit is not a primary residence, you can appeal the Determination of primary residency directly to the DOF. See the DOF website at www.nyc.gov/npsurcharge  for more information.

Appeals to the Tax Commission must be timely made on a completed FORM TC107 which can be downloaded with instructions. Please be sure to read all form instructions, properly complete the form, and submit any documentation that supports your claims with your Application.

More information about the Non-Primary Residence Surcharge and how to appeal it is printed below. Please note that the information below is for informational purposes only and is not to be considered as legal advice.

Filing Deadlines  

For the 2026/27 and 2027/28 tax years, the deadline to file Non-Primary Residence Surcharge Appeals with the Tax Commission is March 1, 2027 for properties in Tax Class Two and March 15, 2027 for properties in Tax Class One, if you appeal both the DOF’s primary residence and Market Value Determinations to the Tax Commission at the same time. If you initially appeal the DOF’s residency Determination to the DOF, you may appeal its final Determination to the Tax Commission by the applicable March 1 or March 15 deadline, or within 30 days of the date on the final Determination notice sent from the DOF, whichever is later. Note however, any appeal of your Market Value must still be filed by the applicable March 1, 2027 or March 15, 2027 deadline listed above.  If you do not appeal the DOF’s residency Determination you may still challenge your Market Value at the Tax Commission by the applicable March 1, 2027 or March 15, 2027 deadline.

Questions?

Questions related to Tax Commission Surcharge appeals only can be emailed to:

 TCSurchargeAppeal@oata.nyc.gov

Please allow five days for a reply email. Note that questions sent to the Tax Commission do not extend filing deadlines and Tax Commission staff is not permitted to provide legal advice.

See also, the DOF website at www.nyc.gov/npsurcharge for information.

 

Key Definition Summaries

Below is a list of the most commonly used definitions related to Non-Primary Residence Surcharge Appeals.

 

Excessive: A Market Value is “Excessive” if it exceeds the Full Value of the Property or co‑op unit.

Full Value: For Class One Properties: Is the price for which a Property would ordinarily sell on the open market, based on its condition, ownership and use as of January 5th. Your Property has a Full Value even if you do not plan to sell it. Full Value estimates may be based on recent sales, actual or imputed income and operating expenses, construction costs, or a combination of these, for your Property and similar properties in the area.

For Class Two Properties: Full Value is determined using an approach based on income capitalization of comparable rental properties. In the case of a co-op unit, the portion of the co-op building’s Full Value attributable to a co-op unit is imputed to such unit based on the portion of the shares in the co-op building that represent an interest in such co-op unit.

Covered Owner: Only Covered Owners can establish primary residency. Generally speaking, a Covered Owner is 1) an owner of real Property classified as class one Property; 2) a tenant – stockholder of a co-op corporation whose title to a portion of real Property held by such a corporation is represented by shares of stock in such a corporation; or 3) an owner of a residential condominium dwelling unit. A covered owner includes a sole beneficiary or beneficiaries of trusts when Property or co-op shares are held in trust, and individuals who collectively hold a majority interest in a limited liability company (LLC), corporation, or partnership that owns the Property.

Owner:  An owner or owners of real property classified as class one property; a tenant-stockholder of a cooperative corporation whose title to a portion of real property held by such corporation is represented by shares of stock in such corporation, or such corporation; or an owner or owners of a residential condominium dwelling unit.

Primary Residence: The use of a property or co-op unit, as of January 5th in the calendar year immediately before the fiscal year when the surcharge is applied, as a primary residence of (i) a Covered Owner, or an immediate family member of a Covered Owner; or (ii) a tenant or sub-tenant under a real, legitimate lease negotiated at arms’ length and with a term of at least a year. An immediate family member includes a spouse, child, sibling, parent, grandparent, or grandchild.

A determination of primary residence is made based on documentation including: (i) a state or federal income tax return indicating that the property or co-op unit was a Covered Owner’s, immediate family member’s, tenant’s, or subtenant’s permanent home address; (ii) that the Covered Owner, immediate family member, tenant, or subtenant received other tax credits or exemptions as a primary resident of the property or co-op unit; (iii) proof that the Covered Owner, immediate family member, tenant, or subtenant occupied the property or co-op unit for a majority of days during the immediately prior calendar year; and (iv) other documents previously submitted to the City indicating that the property or co-op unit is the primary residence of the Covered Owner, immediate family member, tenant, or subtenant.

Unlawful: A Market Value is “Unlawful” if the Property or co-op unit is not subject to the surcharge; the Property or co-op unit is entirely outside NYC; the Property or co-op unit cannot be identified from the assessment roll (co‑op units are fine if identified by street address + unit number); or the assessment was made by someone without authority.

Who May Appeal A DOF Determination That A Property/Unit Is Not A Primary Residence Owners —Natural persons and legal entities with an Ownership interest. See TC107 Instructions for more information
Examples:
Tax Class 1 Homeowners — Individuals who own 1–3 family homes classified as Class 1
Condominium Unit Owners — Owners of residential condominium units
Co-op Unit Owners/shareholders — Tenant‑shareholders in cooperative corporation
Cooperative Corporation — A Cooperative Corporation with one or more cooperative residential units
Beneficial Owners of trusts — When Property or co‑op shares are held in trust and the beneficial Owner

What Can Be Appealed at the Tax Commission
Examples:
DOF’s initial primary residence Determination — Owners may contest the DOF’s initial Determination that the Property is not a primary residence (when also challenging the Market Value at the same time)
DOF’s final primary residence Determination — Owners may contest the DOF’s final Determination (i.e. Determination after you applied to DOF for an exemption from the Surcharge) that the Property is not a primary residence was erroneous
DOF’s Market Value Determination — Owners may challenge the Market Value DOF used to determine surcharge amount (without challenging DOF’s primary residence Determination)
Imposition of the surcharge — Owners may challenge whether the surcharge is properly applied because the correct Market Value of the Property is below the applicable Market Value threshold
Covered vs. excluded Property status — Whether the Property is not a Covered Property and/or should have been categorized as an excluded Property
The Property cannot be identified from the assessment roll (co‑op units are fine if identified by street address + unit number)

For an official list of documents that may be submitted to the Tax Commission in support of a Primary Residence Claim, please see DOF website at: Documents required when requesting an exemption. Although this is the DOF’s listing, The Tax Commission requires/accepts and considers the same documents.

Claim-Related Documents	Examples of Acceptable Documentation
Certification of primary residence	A sworn certification that the Property “is a primary residence” of the Owner or qualifying family member (i.e., an Owner’s spouse, child, sibling, parent, grandparent, or grandchild). See, Documents required when requesting an exemption.This the DOF’s listing. The Tax Commission accepts the same documents.
Owner’s NY State resident income tax return showing the Property address	Proof that the Owner “provided the address… as such Covered Owner’s permanent home address on the New York state resident income tax return.” See, Documents required when requesting an exemption.This the DOF’s listing. The Tax Commission accepts the same documents.
Owner’s STAR exemption or STAR credit documentation	Proof that the Property received a STAR exemption or credit in the prior year is explicitly listed as acceptable evidence of primary residence. See, Documents required when requesting an exemption.This the DOF’s listing. The Tax Commission accepts the same documents.
Occupancy documentation related to primary residence Determination	To show majority of year occupancy: utility bills, lease agreements, sublease documentation (if applicable), or other DOF accepted evidence. See, Documents required when requesting an exemption.This the DOF’s listing. The Tax Commission accepts the same documents.
Bona fide lease agreement (if relying on tenant occupancy as primary residence)	Required when the Owner claims the unit is a primary residence of a lessee; must be an arm’s length lease of at least one year. See, Documents required when requesting an exemption.This the DOF’s listing. The Tax Commission accepts the same documents.
Value evidence-generally	Appraisals, comparable sales, or valuation analyses. Under the law, DOF’s Market Value Determinations are presumed to be correct. The burden is on the Applicant to prove the claims in the Application. You need not prove that DOF’s methodology or calculations used to make the assessment were wrong and offering such proof will not necessarily establish your claimed Full Value.
Proof of Ownership status	Deed, stock certificate (coop), trust documents, or entity Ownership records to establish standing as a “Covered Owner.”
Evidence of excluded Property status	Certificate of occupancy status, offering plan status, or proof that the unit remains unsold by the sponsor.
Evidence of DOF procedural error	Documents showing incorrect valuation date.