---
title: "NYC Second-Home Tax 2026: Rates, Exemptions & Calculator"
description: "See NYC second-home tax rates, DOF market value rules, what a notice or public-roll listing means, exemptions, deadlines, appeals and a calculator."
url: "https://realestaterebatesnewyork.com/guides/nyc-second-home-tax"
source: "Real Estate Rebate Team"
---

Real Estate Rebate Team


Licensed Broker NY & NJ · License: 10491211335


## What the NYC second-home tax actually is


New York City's Second-Home Annual Tax is the formal name often used for the new **non-primary residence surcharge**. Many buyers will also hear it called a pied-a-terre tax.

The surcharge applies to certain high-value residential properties that are not used as a qualifying primary residence. It is administered by the NYC Department of Finance and sits on top of the regular property tax bill.

Three details matter most. The surcharge attaches to the property, not just to the owner. It is based on the property's status as of **January 5**. It is also not a vacancy tax. A home used every weekend may still be subject if it is nobody's primary residence, while a temporarily empty home may still qualify for an exemption.


## When the surcharge applies


The surcharge began on **July 1, 2026** and is scheduled to remain in effect through **June 30, 2031**. The first payment is due with the property tax bill due January 1, 2027.

The rules change after the first two tax years:
- **Phase 1, July 1, 2026 through June 30, 2028:** one-, two- and three-family homes use a $5 million threshold. Most condos and co-ops use a $1 million threshold.
- **Phase 2, July 1, 2028 through June 30, 2031:** every covered property type moves to a $5 million threshold. Condos and co-ops are also expected to move to a comparable-sales valuation method, but DOF has not yet finalized that process.


That second phase matters because today's condo and co-op calculation should not simply be carried forward into 2028.


## Which properties are covered


The surcharge may apply to one-, two- and three-family homes, condominium units and cooperative apartments that meet the applicable DOF value threshold.

Some properties are outside the surcharge entirely. These include vacant land, buildings without a certificate of occupancy, unsold sponsor units and bungalow colonies. Four-or-more-family buildings are not a covered property type.

There is also an important rule for two- and three-family homes. If at least one unit is used as a qualifying primary residence, the entire property is exempt from the surcharge.


A condo or co-op with a DOF market value of exactly $3 million moves into the 5.25% band, and the rate applies to the full value.

Condo and co-op units with a DOF market value of $1 million or more. The rate applies to the entire market value.DOF market value
Surcharge rate (% of entire market value)
Example annual surcharge
$1,000,000 or greater, but less than $3,000,000
Surcharge rate (% of entire market value)4.0%
Example annual surcharge$1.2M value → $48,000
$3,000,000 or greater, but less than $5,000,000
Surcharge rate (% of entire market value)5.25%
Example annual surcharge$3.0M value → $157,500
$5,000,000 or greater
Surcharge rate (% of entire market value)6.5%
Example annual surcharge$5.0M value → $325,000


Most condos and co-ops are subject at a DOF market value of $1 million or more. Rates are 4%, 5.25% and 6.5%, depending on the full DOF market value.


A covered home with a DOF market value of exactly $5 million uses the 0.8% rate, producing an annual surcharge of $40,000.

Tax Class 1 homes (and the small number of Tax Class 1 condos) with a DOF market value of $5 million or more. In Phase 2 this schedule applies to every covered property type.DOF market value
Surcharge rate (% of entire market value)
Example annual surcharge
$5,000,000 or greater, but less than $15,000,000
Surcharge rate (% of entire market value)0.8%
Example annual surcharge$5.0M value → $40,000
$15,000,000 or greater, but less than $25,000,000
Surcharge rate (% of entire market value)1.05%
Example annual surcharge$20M value → $210,000
$25,000,000 or greater
Surcharge rate (% of entire market value)1.3%
Example annual surcharge$30M value → $390,000


Covered one-family, two-family and three-family homes are subject at a DOF market value of $5 million or more. Rates are 0.8%, 1.05% and 1.3%, depending on the full DOF market value.


## The number buyers are most likely to get wrong


The surcharge is calculated from the **NYC Department of Finance market value**. It is not based on the listing price, asking price or purchase price.

This is the part buyers should check before looking at any estimate. A condo listed for $4 million may have a DOF market value of $1.2 million. In that example, the surcharge would be calculated from $1.2 million.

The rate is also flat within each band. Once the property falls into a band, that rate applies to the entire DOF market value. A condo with a DOF market value of exactly $3 million uses the 5.25% rate on the full $3 million, producing an annual surcharge of $157,500.

Owners can usually find the DOF market value on the annual Notice of Property Value, a surcharge notice or the DOF property record.


- ### Listing price
$4,000,000Do not use this valueThe seller's asking price or the price shown on a listing.Do not use this figure to estimate the surcharge.
- ### NYC DOF market value
$1,200,000Use this valueThe market value shown by the NYC Department of Finance for property-tax purposes.Use this figure for the surcharge calculation.
- ### Potential annual surcharge
$48,000ResultIn this example, 4% is applied to the full $1.2 million DOF market value.This is an estimate, not a determination that the property owes the surcharge.

Example showing a $4 million listing price that is not used, a $1.2 million DOF market value that is used, and a potential annual surcharge of $48,000 calculated at 4%.

The calculation uses the DOF market value, not the listing price, asking price or purchase price.


## Tax Class 1 condos and co-op values


A small number of condominium units fall into Tax Class 1. These are generally units in buildings of three stories or less that were originally built as one-family, two-family or three-family homes. They use the $5 million threshold rather than the $1 million condo threshold.

Co-ops need a separate explanation because an individual apartment is not assessed on its own. For Phase 1, DOF assigns an imputed value based on the cooperative corporation's market value and the apartment's share allocation.

That imputed value should be used for the calculator. A unit's absence from the published DOF list does not by itself prove that the unit is exempt.

Trust ownership may still qualify for a primary-residence exemption, but DOF may not be able to confirm that status automatically. An owner may need to provide the trust agreement, information about the current beneficiaries and proof that the property is used as a primary residence.


## Who may qualify for a primary-residence exemption


A property is not subject to the surcharge when, as of January 5, it is the primary residence of a qualifying person.

The most common pathways are:
- The owner uses the property as a primary residence.
- A qualifying tenant or subtenant uses it as a primary residence under a genuine lease of at least one year.
- The owner's spouse, child, sibling, parent, grandparent or grandchild uses it as a primary residence.
- An LLC, corporation or partnership owns the property, and the qualifying residents collectively hold more than 50% of the entity.
- A trust owns the property, and the residents are the trust's sole present beneficiaries.


A person can have only one primary residence for this tax. The rules also allow limited continuation after a resident's death, during a continuous hospitalization or during a temporary nursing or rehabilitation stay.


Who used the property as a primary residence on January 5?
- ### The owner
The individual owner used the property as a primary residence.Potential exemptionPotential exemptionThe owner may qualify by providing the residence documents required by DOF.
- ### A qualifying tenant or subtenant
The resident occupied the property under a genuine lease with a term of at least one year.Potential exemptionPotential exemptionThe owner may need the lease and supporting rental or residence records.
- ### An immediate family member
A spouse, child, sibling, parent, grandparent or grandchild used the property as a primary residence.Potential exemptionPotential exemptionProof of residence and the qualifying family relationship may be required.
- ### A qualifying owner of an entity
The property is owned by an LLC, corporation or partnership and the residents collectively hold the required majority interest.Review requiredReview requiredEntity documents, ownership percentages and residence records should be checked carefully.
- ### A qualifying trust beneficiary
The residents are the trust's sole present beneficiaries.Review requiredReview requiredDOF may request the trust agreement, beneficiary information and proof of primary residence.
- ### No qualifying primary resident
None of the recognized owner, tenant, family, entity or trust pathways appears to apply.Potential exposurePotential surcharge exposureThe property may be subject if it also meets the applicable property-type and DOF market-value threshold.[Estimate the potential surcharge](https://realestaterebatesnewyork.com/calculators/nyc-second-home-tax-calculator)

Six primary-residence pathways. Owner, qualifying tenant or subtenant, and immediate family member each show a potential exemption. Entity ownership and trust beneficiary ownership each require review. Where no qualifying primary resident applies, the property may have potential surcharge exposure.

The calculator can help identify a potential pathway, but DOF decides whether a specific property qualifies.


## Public rolls, notices, documents and deadlines


Appearing on a published DOF roll does not by itself mean that a property owes the surcharge. The roll covers a broad group of residential properties, including many that fall below the value thresholds or may qualify for a primary-residence exemption.

The reverse is also important. A property that does not appear on a public list should not be assumed exempt. The final result depends on property type, DOF market value, ownership and occupancy facts.

A notice is also not always the final answer. DOF may send one when its records do not clearly establish primary-residence status, especially for properties held by a trust, LLC, corporation or partnership.

After receiving a notice, I would start with seven checks:
- Confirm the property address, tax class and DOF market value.
- Check who used the property as a primary residence on January 5.
- Identify the correct exemption route.
- Gather the supporting ownership, occupancy and relationship documents before starting the filing.
- Save copies of every submission, attachment and confirmation.
- Do not rely only on the public roll or assume the notice is final.
- Confirm the deadline printed on the notice.


Depending on the exemption route, supporting documents may include a federal or state tax return, a driver's license, voter identification, a lease, proof of relationship, entity documents or a trust agreement.

The first-year deadlines are especially important:
- **August 21, 2026:** exemption application deadline for homes and condos.
- **August 24, 2026:** exemption application deadline for co-ops.
- **30 days from the initial determination notice:** deadline for a DOF primary-residence appeal.
- **January 1, 2027:** first bill including the surcharge is due.
- **January 5, 2027:** taxable status date for the 2027-28 fiscal year.
- **March 1, 2027:** Tax Commission deadline for condos and co-ops.
- **March 15, 2027:** Tax Commission deadline for one-family, two-family and three-family homes.


These dates come from different parts of the process. Owners dealing with a notice should confirm the deadline printed on the document they received.


Does the property appear on the published DOF roll?
- ### Yes, it appears
The property is included on the published roll.Review requiredNot proof that tax is owedCheck the property type, DOF market value, ownership and primary-residence status.
- ### No, it does not appear
The property is not visible on the published roll.InformationalNot proof of exemptionConfirm the DOF record and applicable rules before assuming the property is outside the surcharge.

Two pathways. If the property appears on the published roll, that is not proof that tax is owed and the property record should be reviewed. If it does not appear, that is not proof of exemption and the DOF record should still be confirmed.

A public-roll listing is a reason to review the property record. It is not a final liability determination.


- 1Step 1Important
### Read the entire notice
Confirm the property address, DOF market value, projected amount and deadline.
- 2Step 2
### Check the January 5 facts
Identify who used the property as a primary residence and how the property was owned on the taxable status date.
- 3Step 3Important
### Identify the correct filing route
Determine whether the issue concerns primary-residence status, market value or both.
- 4Step 4
### Gather documents before starting
Collect residence, ownership, lease, family, entity or trust records that support the selected route.
- 5Step 5Deadline
### Submit before the stated deadline
Use the official DOF or Tax Commission process that applies to the issue.**When:** Confirm the exact date on the notice
- 6Step 6Important
### Save proof of filing
Keep copies of the submission, every attachment, confirmation page and any date-stamped receipt.
- 7Step 7
### Track the determination
Watch for requests for additional information and confirm how the result affects the property tax bill.

Seven ordered steps for responding to a notice: read the entire notice, check the January 5 facts, identify the correct filing route, gather documents before starting, submit before the stated deadline printed on the notice, save proof of filing, and track the determination.

Do not treat the public roll or the initial notice as the final answer, but do not ignore either one.


## How the appeal routes differ


There are two main ways to challenge the surcharge, and they are not interchangeable.

A DOF appeal focuses on primary-residence status. It must generally be filed within 30 days of the initial determination notice. A Tax Commission filing can address market value, primary residence or both.

The choice matters because filing at the Tax Commission may close off the DOF route for the same issue. Owners should read the Tax Commission instructions carefully before filing.

For co-ops, each unit needs its own application. The date-stamped Form TC10 receipt is the accepted proof that a filing was made on time.


## What buyers and sellers should watch


The surcharge is not prorated during the year. If a buyer closes after January 5 and moves in immediately, that alone does not remove the surcharge for the current fiscal year.

Because the charge attaches to the property, buyers and sellers should address responsibility in the contract. This is one more item to review alongside property taxes, maintenance, common charges and assessments.

Co-ops require another layer of attention. The cooperative corporation collects the surcharge for affected units, and unpaid amounts can create exposure at the corporation level. Boards and attorneys may need to review how the proprietary lease handles that cost.

Regular abatements and property tax credits do not reduce the surcharge, although some records may help support a primary-residence claim.


## Estimate the potential surcharge


The calculator uses the DOF market value you enter and applies the published rate schedule. It also walks through the exemption questions before showing an estimate.

**[Open the NYC Second-Home Tax Calculator](https://realestaterebatesnewyork.com/calculators/nyc-second-home-tax-calculator)**

Have the Notice of Property Value or surcharge notice nearby. The calculator should not be used with a listing price.


## Sources and methodology


I reviewed the published DOF rate table, the DOF exemption guidance, the NYC Tax Commission appeal instructions and REBNY's Second-Home Annual Tax materials.
- [NYC Department of Finance: Non-primary residence surcharge](https://www.nyc.gov/site/finance/property/non-primary-residence-surcharge.page)
- [NYC Department of Finance: Exemption eligibility tool](https://www.nyc.gov/site/finance/property/property-surcharge-eligiblity-tool.page)
- [NYC Tax Commission: Surcharge appeals](https://www.nyc.gov/site/taxcommission/forms/surcharge-appeal.page)
- [REBNY: Second-Home Annual Tax resources](https://www.rebny.com/second-home-annual-tax-tools/)
- [The New York Times: reporting on the first public roll and notice rollout](https://www.nytimes.com/2026/07/29/nyregion/new-york-second-home-tax-rollout-anxiety.html)


The official government and REBNY materials are the sources for rates, thresholds, exemptions and deadlines. The New York Times reporting was used only for rollout context, including owner confusion about public lists and notices. Rates, thresholds and boundary rules were last checked on July 30, 2026.


## About this guide


This guide was prepared by **Régis Roumila**, a licensed real estate broker in New York and New Jersey with more than 25 years of experience in the New York City market.

I wrote it from a buyer's perspective because the biggest mistakes are practical ones: using the listing price instead of the DOF market value, assuming the tax is prorated or overlooking a deadline.

_This guide is for general information only. It is not legal, tax or financial advice. Whether the surcharge applies depends on the property's value, ownership and occupancy facts, as well as determinations made by the NYC Department of Finance. Buyers and owners should consult qualified legal and tax professionals about their own situation._


## Frequently Asked Questions
What is the NYC second-home tax?+
It is New York City's non-primary residence surcharge. It applies to certain high-value homes, condos and co-ops that are not used as a qualifying primary residence. It began July 1, 2026 and is separate from the regular property tax bill.

Is the surcharge based on my listing price or purchase price?+
No. The surcharge uses the NYC Department of Finance market value, not the listing price, asking price or purchase price. A condo listed for $4 million may have a much lower DOF market value, and that lower figure is the one used in the calculation.

Where do I find my DOF market value?+
Check the annual Notice of Property Value, the surcharge notice or the property's DOF record. For a co-op, use the imputed unit value assigned by DOF.

Does the rate apply to the whole value or only the amount above the threshold?+
The selected rate applies to the entire DOF market value. For example, a condo with a DOF market value of exactly $3 million uses the 5.25% rate on the full $3 million, for an annual surcharge of $157,500.

What are the thresholds for the first two years?+
For tax years 2026-27 and 2027-28, one-, two- and three-family homes enter at a DOF market value of $5 million. Most condos and co-ops enter at $1 million. A small number of Tax Class 1 condos use the $5 million threshold.

Who is exempt from the surcharge?+
A property may qualify when it is the primary residence of the owner, a qualifying tenant, an immediate family member, qualifying majority owners of an entity or the sole present beneficiaries of a trust. Vacant land, buildings without a certificate of occupancy, unsold sponsor units and bungalow colonies are excluded.

Can I appeal the surcharge?+
Yes. A DOF appeal can address primary-residence status, while a Tax Commission filing can address value, residence or both. The deadlines and filing choices interact, so owners should review the official instructions before choosing a route.

Is this calculator official tax advice?+
No. The calculator gives an informational estimate based on the published DOF rate schedule. DOF decides whether the surcharge applies to a specific property.

Is this a vacancy tax?+
No. A property can be used regularly and still be subject if it is nobody's primary residence. A temporarily empty property may still qualify if it remains someone's primary residence.

What happens if the property is sold during the year?+
The property's status is fixed as of January 5, and the surcharge is not prorated. A buyer who closes later in the year and moves in immediately may still inherit the current year's surcharge, so the contract should address responsibility.

Does appearing on the published DOF roll mean I owe the surcharge?+
No. The published roll includes a broad group of residential properties. Many fall below the applicable value thresholds or may qualify for a primary-residence exemption. Liability still depends on property type, DOF market value, ownership and occupancy facts.

Why might I receive a notice if this is my primary residence?+
DOF may not have enough information to confirm primary-residence status automatically, especially when the property is owned through a trust, LLC, corporation or partnership. Review the notice and submit the requested ownership and residence documents by the stated deadline.


Private Advisory • Régis Roumila

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