New York Begins Issuing NYC Pied-à-Terre Tax Notices

The New York City Department of Finance has begun mailing NYC Pied-à-Terre (Non-Primary Residence Surcharge) notices to property owners who may be subject to the new tax and providing exemption applications with a due date of August 21, 2026.

The tax generally applies to:

• Condominiums and cooperative apartments with a Department of Finance market value of $1 million or more; and
• One-, two-, and three-family homes with a Department of Finance market value of more than $5 million,

provided the property is not otherwise exempt.

The most common exemptions include:

• The property is the owner’s primary residence;
• The property is occupied as the primary residence of a tenant;
• The property is occupied as the primary residence of an immediate family member of the owner; or
• The property is owned by an entity (such as an LLC, partnership, or corporation) and is occupied as the primary residence of one or more individuals who collectively own a majority interest in the entity.

If you receive a Pied-à-Terre notice, follow the instructions on the notice to apply for an exemption at nyc.gov/npsurcharge and input the information and/or documentation required. Each notice will have a unique security code to be used when submitting your response. Even if the Department of Finance ultimately denies an exemption, your right to appeal is generally preserved only if a timely exemption application is submitted by the August 21,2026 deadline.

For a more detailed discussion of the new NYC Pied-à-Terre Tax, including who is affected, how the tax is calculated, and the available exemptions, please refer to our article in last month’s client newsletter.

Please reach out to your LMC professional if you have any further questions.