06/04/2026
New York City's pied-à-terre tax takes effect on July 1, 2026, introducing a recurring annual surcharge on certain non-primary residences valued above specific thresholds. This is not a one-time transfer tax. It applies every year.
The surcharge targets condominiums, cooperatives, and one- to three-family homes that are not occupied as a primary residence, with rates varying by property type and value during the initial phase. A second phase beginning in 2028 will shift to a comparable sales valuation model.
For owners of high-value second homes in the city, the financial and planning implications are significant. Questions around valuation methodology, ownership structures, rental exemptions, and enforcement are already emerging.
BBG has published an advisory breaking down the rate structure, key exemptions, market concerns, and what affected property owners should be doing now.
Read it here: https://bbgllp.com/new/nyc-pied-a-terre-tax/
