New York City second homeowners should prepare to pay more than double in property taxes as a result of the new Pied-A-Terre Tax aimed at the wealthy.

June 2026

The State of New York has enacted a Pied-A-Terre Tax (similar to a real estate tax), effective July 1, 2026, that is imposed on New York City second homes, as an investment rather than one's primary home.

The pied-a-terre tax rate of 0.8%-6.5% applies to luxury second homes valued at over $5 million or more, and residential co-ops and condos valued at over $1 million or more.

A New York City non-resident is not subject to this tax where they own a New York City rental apartment building, a commercial property, a hotel, vacant land, new construction without a certificate of occupancy, an unsold sponsor unit, or a condo that includes three units.

The exemption to the pied-a-terre tax is not limited to an owner living in the New York City home and extends to immediate family members (spouse, child, sibling, parent, grandparent, or grandchild) who occupy the New York City apartment/home as their primary residence; arm's length leases of at least one year; properties held in trust or through an LLC or partnership.

New York City shall decide by August 30 on the residence status as of January 5 of the preceding year. An adverse determination by New York City may be appealed.

The City of New York may audit any primary residence certification. It is necessary to retain good records (insurance, mortgage, passport, driver's license, utility bills, leases, social security and IRS correspondence, and school enrollment).

The tax structure is whether a property qualifies as a primary residence, which is open-ended. The statute identifies on relevant factor…whether the property is occupied for a majority of days in the calendar year.

Per the current legislation, an individual who maintains their primary residence (domicile) outside of New York City and is deemed a New York City statutory resident by virtue of spending more than 183 days only at the New York City residence, is subject to the pied-à-terre tax.

The surcharge applies to covered property that is not a primary residence, a factual determination

The Pied-A-Terre Tax is due and payable in the same manner as real estate property taxes. If you have questions, please contact Scott Ehrenpreis at 212-605-3131 or email sehrenpreis@pwcpa.com.