The NYC Non-Primary Residence Surcharge, Explained: Who Pays, Who Is Exempt, and the September 18 Deadline
Who pays, who is exempt, the September 18 deadline, and how a response to the Department of Finance is actually filed.
Update, August 10, 2026: a court order has temporarily blocked the surcharge rollout. The tax law itself still stands and the September 18 date has not moved. See what the court order pauses, and what it does not.
The surcharge reaches condominium and cooperative units the Department of Finance values at $1 million or more, and one- to three-family homes valued at $5 million or more, when the city does not have a qualifying primary resident on record for the property. It applies for fiscal year 2027, and the first surcharge lands with the property tax bill of January 1, 2027.
Three names, one surcharge: the letter from the Department of Finance says non-primary residence property surcharge, New Yorkers say pied-a-terre tax, and law firms writing to their clients have shortened that to the PAT tax. Whichever name brought you here, this page is about the same charge.
Who has to pay the surcharge?
| Property | DOF market value | Rate |
|---|---|---|
| Condos and co-ops (Class 2) | $1M to $3M | 4.00% |
| $3M to $5M | 5.25% | |
| $5M and above | 6.50% | |
| One- to three-family homes (Class 1) | $5M to $15M | 0.80% |
| $15M to $25M | 1.05% | |
| $25M and above | 1.30% |
The rate applies to the entire market value once the threshold is crossed, not only to the portion above it. Note that DOF market value is not a sale price; for Class 2 units it runs well below what the apartment would trade for.
Which properties are exempt?
A property is exempt when any one of five people uses it as a primary residence:
- The owner of the property
- A tenant or subtenant
- One or more individuals who collectively hold a majority interest in the LLC, corporation, or partnership that owns the property
- An immediate family member of the owner or majority interest holder
- The sole beneficiary of a trust
The exemption is not automatic. Somebody has to tell the Department of Finance which relationship applies, with documents, through the city’s response portal.
When is the deadline to respond?
The notices mailed July 22, 2026 printed August 21 for homes and condos and August 24 for cooperative units. Those dates are superseded: on August 1, 2026 the Mayor and the Finance Commissioner extended the deadline to a single date, September 18, 2026, for everyone who received a notice.
What happens if the notice is ignored?
The surcharge is added to the January 1, 2027 bill. After a determination there are two appeal tracks: a review with the Department of Finance, and the Tax Commission, where Class 2 owners file Form TC107 by March 1, 2027 or within 30 days of a final determination, whichever is later. Responding before September 18 is simpler than either.
How is a response actually filed?
Every notice carries a unique security code that ties the response to the property on the portal at nyc.gov/npsurcharge. The filing itself is document work: each of the five exemption paths has its own set of acceptable proof under the city’s rule, and the documents have to agree with one another. Tax returns, DMV identification, leases, and trust papers each carry different weight depending on the path.
What does it cost to ask MGNY?
Nothing. A real person answers at (212) 343-1111, right away, and the consultation is free. You engage us only if you want the response handled for you. MGNY has worked NYC property tax since 2008, across 900+ tax abatement developments, with $23.6M in tax refunds secured for owners.
Received a notice? Talk it through before September 18.
Call (212) 343-1111. A real person answers right away, the consultation is free, and you engage us only if you want the response handled for you.
Or look first: the free instant check shows the value the Department of Finance put on your property and what the surcharge would cost each year, free and without signing in, and the exemption check at npsurcharge.com shows whether your property reads as liable or exempt and what the city has on record for it.
Sources: NYC Department of Finance, nyc.gov/npsurcharge, read August 2026; Mayor’s Office release of August 1, 2026 announcing the deadline extension; the adopted rule at 19 RCNY 62.
