Non-Primary Residence Surcharge (Pieds-à-Terre Tax)

A New York City Department of Finance notice titled “Non-primary residence property surcharge: Respond by August 21, 2026” means the City’s records show no qualifying primary resident for your property, and it may be subject to the new annual surcharge, sometimes referred to as the pieds-à-terre tax. The notice states the property’s fiscal year 2027 market value and the surcharge due unless you are granted an exemption: 4.00%, 5.25% or 6.50% of the entire market value for condos and co-ops from $1 million, and 0.80% to 1.30% for one- to three-family homes from $5 million. Homes, condos, and cooperative units all respond by September 18, 2026; the deadline was extended from the August dates printed on the notices.

Three names, one surcharge: the letter 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 you arrived with, this page is about the same charge.

The surcharge is not automatic. An exemption applies when the property is the primary residence of the owner, 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, or the sole beneficiary of a trust. The nuance sits in the details: primary residence is measured as of January 5, 2026, a qualifying tenant must be a natural person, multi-tier entity structures cannot qualify, and intended future occupancy does not count. By MGNY analysis of the FY2027 assessment rolls, more than half of the 8,900+ NYC condo units above the threshold are owned through LLCs, trusts and other entities, exactly where the documentation gets hardest.

MGNY Consulting is uniquely positioned to challenge the pieds-à-terre tier surcharge, by either filing an exemption or reducing the market value through the New York City Department of Finance or the Tax Commission appeal application process. The choice of route is itself strategic: asking the Tax Commission to review the exemption requires challenging the value as well, and its determination replaces the direct exemption application to the Department of Finance. And because each surcharge tier applies to the entire market value once crossed, a valuation reduced below the $1 million, $3 million or $5 million line changes the rate on every dollar.

Throughout the years, MGNY Consulting has thrived on finding solutions to complex issues and resolving inconsistencies between the New York City Department of Finance records and the actual property’s characteristics, including the square footage, usage and market value. It is the same record-level work behind our annual RPIE filing service and the 2,500+ properties MGNY represents in annual appeals, and it is precisely what this surcharge rewards: the valuation printed on the notice is only as reliable as the record behind it.

Start with the numbers. Our calculator at piedterretax.com estimates your surcharge under the current rate tiers. Our lookup at pied-a-terre.mgnyconsulting.com shows where your property stands. The notice itself is explained step by step at npsurcharge.com. Our full explainer, who pays, the five exemptions, and how the response is filed, is at the surcharge, explained. Then call +1 (212) 343-1111: we review the notice, the ownership structure and the Department of Finance record while you are on the line, determine which exemption criterion fits, prepare the documents the nyc.gov/npsurcharge portal asks for before your deadline, and advise whether the value itself deserves a challenge.

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