New York City has introduced an annual surcharge on certain high-value residential properties that are not used as a primary residence. Although it is often called the “pied-à-terre tax,” the official name is the non-primary residence property surcharge.
For most Staten Island homeowners, this surcharge will not apply. Still, owners of certain luxury homes, condominiums, co-ops, second homes and investment properties should understand how the rules work—especially if they have received a notice from the New York City Department of Finance.
As a native Staten Islander and a NYS Licensed Associate Broker, I believe homeowners are best served by clear information without unnecessary alarm. Here are the main points to know.
Which properties may be affected?
For the 2026–27 and 2027–28 property-tax years, the surcharge may apply to qualifying New York City residential properties that are not used as a primary residence:
- One-, two- and three-family homes with a Department of Finance market value of $5 million or more.
- Condominium and cooperative units with a Department of Finance market value of $1 million or more.
An important distinction is that these thresholds are based on the market value determined by the Department of Finance. They are not based on an owner’s asking price, an online estimate or the price a buyer may offer.
When might a property be exempt?
According to the Department of Finance, the surcharge generally will not apply when the property is used as a primary residence by a qualifying person. That may include the owner, an immediate family member, a tenant or subtenant, certain majority owners of an entity that owns the property, or qualifying trust beneficiaries.
Eligibility depends on the property’s circumstances and supporting documentation. Owners who received a Department of Finance letter and believe their property is exempt should follow the instructions and deadline in that notice. The city’s current published deadline for exemption applications is September 18, 2026.
How much is the surcharge?
For the 2026–27 and 2027–28 tax years, published rates range from 0.8% to 1.3% of Department of Finance market value for qualifying one- to three-family homes. For qualifying condominium and cooperative units, the published rates range from 4% to 6.5%, depending on the applicable value tier.
Because these percentages can represent a substantial annual cost, affected owners should confirm their property classification, the Department of Finance value being used and whether they qualify for an exemption.
What does this mean for Staten Island sellers?
The surcharge is not a reason for the typical Staten Island homeowner to rush into a sale. Most owner-occupied homes do not fall within the stated thresholds, and a primary residence may qualify for exemption even when its value reaches the applicable level.
If you own a higher-value property that is not your primary residence, however, the surcharge may become part of your decision about whether to keep, rent or sell it. Before making that decision, separate three questions:
- Does the property meet the Department of Finance value threshold?
- Is it being used as a qualifying primary residence?
- If the surcharge applies, how does the added carrying cost affect your longer-term plan?
A real-estate professional can help you understand current market conditions and what a property may sell for. Questions about tax liability, exemptions or appeals should be directed to the Department of Finance and an appropriate tax or legal professional.
What should buyers consider?
Buyers considering a second home or investment property should include all potential taxes and carrying costs in their planning. Buyers intending to make the property their primary residence should still review the rules carefully and retain the documents needed to establish qualifying use.
This is especially important for condominiums and co-ops because their value threshold and surcharge rates differ from those for one- to three-family homes.
Where can owners get official information?
The most reliable starting point is the New York City Department of Finance non-primary residence surcharge page. It includes the current thresholds, rates, eligibility guidance, application instructions and deadlines.
If you are considering selling a Staten Island property and want a clear picture of its current market position, I would be happy to have a no-pressure conversation about value, preparation and timing.
This article is for general informational purposes only and is not tax or legal advice. Rules, deadlines and individual circumstances can change. Consult the New York City Department of Finance and qualified tax or legal professionals regarding your property.