The pied-à-terre surcharge takes effect July 1, 2026. The sequence below shows who acts at each step — and the deadlines that make the first year so tight.
Using income-tax filing addresses, residency-based exemptions and other data, Finance values each flagged home and issues a notice of surcharge. The law says you owe the tax even if the notice never reaches you.
Notice by Aug. 30, 2026For example, by showing it is the address on their New York State resident tax return, that it is rented to a full-time tenant, or that it is occupied by a close family member.
If the home is not exempted, the surcharge stands and the first bill is issued.
First bill due Jan. 1, 2027Owners can contest the value, the primary-residence finding, or both, with further review available in court. Expect a wave of challenges in year one.
The threshold drops to a uniform $5 million of sale value and the lower house rates (0.8% to 1.3%) apply — if the City can build the unit-level valuation system in time.
Expected ~Jan. 15, 2028For co-ops
The bill goes to the cooperative corporation, which must forward notices to shareholders and collect each affected shareholder's surcharge — a job most proprietary leases were never written to handle.
Dates reflect the law as enacted in the FY2026 state budget; first-year deadlines apply only to 2026.