How does the new NYC pied-a-terre tax work?
The pied-a-terre tax applies to NYC condos and co-ops valued at $1 million or more that are not the owner’s primary residence. In phase one (fiscal years 2026-2028), properties between $1M and $3M are taxed at 4%, $3M to $5M at 5.25%, and above $5M at 6.5%. Starting fiscal year 2028-2029, properties are revalued using comparable sales and rates shift to 0.8% for $5M-$15M, 1.05% for $15M-$25M, and 1.3% for over $25M. The tax took effect July 1, 2026. Talk to Joseph Ranola about how this affects your property.
What happened to the NYC cash buyer tax?
The proposed 1% surcharge on cash home purchases at $1 million or more in NYC was dropped from the final FY2026-2027 state budget. The tax was projected to generate $160 million annually. REBNY led the opposition, arguing New Yorkers are already the most heavily taxed residents in the country. This is a meaningful win for NYC cash buyers at the $1M+ threshold. Contact Joseph Ranola if you are buying with cash in Staten Island or Brooklyn.
How much will Ken Griffin pay under the pied-a-terre tax?
Ken Griffin paid $238 million for his penthouse at 220 Central Park South in 2019, but NYC currently values it at only $15.5 million for tax purposes. His current property tax bill is $858,332. Under phase one of the pied-a-terre tax, that roughly doubles to $1.87 million. When the revaluation kicks in during fiscal year 2028-2029, Griffin’s bill could rise to approximately $3.1 million annually.
Does the pied-a-terre tax affect Staten Island and Brooklyn homeowners?
If you live in your home as your primary residence, the pied-a-terre tax does not apply to you regardless of your property’s value. The tax only targets condos and co-ops that are NOT the owner’s primary residence and are valued at $1 million or more. Most Staten Island and Brooklyn homeowners are not affected. However, if you own investment condos in Manhattan or Brooklyn valued above $1M, you should speak with a tax professional. Work with Joseph Ranola for personalized guidance.
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Daily Tesla News is your daily dose of NYC real estate news that actually matters. Covering Staten Island and Brooklyn markets, policy changes, and homeowner tips.
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