New York State Pied-a-Terre Tax

New York State has enacted a new pied-à-terre tax on secondary luxury residences in New York City. The tax targets high-value condos and cooperatives, potentially impacting property carrying costs significantly.

Key Takeaways

• 1.New York State has officially implemented a pied-à-terre tax on high-value non-primary residences in NYC, effective immediately.
• 2.The tax targets Class 1 (1-3 family) and Class 2 (condo/coop) properties with assessed values exceeding $5M and $1M respectively.
• 3.The legislation utilizes a two-phase implementation, with Class 2 property valuations shifting to a comparable-sales methodology in FY 2028/29.

Table of Contents

• Properties subject to the tax
• Exemptions
• Phase 1: FY 2026/27-2027/28
• Phase 2: FY 2028/29 and beyond