Non-Primary Residence Surcharge
Phase One rates and every date that matters
Two rate ladders, one cliff, and a calendar that runs from the notices in your mailbox to the sunset on June 30, 2031.
Updated 2026-08-02.
Phase One rates
These apply for fiscal years 2026-27 and 2027-28.
| DOF market value | Rate on the entire value |
|---|---|
| $1M to under $3M | 4.00% |
| $3M to under $5M | 5.25% |
| $5M and over | 6.50% |
| DOF market value | Rate on the entire value |
|---|---|
| $5M to under $15M | 0.80% |
| $15M to under $25M | 1.05% |
| $25M and over | 1.30% |
The cliff
The rule preamble is explicit: "If a property or cooperative dwelling unit's valuation exceeds the threshold, the entirety of the property's value is subject to the surcharge." Crossing the line by a dollar puts the whole value in, and existing abatements, credits and exemptions do not offset any of it.
Every figure is a DOF market value, not a sale price. For condominiums and cooperatives that value comes from an income method running well below open-market prices, which is why a $1 million DOF value corresponds to roughly a $5 million apartment.
The calendar
| Date | What happens? |
|---|---|
| July 22, 2026 | Notices dated and mailed, each carrying a unique security code. |
| July 24, 2026 | DOF publishes the supplemental market value roll listing properties that may be subject, with Phase One values. |
| August 1, 2026 | DOF extends the exemption application deadline: one date, September 18, 2026, for everyone who received a notice, replacing the printed August 21 and August 24. |
| August 30, 2026 | DOF's statutory outside date to transmit year-one determinations. The city's deadline, not the owner's. |
| September 18, 2026 | Extended response deadline for homes, condominiums, and cooperative units. |
| November 2026 | Bills issued. |
| December 31, 2026 | Final version of the assessment roll addendum. |
| January 1, 2027 | First surcharge payment due, with the second semi-annual property tax installment. Semi-annual after that. |
| March 1 and March 15, 2027 | Tax Commission Form TC107 deadlines, Class 2 and Class 1, or 30 days after DOF's final determination, whichever is later. |
| July 1, 2028 | Phase Two: comparable-sales valuation for co-ops and condos, a single $5 million threshold, and the Class 1 rate ladder. |
| June 30, 2031 | The surcharge sunsets. |
Two dates behind the dates
Primary residence status for fiscal year 2026-27 is judged as of the taxable status date, January 5, 2026, months before the law was enacted on May 28, 2026. And in later years DOF's own notice deadline moves to January 30, so this compressed first-year calendar is not the permanent shape of the program.
Sources
- NYC Finance: non-primary residence surcharge
- NYC Mayor's Office: deadline extended to September 18, 2026
- 19 RCNY Chapter 62, adopted rule and preamble
- Sullivan & Cromwell: New NYC non-primary residence tax
- Day Pitney: what the new tax does
- NYC Tax Commission: surcharge appeal (Form TC107)
- Brick Underground: how co-op boards collect it
- Rosenberg & Estis: final rules and the roll addendum
Keep reading
- What does the surcharge notice actually say?What does the NYC non-primary residence surcharge notice dated July 22, 2026 mean, what does it not mean, and which deadlines govern your response?
- The five ways a property is exemptThe five relationships that exempt a NYC property from the non-primary residence surcharge, and the documents the Department of Finance accepts as proof.
- Responding before the date on your noticeFiling the NYC non-primary residence surcharge response: the portal and security code, the documents DOF accepts, the deadline, and the appeal paths.
- The questions owners actually askPlain answers on the NYC non-primary residence surcharge: what it is, the rates and thresholds, LLC and tenant exemptions, deadlines, and appeal options.
See what the city has on record for your property
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