New York City approves 5,700 pied-à-terre tax exemptions

New York City has approved approximately 5,700 exemption applications for its new pied-à-terre tax, according to data from the Department of Finance. Out of roughly 10,000 applications submitted as of early October, more than half have been granted exemptions from the surcharge on high-value non-primary residences.

The tax targets one- to three-family homes with city-assessed market values exceeding $5 million, as well as condominium and cooperative units valued at $1 million or more. The measure was introduced by Mayor Zohran Mamdani and Governor Kathy Hochul with initial revenue projections of over $500 million annually.

However, the high volume of successful exemption requests has led legal representatives to question the accuracy of the city’s original fiscal forecasts. The program faces ongoing litigation following a State Supreme Court ruling that required the city to restart its rollout after notices were sent prematurely to thousands of homeowners. While City Hall appealed this ruling and obtained a stay to continue collection, property owners face an immediate filing deadline of October 13.