Under 9K N.Y. homeowners to pay pied-à-terre tax, papers report

What happened

Fewer New York City homeowners than first expected will pay the city's new pied-à-terre tax, a surcharge on second homes. NY1's morning newspaper roundup on Thursday, 10/15/2026, put the number at less than 9,000 homeowners. The Real Deal, citing Crain's, reported the same day that likely fewer than 10,000 owners remain subject to it.

The city first notified more than 17,000 people that they could owe the surcharge. The Department of Finance received more than 11,000 exemption applications and granted more than 6,800, according to Crain's as cited by The Real Deal. The deadline to apply passed this week after several extensions. Between exemptions and errors the city caught in tax records, nearly 9,000 homeowners have been spared.

The surcharge applies to one-, two- and three-family homes valued at $5 million and up, and to condo and co-op units with assessed values of $1 million and up. The amount depends on the home's value. State officials projected $500 million a year based on 13,000 homes. City Comptroller Mark Levine found that figure reachable with as few as 11,200 taxpayers. The Real Deal reported that City Hall still thinks $500 million is possible. The pool may shrink further as owners contest their property valuations with the Tax Commission.

The tax also faces court challenges. Last month a Staten Island judge ordered the Zohran Mamdani administration to scrap its first rollout and start over. The city appealed and won a stay from the appellate court, so the rollout continues. Two other suits challenge the surcharge on constitutional grounds. In one, plaintiffs Steve Wynn and former Commerce Secretary Wilbur Ross are seeking to move the case from Suffolk County to New York County.