Pied-à-Terre Tax Surcharge Creates New Planning Considerations for Luxury NYC Property Owners
The New York State Legislature recently enacted the Pied‑à‑Terre Tax (PAT) Surcharge, introducing a significant, additional annual real estate tax on certain high-value New York City residential properties that are not the owner’s primary residence – including single family residences, condominium units and cooperative units. The PAT Surcharge was enacted by the Legislature as part of the 2026-2027 New York State Budget Bill and added Sections 1350 to 1356 to Article 30-C of the New York State Tax Law entitled “City Surcharge on Property That Does Not Serve as a Primary Residence.”