New York City Mayor Zohran Mamdani and Finance Commissioner Richard Lee announced on August 1 that the exemption application deadline for the pied-à-terre tax has been extended by four weeks to September 18, 2026, from the original August 21 date [1, 2, 3, 4, 5, 6, 7].

The pied-à-terre tax applies to non-primary residences valued above certain thresholds: condominiums and co-ops worth $1 million or more, and single-, two-, or three-family homes valued over $5 million. The tax covers the 2026-2028 fiscal years [1, 2, 3, 4, 5].

Tax rates range from 0.8% to 1.3% for one- to three-family homes and from 4% to 6.5% for condominiums and co-ops. The tax amount, if owed, will be included in the property tax bill due January 1, 2027 [1, 2, 3, 4, 5].

Homeowners eligible for exemption include those who use the property as their primary residence, or if it is the primary residence of qualified direct relatives, trust beneficiaries, or majority owners of property companies. Natural person tenants or subtenants treating the property as their primary residence may also qualify [1, 2, 3, 4, 5].

Applicants must provide proof such as recent federal or state tax returns. If unavailable, two documents from an approved list like a driver's license, voter ID, or DMV ID plus lease agreements and utility bills may be submitted to claim tenancy exemptions [1, 2, 3, 4, 5].

The city has boosted outreach efforts, contacting co-op and condo boards, property managers, community groups, and senior centers to inform residents about the tax and exemptions [1, 2, 3, 6].

Homeowners who believe their property valuation is incorrect can appeal to the city tax commission [1, 2, 3, 4, 5].

The tax was introduced by Mayor Mamdani in April 2026 to tax wealthy owners and raise an estimated $500 million annually to address New York City's budget shortfall. It was passed by the state legislature in May and took effect July 1. The Department of Finance started sending surcharge letters to about 17,000 homeowners in July [6, 7].

Some affluent residents, including Ken Griffin and Bill Ackman, criticized the tax and its rollout. Griffin described a video singling him out by the mayor as "creepy and weird" [6, 7]. Public confusion emerged when the city initially published a large property list, prompting the city to clarify that only those receiving formal letters must act. “Only property owners to whom DOF sent a notification by mail are required to take further action,” the Finance Department noted [7].

A New York City press release said the extension "gives homeowners additional time to establish that the property is their primary residence or demonstrate they are not subject to the surcharge. It also provides more time for homeowners to receive assistance from the Department of Finance and have their questions answered before submitting an application" [6].

The next key date is January 1, 2027, when any owed pied-à-terre tax will be due with the property tax bills [1, 2, 3, 4, 5].