If you or someone in your family owns a home, condo, or co-op in New York City that isn’t your primary residence, a new tax may soon apply, and it raises a question that comes up often in our practice: does your residency documentation actually reflect where you live?
What Is the New York City Pied-à-Terre Tax?
New York State recently enacted a new surcharge, commonly called the “pied-à-terre tax,” on certain high-value residential properties in New York City that don’t serve as the owner’s primary residence. The tax applies to fiscal years beginning July 1, 2026, and is currently scheduled to sunset on June 30, 2031.
In its first phase, the tax applies to:
- One-, two-, and three-family homes valued at $5 million or more
- Condos and co-ops valued at $1 million or more
A second phase begins July 1, 2028, applying to the same property types, though the value threshold for condos and co-ops rises to $5 million and the top rate decreases. Certain properties, including vacant land, commercial property, and residential rental buildings, are excluded.
The Primary Residence Exception And Why It Matters
The most important question for many owners will be whether their property qualifies for the primary residence exception. For the initial year, status is determined as of January 5, 2026, with notice sent to owners no later than August 30, 2026.
A property may qualify for the exception if:
- It serves as the primary residence of the owner or an immediate family member (spouse, child, sibling, parent, grandparent, or grandchild), or
- It is subject to an arm’s-length lease of at least one year.
Proving primary residence status isn’t automatic since it requires documentation, and the standards can be fact-specific, particularly when a property is held in a trust, LLC, or partnership.
What This Means for Florida Residents
Many of our clients split their time between Florida and New York, or moved to Florida years ago but never sold the family apartment in the city. If that sounds familiar, this new tax is worth a closer look, but it also highlights something we encourage every client in this situation to revisit: whether your residency and estate planning documents clearly establish Florida as your primary home.
This isn’t just about the pied-à-terre tax. The same “where do you actually live” question affects Florida domicile status for estate tax and income tax purposes more broadly, and it’s a question worth answering clearly, well before a taxing authority asks it for you.
What to Do Next
The pied-à-terre tax itself is a New York City matter, so we recommend involving a New York tax professional for the filing and certification requirements. Where our firm can help directly is on the Florida side: making sure your residency documentation, trust structure, and estate plan clearly support your intended domicile, so you’re in a strong position no matter which state’s tax authority is asking.
If you own property in New York City and want to review how it fits into your Florida estate plan, we’d welcome the conversation.
Talk to an Estate Planning Attorney
Contact SJF Law Group at (954) 580-3690 to schedule a complimentary consultation, or reach out through our online contact form here. We’re here to help make sure your estate plan reflects where, and how, you actually live.
This article is intended for general informational purposes only and does not constitute legal, tax, or accounting advice. Please consult with a qualified attorney or tax professional regarding your specific situation.
