{"id":21872,"date":"2026-08-11T15:00:08","date_gmt":"2026-08-11T19:00:08","guid":{"rendered":"https:\/\/www.renthop.com\/blog\/?p=21872"},"modified":"2026-08-11T15:00:07","modified_gmt":"2026-08-11T19:00:07","slug":"pied-a-terre-tax","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/pied-a-terre-tax\/","title":{"rendered":"What to Know About the New Pied-\u00e0-Terre Tax"},"content":{"rendered":"

One of the campaign promises from Zohran Mamdani when he was running for Mayor in 2025 was that the rich would pay their fair share. On July 23rd, the first step towards fulfilling this measure was put into place. Property owners who may be subject to the \u201cpied-\u00e0-terre\u201d, or in layman’s terms \u201cSecond Home\u201d tax have been notified.\u00a0<\/span><\/p>\n

In this post, let\u2019s look at the history of \u201cpied-\u00e0-terre\u201d taxes. What does this mean for New Yorkers? What are the logistics of this tax? Who really is affected by this, and how sustainable is this long-term?<\/span><\/p>\n

Examples of Pied-\u00e0-Terre Historically<\/span><\/h2>\n

Let\u2019s first define what pied-\u00e0-terre is. The term pied-\u00e0-terre is French for foot\/feet on the ground. When it comes to how it applies to this tax, it is quite literally referring to a place of residence, usually located in metropolitan areas, and not used as an individual\u2019s main living residence. For those wealthy enough to own more than one property, this causes a problem when it comes to housing supply.\u00a0<\/span><\/p>\n

Legislation began to be discussed in the 2010s in Paris and New York, when taxes were starting to be discussed. In 2019, the first proposed bill that would have placed a recurring tax on luxury pieds-\u00e0-terre was blocked by real estate developers and lobbyists looking to protect them.<\/span><\/p>\n

On Tax Day this year (April 15th, 2026), the Governor of New York, Kathy Hochul, and New York Mayor, Zohran Mamdani, proposed a new version of the tax. The tax would apply to second homes valued at over $5 million. On May 27th, 2026, the New York State Legislature approved the tax. It took effect on July 1st, 2026.<\/span><\/p>\n

French Example<\/span><\/h2>\n

With the term pied-\u00e0-terre being French, there is a prime example of the French government implementing rules to focus on the housing supply crisis that faced their residents. They had small apartments that were roughly 8 square meters, or for our American readers, 86 square feet. Not a lot of room, but they were sold or rented to people who needed them for work or for study rooms. In 2010, the French government instituted a rule that any French city with more than 200,000 inhabitants would require a minimum one-year lease on apartments. This is one way they have combated short-term rentals that would not be used.\u00a0<\/span><\/p>\n

Netherlands Example<\/span><\/h2>\n

While the French and Americans have higher-profile stories when it comes to pied-\u00e0-terre, the Netherlands have their own version. In Amsterdam, they define pied-\u00e0-terre based on a certain rental value. Additionally, they have the rule that if an owner of the house has their children living there, then every child needs to be registered within that municipality. It is common that many public figures in Amsterdam have their pied-\u00e0-terre in Amsterdam and live in other places.\u00a0<\/span><\/p>\n

Benefits of the Pied-\u00e0-Terre tax<\/span><\/h2>\n

One of the big talking points of the pied-\u00e0-terre tax is the revenue that would be brought in. The Governor and the Mayor estimate $500 million from roughly 13,000 homes that fall under the term pied-\u00e0-terre. These are the homes that have a market value of at least $5 million.<\/span><\/p>\n

Logistics of the tax<\/span><\/h2>\n

There are many intricacies when it comes to who gets taxed and how much. To learn more about what the <\/span>Comptroller’s website<\/span><\/a> has laid out how they are going to implement this tax. This includes exemptions, tax rates, and even experience data based on how this shook out in Vancouver, England.\u00a0<\/span><\/p>\n

What the estimated revenues need to take into account is the properties that are currently being rented. Those would not be subject to the tax. If this tax doesn\u2019t yield the financial benefits that it is expected, the hope would be that enough housing opens up and more apartments would be available to purchase or rent.\u00a0<\/span><\/p>\n

Below is a chart that shows how the surcharges will be applied:<\/span><\/p>\n

For property tax years 2026-27 and 2027-28, the surcharge will generally apply as follows:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
Property type<\/b><\/td>\nDOF market value<\/b><\/td>\nSurcharge rate<\/b><\/p>\n

(% of market value)<\/b><\/td>\n<\/tr>\n

One-, two-, and three-family homes<\/span><\/td>\n$5,000,000 or greater, but less than $15,000,000<\/span><\/td>\n0.8%<\/span><\/td>\n<\/tr>\n
$15,000,000 or greater, but less than $25,000,000<\/span><\/td>\n1.05%<\/span><\/td>\n<\/tr>\n
$25,000,000 or greater<\/span><\/td>\n1.3%<\/span><\/td>\n<\/tr>\n
Condominium and cooperative units<\/span><\/td>\n$1,000,000 or greater, but less than $3,000,000<\/span><\/td>\n4.0%<\/span><\/td>\n<\/tr>\n
$3,000,000 or greater, but less than $5,000,000<\/span><\/td>\n5.25%<\/span><\/td>\n<\/tr>\n
$5,000,000 or greater<\/span><\/td>\n6.50%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Opposition to Pied-\u00e0-Terre tax<\/span><\/h2>\n

When it comes to any taxes, it\u2019s understandable that people want to protect their financial interests. One controversy that occurred with the notification of the property owners who would be subject to the second home tax, was the publication of the names and addresses associated with the tax. City officials have been clear that this happens twice a year for a public audit. The timing of the tax going into effect around the same time, of course, raised ears for those people who are sensitive to the nature of higher taxes.\u00a0<\/span><\/p>\n

One critique of the tax boils down to the fact that market value defined by the city does not always correlate with actual worth. City officials have heard this complaint and will work to develop a new valuation system for the tax when it goes into effect in 2028.\u00a0<\/span><\/p>\n

Exemptions<\/span><\/h2>\n

Those who feel that they are not deserving of the city valuation can file for an <\/span>exemption<\/span><\/a>. Those in Residential homes, condos, and cooperative units have until September 18th, 2026 to file for an exemption. If you are the owner of the property, a tenant or subtenant, an individual who collectively holds a majority interest in the LLC, corporation, or partnership that owns the property, an immediate family member of the property owner, or the sole beneficiary or beneficiaries of a trust, you should be exempt from the surcharge. Just make sure you have the following documents:<\/span><\/p>\n

Primary residence documents<\/span><\/h3>\n

All owners applying for an exemption from the surcharge will be asked to provide one of the following for each occupant you identify as using the property as a primary residence:<\/span><\/p>\n

    \n
  • Most recently filed federal or state tax return<\/span><\/li>\n
  • Driver\u2019s license or other DMV-issued identification<\/span><\/li>\n<\/ul>\n

    If a tax return, driver\u2019s license, or other DMV-issued identification is not available, you can provide both of the following items:<\/span><\/p>\n

      \n
    • Voter identification card<\/span><\/li>\n
    • Other proof showing that the property is your primary residence<\/span><\/li>\n<\/ul>\n

      Tenant documents<\/span><\/h3>\n

      If the property is the primary residence of a tenant or subtenant, you will be asked to provide the primary residence documents listed above, as well as:<\/span><\/p>\n

        \n
      • A copy of the current lease and one additional rental document, such as a utility bill, proof of rent payment, or renter\u2019s insurance policy, OR<\/span><\/li>\n
      • A Tenant or Subtenant Affidavit and two additional rental documents<\/span><\/li>\n<\/ul>\n

        Immediate family member<\/span><\/h3>\n

        If the property is the primary residence of an immediate family member of the owner or majority interest holder, you will be asked to provide the primary residence documents listed above, as well documentation proving the family relationship.<\/span><\/p>\n

          \n
        • Birth certificate<\/span><\/li>\n
        • Marriage certificate<\/span><\/li>\n
        • Immediate Family Member Affidavit Form<\/span><\/li>\n<\/ul>\n

          Business entity<\/span><\/h3>\n

          If the property is owned by a business entity (such as an LLC, corporation, trust, or partnership) and is used as a primary residence by a majority member, shareholder, or partner, you will be asked to provide the primary residence documents listed above.<\/span><\/p>\n

          In addition, you must provide:<\/span><\/p>\n

            \n
          • Partnership agreement, trust agreement or affidavit, LLC operating agreement, or articles of incorporation<\/span><\/li>\n
          • Majority Interest Affidavit<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            One of the campaign promises from Zohran Mamdani when he was running for Mayor in 2025 was that the rich would pay their fair share. On July 23rd, the first step towards fulfilling this measure was put into place. Property owners who may be subject to the \u201cpied-\u00e0-terre\u201d, or in layman’s terms \u201cSecond Home\u201d tax […]<\/p>\n","protected":false},"author":18,"featured_media":21898,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"yes","_lmt_disable":"no","footnotes":""},"categories":[1],"tags":[],"class_list":["post-21872","post","type-post","status-publish","format-standard","has-post-thumbnail","category-renthop"],"yoast_head":"\nWhat to Know About the New Pied-\u00e0-Terre Tax - Real Estate Topics, Tips, and Guides<\/title>\n<meta name=\"description\" content=\"Pied-\u00e0-Terre explained and the implications it has had on other cities as well as how it could affect New York.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.renthop.com\/blog\/pied-a-terre-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What to Know About the New Pied-\u00e0-Terre Tax\" \/>\n<meta property=\"og:description\" content=\"Pied-\u00e0-Terre explained and the implications it has had on other cities as well as how it could affect New York.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.renthop.com\/blog\/pied-a-terre-tax\/\" \/>\n<meta property=\"og:site_name\" content=\"Real Estate Topics, Tips, and Guides\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/renthopapartments\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-11T19:00:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.renthop.com\/blog\/wp-content\/uploads\/2026\/08\/jakub-zerdzicki-8wLZi9OhsWU-unsplash-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1708\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"rohan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@renthop\" \/>\n<meta name=\"twitter:site\" content=\"@renthop\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rohan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.renthop.com\\\/blog\\\/pied-a-terre-tax\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.renthop.com\\\/blog\\\/pied-a-terre-tax\\\/\"},\"author\":{\"name\":\"rohan\",\"@id\":\"https:\\\/\\\/www.renthop.com\\\/blog\\\/#\\\/schema\\\/person\\\/85f597b7e8586e21d7b42e099e1a40a9\"},\"headline\":\"What to Know About the New Pied-\u00e0-Terre Tax\",\"datePublished\":\"2026-08-11T19:00:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.renthop.com\\\/blog\\\/pied-a-terre-tax\\\/\"},\"wordCount\":1220,\"publisher\":{\"@id\":\"https:\\\/\\\/www.renthop.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.renthop.com\\\/blog\\\/pied-a-terre-tax\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.renthop.com\\\/blog\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/jakub-zerdzicki-8wLZi9OhsWU-unsplash-scaled.jpg\",\"articleSection\":[\"RentHop\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.renthop.com\\\/blog\\\/pied-a-terre-tax\\\/\",\"url\":\"https:\\\/\\\/www.renthop.com\\\/blog\\\/pied-a-terre-tax\\\/\",\"name\":\"What to Know About the New Pied-\u00e0-Terre Tax - 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