September 30, 2026

If you own a second home in Manhattan, the pied-à-terre tax story took a major turn this week. A New York State Supreme Court judge ruled that the city’s rollout of the tax was flawed and ordered the Department of Finance (DOF) to go back and redo the process. Here’s what happened, what it means for owners, and what we’re watching next.

What Happened

This summer, the DOF mailed notices to roughly 17,000 property owners flagging them as possibly owing the new pied-à-terre tax. On September 29, a judge found that the city moved to collect the tax before properly determining who actually owes it.

As a result, the notices sent this summer have been invalidated, and the city must issue new ones. Those new notices must also disclose the records the city used to decide that a home is not the owner’s primary residence.

What This Means for Manhattan Second-Home Owners

The tax itself is still law. This ruling addresses how the tax was rolled out, not whether it is legal. Owners of qualifying non-primary residences should still expect the tax to apply.

Your July notice no longer stands. If you received a notice this summer, it has been thrown out. If you are still considered potentially eligible, expect a new notice from the city.

The city has to show its work. New notices must explain what records were used to classify a property as a non-primary residence. That gives owners a clearer basis for reviewing, and if appropriate, challenging their status.

What’s Next

The city plans to appeal. City officials have said they will appeal the decision and ask the court to pause the ruling while the appeal moves forward. That means the timeline could shift again.

A second lawsuit is in play. A separate case filed in Suffolk County by out-of-state owners challenges whether the tax is constitutional, arguing that it discriminates against people who don’t live in New York City. That case is at a much earlier stage.

No bills yet. According to reports, the city has told the court it won’t send invoices before November 15.

Our Advice: Stay Calm and Watch Your Mail

This is a fast-moving story, and headlines can make it feel more urgent than it is for most owners. For now, the most important thing is to keep an eye out for any new mail from the Department of Finance and to review it carefully when it arrives. If you believe your property is your primary residence, make sure your records reflect that.

We’ll continue to follow every development in the courts and at the DOF and share updates as they happen.

Frequently Asked Questions

Is the NYC pied-à-terre tax canceled?

No. The ruling found problems with how the city rolled out the tax, not with the tax itself. The tax remains law, although the city must redo its notices.

I received a pied-à-terre tax notice in July. Do I need to do anything?

The notices sent this summer have been invalidated. If the city still considers your property potentially subject to the tax, you should receive a new notice. Watch your mail and review any new notice carefully.

When will pied-à-terre tax bills go out?

According to reports, the city has said it won’t invoice owners before November 15. Because the city plans to appeal, that timeline could change.

Is there another lawsuit against the pied-à-terre tax?

Yes. A separate lawsuit filed in Suffolk County challenges whether the tax is constitutional. It is at an early stage.

Questions About Your Property?

If you’re wondering how the pied-à-terre tax and this ruling apply to your Manhattan home, The Stacey Froelich Team at Compass is here to help you think it through. Reach out anytime.

This post is for general informational purposes only and is not legal or tax advice. Please consult a qualified attorney or tax professional about your specific situation.