How much is the surcharge, exactly?
Updated 2026-08-04.
Phase One has two rate ladders, and the rate applies to the whole value once the threshold is crossed. That last part is the expensive part.
Two ladders, one for condominium and cooperative units, one for one- to three-family homes. Both apply for fiscal years 2026-27 and 2027-28.
| DOF market value | Rate on the entire value |
|---|---|
| $1M to under $3M | 4.00% |
| $3M to under $5M | 5.25% |
| $5M and over | 6.50% |
| DOF market value | Rate on the entire value |
|---|---|
| $5M to under $15M | 0.80% |
| $15M to under $25M | 1.05% |
| $25M and over | 1.30% |
It is a cliff, not a bracket
The rule preamble is explicit: "If a property or cooperative dwelling unit's valuation exceeds the threshold, the entirety of the property's value is subject to the surcharge." No first tier goes untaxed. A unit valued a dollar over $1 million is charged 4.00% on the whole value, not on the dollar.
One worked example
From a single notice, with everything identifying removed: a market value of $5,268,000 and an annual surcharge of $42,144.00. That is 0.80% of the value to the cent, the first band on the one- to three-family ladder. It is one property and not a rate schedule for yours, so run your own figure on the cost calculator.
Nothing offsets it
Existing abatements, credits and exemptions do not reduce the surcharge. It is billed on top, first on January 1, 2027 with the second semi-annual property tax installment, semi-annually after that.
The value in the formula is DOF's
Every figure above runs off DOF market value, not a sale price and not a broker's opinion. For condominiums and cooperatives that value comes from an income method running well below open-market prices, which is why the $1 million threshold reaches much further than it sounds. See wrong value, and, for a cooperative, why the number looks nothing like your apartment.
Phase Two, from July 1, 2028
Cooperatives and condominiums move to comparable-sales valuation, and a single $5 million threshold with the Class 1 rate ladder applies. The surcharge itself sunsets June 30, 2031.