The threshold is DOF's value, not what you paid

The condominium and cooperative threshold is $1 million of DOF market value. For one- to three-family homes it is $5 million. Neither figure is a sale price, an appraisal, or a listing, and which of the two applies follows what the property is rather than its tax class: a condominium unit in a one- to three-unit building is in tax class 1 and still takes the $1 million condominium test.

How far below market does the value run?

DOF values Class 2 property by an income method rather than by comparable sales. The reported rule of thumb is that a $1 million DOF market value corresponds to roughly a $5 million apartment. That one fact explains most of the surprise in this program: owners read the threshold as a $1 million apartment and never expected the envelope.

For a cooperative, DOF imputes a per-unit value: the building's market value multiplied by the unit's share of total shares. The unit is not valued on its own terms in the first instance, which is worked through on co-op values.

Where do you check your number?

DOF published a supplemental market value roll on July 24, 2026 listing properties that may be subject, with Phase One values, and the final version is due December 31, 2026. Your own notice carries the value DOF used for it. How is the figure built, and what does it count? Valuation: how the number on the notice is set. If a sale is in prospect, the value travels with the property rather than with you: see buying or selling.

Challenging the value

Value disputes go to the New York City Tax Commission on Form TC107. The deadlines are March 1, 2027 for Class 2 and March 15, 2027 for Class 1, or 30 days after DOF's final determination, whichever is later. The form and what it asks for are on Form TC107, the value path.

An unsettled piece for cooperatives

The Tax Commission has no established procedure for unit-level cooperative valuation protests, and practitioners have flagged that as unresolved. It matters because the surcharge on a covered unit is assessed against the cooperative corporation while the value driving it is a per-unit imputation.

In 2028 the method changes

From July 1, 2028, cooperatives and condominiums are valued by comparable sales, under a single $5 million threshold with the Class 1 rate ladder. Units sitting below the line on today's income-method value are not automatically below it then.