Bisnow: The Pied-à-Terre Tax Reaches the $26,000-a-Month Rental
The Roebling Report · By Corey Cohen · Principal, The Roebling Team at Compass
17.1%. That is the median rent increase a Manhattan condo owner would need to cover the potential pied-à-terre surcharge, per Same Rent, Different Return, our Roebling Index study. Bisnow published the findings first on November 5. On a median rent of $26,000 a month, that is $4,415 a month, or roughly two months of rent a year.
The research
The Roebling Team at Compass matched reported rents for 286 Manhattan condominiums, January 2025 through September 2026, to the Department of Finance's published valuations. It is a sample of the affected rental stock, not a census. Rental records from 2026 alone put the median increase at 15.4%. For 53% of the apartments the potential surcharge exceeded two months of rent; for 19%, three. The full method, limitations and unit-level table are in the study.
Our contribution to the article
The surcharge falls on secondary homes. An apartment leased to a tenant who lives there full-time can qualify for the primary-residence exemption; one leased as someone else's second home cannot. As I told Bisnow:
"Two tenants can offer the same rent and leave the owner with different income. That just fundamentally changes the economics of who an owner of one of these expensive apartments is renting to."
— Corey Cohen, principal of The Roebling Team at Compass, in Bisnow
That does not mean second-home tenants will pay the increase. It means the owner has a cost to price into every lease: pass it along, share it, or absorb it.
Where it stands
The first charges are due on the January 1, 2027 property tax bill. The appeals court cleared the city's rollout on November 4 (our note on that ruling); two constitutional challenges are still pending. For the ownership side, see the surcharge by building and what it does to Manhattan prices.
If you own an apartment over the threshold and lease it out, we can run the charge against your rent and lease terms. Contact The Roebling Team at Compass.
Read the full Bisnow article → · Read the Roebling Index study →
