Owners of high-value New York City second homes may face a substantial new annual tax burden. New York's newly enacted "pied-à-terre tax" (the tax), effective July 1, 2026, imposes an annual surcharge on certain non-primary residences in New York City, including one-to-three family homes, condominiums and cooperative apartments. While the tax is aimed at luxury second homes, it also applies to properties owned through trusts, LLCs and other entities, creating potential exposure for a broad range of owners.