📊 How much would I save by selling my NYC secondary home before the 2028 tax reset?

New York's new luxury home tax is a major hit to anyone holding a secondary property in the city. As Julian News Report explains, the April pitch was $5 million penthouse, global elites, empty trophy homes, but the law that actually passed reaches much further down. Use this calculator to forecast your true carrying costs and decide if it makes sense to keep your money parked in New York or sell before the 2028 tax reset.

To calculate your exposure, we first need to determine how the city values your property. New York assesses condos and co-ops based on hypothetical rental income, not actual market prices. As Julian News Report points out, the city prices luxury condos and co-ops off the rent they could hypothetically earn instead of what anyone actually paid.

This means high-end homes often sit on the tax rolls at a tiny fraction of what they're worth. In extreme cases, they are valued as low as 4 cents on the dollar.

The tax has two very different phases. Phase 1 targets non-primary homes based on their assessed value. As Julian News Report notes, for the first two tax years, any condo or co-op that the city's Department of Finance values above just $1 million, and that isn't the owner's primary home, gets hit with a yearly surcharge.

The rate is 4% on homes the city values between 1 and 3 million, 5 and 1/4% from 3 to 5 million, and 6 and 1/2% above that.

The real danger arrives in a few years when the assessment rules completely change. As Julian News Report warns, then, in 2028, the rules flip. Valuation switch to actual market prices, and the rates drop to between 0.8% and 1.3%.

Because your actual market price is usually much higher than your assessed value, this creates a massive liability for everyday owners.

Don't forget the baseline expenses you are already carrying. As Julian News Report puts it, this new penalty is stacked on top of the property taxes and maintenance you already pay for the crime of not sleeping there.

Enter your current annual costs to see your total cost of ownership under both tax phases.