United States: Property Taxes

While those upward bracket shifts may provide meaningful tax savings on higher-value properties, Washington’s Real Estate Excise Tax (“REET”) structure remains one of the most closely watched elements of transactional planning for commercial and residential property owners and developers. Because Washington applies a tiered, progressive REET rate system for real estate sales, alongside strict rules governing the transfer of controlling interests in entities that own real property, even minor statutory adjustments can drastically alter the economics of a transaction if deal timing or contract mechanics are mishandled.

A New York court has temporarily halted the implementation of New York City's pied-à-terre tax, ruling that the city's notices to homeowners were arbitrary and violated due process rights. The judge ordered the city to restart the entire rollout process while separate lawsuits challenge the tax's legality itself. Despite the stay, property owners who received notices are advised to continue filing for exemptions pending further court guidance.

A New York Supreme Court Justice has struck down the rollout of the pied-à-terre tax, ruling the Department of Finance's implementation plan arbitrary and capricious. The decision comes as two new constitutional challenges are filed against the tax, with prominent figures including former Commerce Secretary Wilbur Ross arguing it unconstitutionally targets nonresidents of New York City.

On August 13, 2026, New York City Council Member Pierina Sanchez introduced Intro. 1015-2026, legislation authorizing an expanded version of NYC’s J-51 property tax abatement program for alterations and improvements to qualifying condominium, cooperative and rental apartment buildings.[1] The Committee on Housing and Buildings will hold a public hearing on September 9th.

For Canadian and other non-U.S. sellers of U.S. real estate, the FIRPTA withholding regime has historically meant waiting months or even years to recover excess tax withholdings. Recent improvements in IRS processing times are making Form 8288-B withholding certificate applications an increasingly effective tool for accelerating the return of substantial funds.

New York City has implemented a significant annual surcharge on high-value residential properties that don't serve as primary residences, affecting second-home owners, foreign investors, and luxury property holders. The tax, which took effect July 1, 2026, applies graduated rates based on property valuations and is expected to generate approximately $500 million annually. Property owners face tight deadlines to claim exemptions and must navigate complex documentation requirements to prove primary residence

The New York State Legislature recently enacted the Pied‑à‑Terre Tax (PAT) Surcharge, introducing a significant, additional annual real estate tax on certain high-value New York City residential properties...

Now that we are halfway through 2026, we want to provide a summary of the proposed and enacted wealth taxes emerging in states and localities. Our mid-year update surveys six recent developments...

After years of advising cranberry bog owners, as well as serving as trustee for an 800-acre cranberry farm for eight years, the Supreme Judicial Court’s recent decision in Watermark LLC v. R H Benea Cranberry...