Mamdani and Hochul propose a pied-à-terre tax for high-priced 2nd residences in NYC

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NYTimes

5 Things to Know About New York’s Proposed Second Home Tax
Gov. Kathy Hochul wants to tax second homes in New York City that are worth $5 million or more. Here’s how the proposal might work.
By Ronda Kaysen
April 15, 2026

City and state politicians are lining up behind Gov. Kathy Hochul’s plan to tax New York City second homes worth $5 million or more. The proposal, to be included in the state budget, aims to help close a city budget gap and to address growing income inequality by targeting the ultrawealthy who do not live in the city.

Similar ideas have been floated before, most recently in 2019, after Kenneth C. Griffin, a hedge fund billionaire, purchased a $238 million apartment on Central Park South. That effort was derailed by the real estate industry, which lobbied heavily against it.

But the political climate has shifted. Mayor Zohran Mamdani was elected in part by focusing on affordability and calling for relief for New Yorkers struggling to get by in the city.
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What is the pied-à-terre tax?
The tax on second homes, or pied-à-terre tax, would be a yearly surcharge on any New York City residential property worth $5 million or more that is not the owner’s primary residence.
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Who opposes it?
There was swift pushback from the powerful Real Estate Board of New York, the lobbyist group for the real estate industry. A banner across the top of its website reads, “Stop the pied-à-terre tax” and urged members to contact state representatives to voice opposition.

Critics argue that a tax would dampen demand from wealthy buyers who could instead decide to take their money to states with lower taxes, like Florida.

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