Hochul Proposes Tax on NYC Luxury 2nd Homes to Boost City Revenue

The plan aims to generate at least $500 million annually in recurring revenue for New York City.

Apr. 16, 2026 at 2:42am

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A serene, photorealistic painting of a towering glass and steel high-rise apartment building, its windows reflecting the warm glow of the setting sun, conveying a sense of urban isolation and wealth.The proposed 'pied-à-terre' tax on luxury second homes aims to ensure wealthy property owners contribute to New York City's municipal services.Buffalo Today

New York Governor Kathy Hochul has proposed a new 'pied-à-terre' tax on luxury second homes in New York City valued at $5 million or more. The measure is designed to ensure owners of these high-end properties who do not pay New York City income tax still contribute to municipal services.

Why it matters

New York City has faced budget challenges in recent years, and this new tax proposal aims to help stabilize the city's finances without compromising essential services. The tax would target owners of luxury second homes who do not use them as primary residences, requiring them to pay their fair share towards the city's infrastructure and public services.

The details

The proposed tax would apply to residential properties in New York City that are not used as a primary residence. Homes would qualify for the surcharge only if they are not the owner's main residence, are not rented to a primary resident, and are not occupied by the owner's family. State officials say this measure is designed to ensure owners of luxury homes who do not pay New York City income tax still contribute to municipal services.

  • On April 16, 2026, Governor Kathy Hochul announced the proposal for the new 'pied-à-terre' tax.

The players

Kathy Hochul

The Governor of New York who proposed the new tax on luxury second homes in New York City.

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What they’re saying

“As governor, I understand the importance of stabilizing the city's finances without compromising on essential services New Yorkers count on. If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker.”

— Kathy Hochul, Governor of New York

What’s next

The proposed tax will require approval from the New York State Legislature before it can be implemented.

The takeaway

This new tax proposal aims to generate much-needed revenue for New York City by requiring owners of luxury second homes who do not pay city income tax to contribute towards municipal services. It reflects the governor's efforts to find creative solutions to address the city's budget challenges without overburdening full-time residents.