- Today
- Holidays
- Birthdays
- Reminders
- Cities
- Atlanta
- Austin
- Baltimore
- Berwyn
- Beverly Hills
- Birmingham
- Boston
- Brooklyn
- Buffalo
- Charlotte
- Chicago
- Cincinnati
- Cleveland
- Columbus
- Dallas
- Denver
- Detroit
- Fort Worth
- Houston
- Indianapolis
- Knoxville
- Las Vegas
- Los Angeles
- Louisville
- Madison
- Memphis
- Miami
- Milwaukee
- Minneapolis
- Nashville
- New Orleans
- New York
- Omaha
- Orlando
- Philadelphia
- Phoenix
- Pittsburgh
- Portland
- Raleigh
- Richmond
- Rutherford
- Sacramento
- Salt Lake City
- San Antonio
- San Diego
- San Francisco
- San Jose
- Seattle
- Tampa
- Tucson
- Washington
Hochul Defends New Pied-à-Terre Tax as Mamdani and DSA Allies Claim Credit
Governor's tax proposal on luxury second homes draws criticism from real estate industry
Apr. 15, 2026 at 10:53pm
Got story updates? Submit your updates here. ›
The pied-à-terre tax proposal has sparked a heated debate over how to address New York City's budget and affordability challenges.NYC TodayNew York Governor Kathy Hochul announced a new pied-à-terre tax on luxury second homes worth $5 million or more in New York City, drawing praise from Mayor Zohran Mamdani and his Democratic Socialists of America allies who have been pushing for higher taxes on the wealthy. However, the real estate industry has condemned the proposal, warning it will cause significant economic harm. Hochul defended the tax, saying those who can afford multi-million dollar second homes can afford to contribute more, but critics accused her of flip-flopping on her no-new-taxes pledge.
Why it matters
The pied-à-terre tax proposal highlights the ongoing tensions between the progressive wing of the Democratic party, represented by Mayor Mamdani and the DSA, and the more moderate Hochul administration. It also reflects the broader debate over how to address New York City's budget deficit and affordability crisis, with the left pushing for higher taxes on the wealthy while the governor has resisted such measures.
The details
Hochul's pied-à-terre tax would target about 13,000 secondary residences worth at least $5 million in New York City, with the goal of generating at least $500 million in annual revenue to help fill the city's $5.4 billion budget deficit. The specifics of the tax rates are still being negotiated, but it would likely involve a scale based on property values, increasing for homes worth $15 million and again for those worth at least $25 million. Homes listed as vacant or vacation properties would be targeted, while rental units and owner-occupied homes would be exempt.
- Hochul announced the pied-à-terre tax proposal in mid-April 2026.
- The proposal still needs to be approved by the state Legislature as part of the ongoing state budget negotiations.
The players
Kathy Hochul
The Democratic governor of New York who is proposing the new pied-à-terre tax.
Zohran Mamdani
The Democratic mayor of New York City who has been pushing for higher taxes on the wealthy, including a pied-à-terre tax, and is now claiming credit for Hochul's proposal.
Democratic Socialists of America (DSA)
The left-wing political organization that has been advocating for higher taxes on the rich and is allied with Mayor Mamdani.
James Whelan
The president of the Real Estate Board of New York, which has condemned the pied-à-terre tax proposal as causing significant economic harm.
Ken Griffin
The billionaire investor whose $238 million Manhattan penthouse was featured in a video by Mayor Mamdani celebrating the pied-à-terre tax proposal.
What they’re saying
“When I ran for mayor, I said I was gonna tax the rich. Well, today, we're taxing it.”
— Zohran Mamdani, Mayor of New York City
“This proposal overpromises revenue while ignoring the real economic damage it would cause.”
— James Whelan, President, Real Estate Board of New York
“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
What’s next
The pied-à-terre tax proposal still needs to be approved by the state Legislature as part of the ongoing state budget negotiations.
The takeaway
Hochul's pied-à-terre tax proposal highlights the ongoing tensions between the progressive and moderate wings of the Democratic party in New York, as well as the broader debate over how to address the city's budget and affordability challenges. While the tax is intended to generate revenue from the wealthy, the real estate industry has warned it could have significant economic consequences.
