Hochul Proposes Taxes on NYC Second Homes Worth Over $5M

The governor's plan aims to target the ultra-wealthy with a new 'pied-à-terre' tax.

Apr. 15, 2026 at 2:19am

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A photorealistic painting of a tall, sleek glass and steel high-rise apartment building in an urban setting, with the building bathed in warm, golden sunlight from one side and deep shadows on the other, creating a sense of solitude and quiet contemplation.The proposed 'pied-à-terre tax' on luxury second homes in New York City aims to have the ultra-wealthy contribute more to the city's fiscal needs.NYC Today

New York Governor Kathy Hochul has proposed adding an annual surcharge on second homes in New York City that are valued at $5 million or more. The so-called 'pied-à-terre tax' is aimed at the ultra-wealthy who own multiple high-priced properties in the city. The proposal comes as the state faces federal Medicaid cuts and the new mayor of New York City, Zohran Mamdani, is pushing for a $5.4 billion bailout and higher taxes on corporations and high-income households.

Why it matters

The pied-à-terre tax is intended to generate additional revenue for New York City and the state, which are facing budget challenges. However, the real estate industry has criticized the proposal, arguing it will weaken the city's broader economy and lower property values without addressing the underlying fiscal problems.

The details

Under Hochul's proposal, the pied-à-terre tax would apply to second homes in New York City valued at $5 million or more. The tax would increase for homes valued at $15 million and again at $25 million. It's estimated the tax would affect around 13,000 homes in the city. The Real Estate Board of New York has criticized the plan, saying it will negatively impact property values and the city's economy.

  • Governor Hochul has floated the pied-à-terre tax proposal in 2026.

The players

Kathy Hochul

The governor of New York who has proposed the pied-à-terre tax on high-value second homes in New York City.

Zohran Mamdani

The mayor of New York City who is pressing Albany for a $5.4 billion bailout and calling for higher taxes on corporations and high-income households.

James Whelan

The president of the Real Estate Board of New York, which has criticized Hochul's proposed tax as weakening the city's economy and lowering property values.

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What they’re saying

“If you can afford a multi-million dollar second home in New York City, you can afford to join its residents in supporting the greatest city in the world.”

— Kathy Hochul, Governor of New York

“This annual tax will weaken the city's broader economy — all without addressing its fiscal problems in the first place. Its impact will reach far beyond a small group of owners.”

— James Whelan, President, Real Estate Board of New York

What’s next

The proposed pied-à-terre tax will need to be approved by the New York State legislature before it can be implemented.

The takeaway

Hochul's pied-à-terre tax proposal is a controversial measure aimed at generating additional revenue from the ultra-wealthy who own multiple high-value properties in New York City. While the tax is intended to address the state's fiscal challenges, the real estate industry has warned it could have broader negative impacts on the city's economy and property values.