Hochul Proposes Pied-à-Terre Tax on NYC's Luxury Second Homes

The governor aims to raise $500 million annually for the city by taxing non-resident owners of properties worth over $5 million.

Apr. 15, 2026 at 6:39pm

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A photorealistic painting of a tall, sleek luxury apartment building in New York City, with warm sunlight casting long shadows across the facade and windows. The scene conveys a sense of solitude and quiet contemplation about the role of high-end real estate in the city's affordability crisis.The proposed pied-à-terre tax on non-resident owners of multi-million dollar NYC second homes aims to generate new revenue for the city, but faces criticism as an attack on homeownership.NYC Today

New York Gov. Kathy Hochul is expected to propose a tax on second homes in New York City that are worth more than $5 million, according to sources. The pied-à-terre tax would target non-residents and is expected to raise at least $500 million annually for the city. The proposal is still being negotiated as part of the state budget, with details like a potential sliding scale based on property value still being worked out.

Why it matters

The pied-à-terre tax is aimed at addressing New York City's affordability crisis and $5.3 billion budget gap. Proponents argue that those who can afford multi-million dollar second homes in the city should contribute more to support vital public services, while critics claim it's a 'war on homeownership' that will drive more people and businesses out of the state.

The details

Under the proposed pied-à-terre tax, owners of NYC second homes worth over $5 million would be subject to a new surcharge. The governor hopes to raise at least $500 million annually from the tax. Officials are still determining if the tax will be on a sliding scale based on property value. The proposal will be negotiated as part of the state budget process.

  • The pied-à-terre tax proposal is expected to be included in Gov. Hochul's 2026-2027 state budget negotiations.

The players

Gov. Kathy Hochul

The governor of New York who is proposing the pied-à-terre tax on luxury second homes in New York City.

Zohran Mamdani

The New York City Council Speaker who has called for taxing the wealthy to address the city's budget gap and affordability crisis.

Bruce Blakeman

A Long Island politician running against Hochul for governor, who has criticized the pied-à-terre tax proposal as a 'war on homeownership.'

Julie Menin

The New York City Council Speaker who has endorsed the pied-à-terre tax proposal as a 'smart, sensible' way to generate revenue.

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What’s next

The pied-à-terre tax proposal will be negotiated as part of the 2026-2027 New York state budget process, with details like a potential sliding scale based on property value still being worked out.

The takeaway

The pied-à-terre tax proposal highlights the ongoing debate over how to address New York City's affordability crisis and budget challenges, with proponents arguing for higher taxes on the wealthy and critics warning of a 'war on homeownership' that could drive more people and businesses out of the state.