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 1:39pm

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A photorealistic painting of a tall, sleek luxury apartment building in New York City, with warm sunlight streaming through the windows and deep shadows cast across the facade, conveying a sense of solitude and exclusivity.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 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.”

— Gov. Kathy Hochul

“We will be taxing the ultra-wealthy and global elites.”

— Zohran Mamdani, New York City Council Speaker

“Kathy Hochul's 'No Tax Hike' promise has expired faster than the families fleeing New York's affordability crisis. Whether you're affluent or middle-class, Hochul and Mamdani are looking to hike your property taxes and take half your house through a new inheritance tax. It's a war on homeownership and the American Dream.”

— Bruce Blakeman, Long Island politician running for governor

“Coupled with the Council's proposals to secure additional revenue from the highest earners — including PTET changes and adjustments to the UBT/PIT credit — this is the comprehensive approach we need to strengthen the City's fiscal footing and tackle the affordability crisis without burdening working New Yorkers.”

— Julie Menin, New York City Council Speaker

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 proposed pied-à-terre tax on luxury second homes in New York City is a high-profile effort by Gov. Hochul and city leaders to generate significant new revenue to address the city's budget challenges and affordability crisis, though it faces pushback from some as an attack on homeownership.