Hochul Proposes Tax on NYC's Wealthy Second-Home Owners

New York governor seeks to impose surcharge on pricey pied-à-terre properties

Apr. 15, 2026 at 9:10am

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A serene, cinematic painting of a tall, elegant apartment building in New York City, with warm sunlight streaming through the windows and deep shadows cast across the facade, capturing a sense of solitude and exclusivity.Hochul's proposed tax on wealthy New Yorkers' second homes could impact the city's luxury real estate market.NYC Today

New York Governor Kathy Hochul has proposed a new tax on New York City homeowners who own a second home worth more than $5 million. The so-called 'pied-à-terre tax' would generate revenue from the ultra-wealthy who own luxury second properties in the city, though the exact amount is unclear. The proposal comes as Mayor Zohran Mamdani pushes for higher taxes on corporations and high-income earners to address the city's budget shortfall.

Why it matters

The pied-à-terre tax is aimed at the city's wealthiest residents who own multiple luxury properties, seen by some as an untapped revenue source. However, the real estate industry argues the tax could negatively impact property values and the broader economy. The debate highlights the ongoing tensions in New York over how to address inequality and fund critical public services.

The details

Hochul's proposal would impose an annual surcharge on second homes in New York City valued at $5 million or more. The tax would increase for homes worth $15 million and again at $25 million. It's based on a similar model implemented in Rhode Island. The Real Estate Board of New York has criticized the plan, arguing it will weaken the city's economy without significantly boosting revenue.

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

The players

Gov. Kathy Hochul

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

Mayor Zohran Mamdani

The socialist 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 earners.

James Whelan

The president of the Real Estate Board of New York, which has criticized Hochul's proposed tax as damaging to the city's economy.

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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

“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 would need to be approved by the New York State legislature before it could be implemented.

The takeaway

Hochul's pied-à-terre tax plan is the latest attempt to tap into the wealth of New York's elite to fund public services, though critics argue it could backfire by hurting property values and the broader economy. The debate reflects the ongoing tensions in the city over how to address inequality and raise revenue.