New York Governor Proposes Pied-à-Terre Tax on Luxury Second Homes

Hochul aims to tax high-end vacation properties worth $5 million or more

Apr. 15, 2026 at 8:08pm

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A serene, realistic painting of a luxury high-rise apartment building in New York City, with a single figure visible in one of the windows, conveying a sense of solitude and the disconnect between the wealthy and the housing crisis.The pied-à-terre tax proposal aims to address the growing issue of housing affordability in New York by targeting wealthy individuals who own expensive vacation properties in the state.NYC Today

New York Governor Kathy Hochul has announced a proposal to implement a new 'pied-à-terre' tax on luxury second homes valued at $5 million or more. The tax is aimed at generating additional revenue from wealthy individuals who own expensive vacation properties in the state but do not reside there full-time.

Why it matters

The pied-à-terre tax is intended to address the growing issue of housing affordability in New York, where high-end vacation homes have driven up real estate prices and limited the availability of housing for full-time residents. The tax proposal is part of Hochul's broader efforts to make housing more accessible and equitable across the state.

The details

Under Hochul's proposal, owners of luxury second homes valued at $5 million or more would be subject to an annual tax. The tax rate would be set at a percentage of the home's value, with the exact rate still to be determined. The revenue generated from the tax would be used to fund affordable housing initiatives and other programs aimed at addressing the state's housing crisis.

  • Governor Hochul announced the pied-à-terre tax proposal on April 15, 2026.

The players

Kathy Hochul

The current Governor of the State of New York, who has proposed the new pied-à-terre tax on luxury second homes.

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What they’re saying

“We must take bold action to address the housing affordability crisis in New York. The pied-à-terre tax is a critical step in ensuring that everyone has access to safe, stable, and affordable housing.”

— Kathy Hochul, Governor of New York

What’s next

The proposed pied-à-terre tax will now go through the legislative process, where it will be debated and potentially amended before being voted on by the state legislature.

The takeaway

The pied-à-terre tax proposal is a significant policy initiative aimed at addressing the housing affordability crisis in New York. If implemented, it could generate substantial revenue for affordable housing programs and help make the state's real estate market more accessible to full-time residents.