New York Proposes Tax on $5M+ Second Homes

Governor Hochul and Mayor Mamdani back new levy on luxury properties

Apr. 15, 2026 at 11:19pm

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A serene, cinematic painting of a towering luxury apartment building in New York City, with warm sunlight casting long shadows across the facade, conveying a sense of solitude and wealth.The proposed tax on luxury second homes aims to make New York City more affordable for less-wealthy residents.NYC Today

New York State Governor Kathy Hochul has proposed a new tax on second homes worth over $5 million, an initiative that is backed by New York City Mayor Zohran Mamdani. The measure is aimed at targeting wealthy out-of-town residents and global elites who use New York real estate as an investment vehicle rather than as primary residences.

Why it matters

This proposal is part of a broader effort by Mayor Mamdani to make New York City more affordable for less-wealthy residents by taxing the rich. While Governor Hochul has generally opposed tax hikes, she has supported this measure, which is expected to generate $500 million in annual revenue to help close the city's budget gap.

The details

The proposed tax would apply to second homes worth over $5 million that sit empty for much of the year. This targets high-profile property owners like hedge fund manager Ken Griffin, who in 2019 paid a record $238 million for a Manhattan penthouse. The measure is modeled on similar taxes implemented in countries like France, the UK, and Canada.

  • Governor Hochul announced the proposal on April 15, 2026.
  • Mayor Mamdani campaigned on a promise to tax the rich during his election last year.

The players

Kathy Hochul

The Governor of New York State who has proposed the new tax on luxury second homes.

Zohran Mamdani

The Mayor of New York City who has backed Governor Hochul's proposal as part of his effort to make the city more affordable.

Ken Griffin

The founder and CEO of the Miami-based hedge fund Citadel, who in 2019 paid a record $238 million for a Manhattan penthouse.

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What they’re saying

“If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker.”

— Kathy Hochul, Governor of New York State

“The measure targets ultrawealthy out-of-city residents and global elites who use New York City real estate as a vehicle for wealth storage rather than as homes.”

— Zohran Mamdani, Mayor of New York City

“New Yorkers deserved better policies than Mamdani's talking points.”

— Ken Griffin

What’s next

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

The takeaway

This tax proposal is a high-profile example of the growing political pressure on the ultra-wealthy to contribute more to address issues of affordability and inequality in major cities like New York. It remains to be seen whether the measure will gain enough support to be enacted into law.