New York Governor Proposes Tax on Luxury Pied-à-Terres

Hochul seeks to raise funds for New York City without raising personal or corporate taxes

Apr. 16, 2026 at 12:18am

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A photorealistic painting of a tall, sleek luxury apartment building in New York City, with the facade bathed in warm, golden sunlight streaming in from the side, creating deep shadows that give the scene a contemplative, cinematic mood.Hochul's proposed tax on New York's elite pied-à-terres aims to generate revenue without driving away the wealthy.NYC Today

New York Governor Kathy Hochul has proposed a new tax on high-end secondary residences, or pied-à-terres, in New York City worth over $5 million. The tax surcharge aims to generate at least $500 million annually to help fill a multi-billion dollar budget gap in the city, without raising personal income or corporate taxes that Hochul fears could drive residents and businesses out of the state.

Why it matters

The proposal is a compromise between Hochul's resistance to broad tax hikes on the wealthy and progressive calls to 'tax the rich' more. It targets the ultra-wealthy who own luxury second homes in the city that sit vacant for much of the year, allowing them to benefit from New York's real estate market without fully contributing back to the city's finances.

The details

The new tax would allow New York City to impose a surcharge on secondary residences worth over $5 million. Hochul's office estimates this could generate at least $500 million per year to help Mayor Zohran Mamdani fill a multi-billion dollar budget hole and fund his agenda. Mamdani has pushed for broader tax increases on the rich, but sees this proposal as a step in the right direction.

  • Hochul announced the proposal on Wednesday, April 15, 2026.
  • The governor plans to include the pied-à-terre tax measure in this year's state budget, which is still being negotiated after missing the April 1 deadline.

The players

Kathy Hochul

The Democratic governor of New York who has resisted calls to raise taxes on the wealthy, but is now proposing a new tax on luxury second homes in New York City.

Zohran Mamdani

The Democratic mayor of New York City who has pushed for broader tax increases on the rich to help fill a multi-billion dollar budget gap and fund his agenda.

Bruce Blakeman

The Republican candidate for New York governor who has criticized Hochul's proposal as breaking her 'no tax hike' promise.

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What they’re saying

“As Governor, I understand the importance of stabilizing the city's finances without compromising on essential services New Yorkers count on. 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

“Kathy Hochul's 'No Tax Hike' promise has expired faster than the families fleeing New York's affordability crisis. Unlike Hochul, I'll actually keep my word when I'm governor: I'll cut your taxes, slash your utility bills in half, and protect the American Dream.”

— Bruce Blakeman, Republican Candidate for New York Governor

“This places me one step closer to balancing our budget by taxing the ultra-wealthy and global elites.”

— Zohran Mamdani, Mayor of New York City

What’s next

The proposal must still be included in the final state budget, which is currently being negotiated between Hochul and the state legislature. If approved, the new pied-à-terre tax would then need to be implemented by the New York City government.

The takeaway

Hochul's proposal represents a compromise between her resistance to broad tax hikes and progressive demands to 'tax the rich.' By targeting luxury second homes, she aims to raise significant revenue for New York City without driving out residents and businesses through higher personal income or corporate taxes.