New York Proposes Tax on Luxury Second Homes

Governor Hochul and Mayor Mamdani back plan to tax non-primary residences over $5 million.

Apr. 16, 2026 at 3:57am

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A photorealistic painting of a tall, sleek glass and steel high-rise apartment building in New York City, with the building bathed in warm, golden sunlight from one side and deep shadows on the other, creating a sense of solitude and quiet contemplation.The proposed tax on luxury second homes aims to address the use of New York real estate as an investment vehicle by wealthy non-residents.NYC Today

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

Why it matters

The proposed tax is part of an effort by the city and state to address housing affordability issues and generate additional revenue to help close budget gaps. It follows similar taxes implemented in other countries like France, the UK, and Canada on non-primary residences.

The details

Under the proposal, homes worth over $5 million that are not the owner's primary residence would be subject to an annual surcharge. The tax is expected to generate $500 million in revenue annually. Mayor Mamdani, a democratic socialist, campaigned on a promise to tax the rich, but has faced resistance from Governor Hochul, who generally opposes raising taxes in an election year.

  • Governor Hochul announced the proposed tax on April 16, 2026.

The players

Kathy Hochul

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

Zohran Mamdani

The Mayor of New York City who is backing Governor Hochul's proposal to tax non-primary residences worth over $5 million.

Ken Griffin

The founder and CEO of 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

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 new tax proposal is part of a broader effort by New York City and State leaders to address housing affordability issues and generate revenue from wealthy non-residents who use the city's real estate market as an investment rather than a place to live. It remains to be seen if the measure will gain enough political support to be enacted.