New York State Considering New Tax On Luxury Second Homes

Governor Hochul backs proposal to target high-end properties owned by out-of-towners

Apr. 16, 2026 at 2:05pm

Got story updates? Submit your updates here. ›

A cinematic painting of a solitary luxury high-rise apartment building in warm, diagonal sunlight and deep shadows, conveying a sense of isolation and wealth.The proposed tax on high-end second homes in New York City aims to generate revenue from properties that are often under-taxed compared to their market value.NYC Today

Governor Kathy Hochul is proposing a new tax on certain high-value second homes in New York City. The plan would target luxury properties valued at $5 million or more that are owned by individuals whose primary residence is outside the city. State officials estimate the proposal could generate around $500 million in annual revenue to help address New York City's budget shortfall.

Why it matters

The proposed tax on luxury second homes is aimed at generating additional revenue from properties that are often undervalued compared to their market worth. While New York City Mayor Zohran Mamdani supports the plan, Governor Hochul has pushed back on broader tax hikes targeting high earners and large corporations.

The details

Under the proposal, homeowners with luxury properties in New York City valued at $5 million or more could face a new surcharge if their primary residence is outside the city. The idea is targeted at high-end second homes, often owned by wealthy individuals who split time between multiple residences.

  • Governor Hochul announced the proposal in April 2026.

The players

Governor Kathy Hochul

The current governor of New York State who is backing the proposed tax on luxury second homes.

Mayor Zohran Mamdani

The mayor of New York City who has voiced support for the proposal to tax high-value second homes.

Got photos? Submit your photos here. ›

What’s next

The proposal is still in the early stages and would need approval through the state budget process before becoming law.

The takeaway

The proposed tax on luxury second homes in New York City highlights the ongoing debate around how to generate revenue and address budget shortfalls, particularly in high-cost urban areas with a significant number of high-value properties owned by out-of-town residents.