NYC Mayor Mamdani Touts New $500M-a-Year Tax on Luxury Second Homes

The proposed 'pied-à-terre' tax targets ultra-wealthy non-residents who own high-end properties in the city.

Apr. 16, 2026 at 4:25am

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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 and surrounding cityscape, conveying a sense of solitude and exclusivity.The proposed 'pied-à-terre' tax aims to ensure that wealthy non-residents who own luxury properties in New York City contribute to funding essential city services.NYC Today

New York City Mayor Zohran Mamdani celebrated a proposal to tax luxury second homes owned by the ultra-wealthy, a plan expected to generate at least $500 million annually. Earlier, New York Gov. Kathy Hochul unveiled a 'pied-à-terre' tax on luxury second homes in New York City valued at $5 million or more, allowing the city to impose an annual surcharge on ultra-wealthy non-residents.

Why it matters

The new tax is designed to ensure that wealthy individuals who own luxury properties in New York City but do not live there or pay city income tax still contribute to funding essential city services. It aims to address concerns about housing affordability and the disproportionate impact of wealthy non-residents on the local real estate market.

The details

The proposed 'pied-à-terre' tax would apply to luxury second homes in New York City valued at $5 million or more. It is expected to generate at least $500 million in annual revenue for the city. Mayor Mamdani praised the plan, noting that he campaigned on taxing the wealthy and that the tax is designed for the 'richest of the rich' - people who 'store their wealth in New York City real estate but who don't actually live here'.

  • On April 16, 2026, New York Gov. Kathy Hochul unveiled the proposed 'pied-à-terre' tax.
  • Mayor Mamdani celebrated the proposal in a video posted on X on the same day.

The players

Zohran Mamdani

The mayor of New York City who campaigned on taxing the wealthy and praised the proposed 'pied-à-terre' tax.

Kathy Hochul

The governor of New York who unveiled the proposed 'pied-à-terre' tax on luxury second homes in New York City.

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What they’re saying

“'When I ran for mayor, I said I was going to tax the rich. Well, today, we're taxing the rich.'”

— Zohran Mamdani, Mayor of New York City

“'This is a fundamentally unfair system that hurts working New Yorkers. Now, it's coming to an end.'”

— Zohran Mamdani, Mayor of New York City

“'It is not a tax on residents. That is so important. We're talking about people who are ultrawealthy.'”

— Kathy Hochul, Governor of New York

What’s next

The proposed 'pied-à-terre' tax will now go through the legislative process in New York City and the state of New York. If approved, the tax could be implemented as early as 2027.

The takeaway

The new 'pied-à-terre' tax on luxury second homes in New York City is a significant step in the mayor's efforts to address housing affordability and ensure that the ultra-wealthy who own properties in the city but do not live there contribute their fair share to funding essential city services.