NYC Unveils First Pied-à-Terre Tax for Elite Owners

The new tax targets wealthy out-of-city residents and global elites who use NYC real estate as a vehicle for wealth storage.

Apr. 16, 2026 at 2:00am

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A serene, photorealistic painting of a solitary luxury high-rise apartment building bathed in warm, diagonal sunlight and deep shadows, conveying a sense of quiet contemplation and the disconnect between the wealthy and the working class.The pied-à-terre tax targets the ultrawealthy who use New York City real estate as an investment rather than a home, aiming to generate much-needed revenue for public services.NYC Today

New York City Mayor Zohran Kwame Mamdani and Governor Kathy Hochul have announced the proposal of the state's first pied-à-terre tax, a surcharge on one to three family homes, condominiums and co-ops valued above $5 million when owners have a separate primary residence outside of New York City. The measure is projected to generate $500 million in annual revenue from some of the most expensive residences in the country, including properties owned by billionaires and global oligarchs.

Why it matters

The pied-à-terre tax is a major step toward closing New York City's budget gap while ensuring that the wealthy contribute their fair share to support public services that benefit all New Yorkers. For years, leaders have proposed similar measures to address the issue of ultra-wealthy non-residents using NYC real estate as an investment vehicle rather than a home.

The details

The pied-à-terre tax will levy an annual surcharge on high-value properties owned by those who have a separate primary residence outside of New York City. This 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. The tax is projected to generate $500 million in annual revenue, including from some of the most expensive residences in the country such as billionaire Ken Griffith's $238 million penthouse and Russian auto-dealer Alexander Varshavsky's $20.5 million property.

  • The pied-à-terre tax proposal was announced on April 16, 2026.

The players

Zohran Kwame Mamdani

The Mayor of New York City who announced the proposal of the pied-à-terre tax.

Kathy Hochul

The Governor of New York who is supporting the pied-à-terre tax proposal.

Ken Griffith

A billionaire who owns a $238 million penthouse in New York City, one of the most expensive homes sold in the United States.

Alexander Varshavsky

A Russian auto-dealer who owns a $20.5 million property in New York City, purchased in cash.

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What they’re saying

“Thanks to the support of Governor Hochul, we are one step closer to balancing our budget by taxing the ultra-wealthy and global elites with a pied-à-terre tax - the first of its kind in our state. Alongside the governor, our administration is fighting every day to make sure we address this fiscal deficit fairly, where the wealthy contribute what they owe and our budget reflects our commitment to the working New Yorkers being priced out of our city.”

— Zohran Kwame Mamdani, Mayor of New York City

“New York City is the greatest city in the world, and the people who call it home should not be left carrying the burden alone. 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

What’s next

The pied-à-terre tax proposal will now go through the legislative process in New York State, with the goal of being enacted into law.

The takeaway

The pied-à-terre tax represents a significant step toward addressing income inequality and ensuring that the wealthy pay their fair share to support essential public services in New York City. By targeting non-resident owners of high-value properties, the tax aims to generate much-needed revenue while also discouraging the use of NYC real estate as an investment vehicle rather than a home.