NYC Mayor Proposes Pied-à-Terre Tax on Luxury Second Homes

President Trump criticizes the plan, claiming it will ruin the city

Apr. 18, 2026 at 12:41am

Got story updates? Submit your updates here. ›

A dimly lit, cinematic painting of a luxurious penthouse apartment, with warm sunlight streaming through the windows and deep shadows cast across the room, conceptually illustrating the debate over taxing luxury second homes in New York City.The proposed pied-à-terre tax aims to address the issue of wealthy individuals owning luxury properties in New York that sit vacant for most of the year.NYC Today

New York City Mayor Zohran Mamdani has announced a proposal to implement a new tax on luxury second homes, or pied-à-terres, owned by absentee residents. The plan has drawn criticism from former President Donald Trump, who claims the tax will 'destroy' the city.

Why it matters

The pied-à-terre tax is aimed at addressing the issue of wealthy individuals owning luxury properties in New York that sit vacant for most of the year, reducing the city's available housing stock. Proponents argue the tax could help fund affordable housing initiatives, but opponents claim it will drive away high-net-worth individuals and hurt the local economy.

The details

Under Mayor Mamdani's proposal, owners of luxury second homes valued at over $5 million would be subject to an additional annual tax. The revenue generated from the tax would be directed towards affordable housing programs in the city.

  • Mayor Mamdani announced the proposed pied-à-terre tax on April 18, 2026.

The players

Zohran Mamdani

The current mayor of New York City, who has proposed the pied-à-terre tax as a way to address the city's housing affordability crisis.

Donald Trump

The former President of the United States, who has publicly criticized Mayor Mamdani's proposed tax, claiming it will 'destroy' New York City.

Got photos? Submit your photos here. ›

What they’re saying

“Sadly, Mayor Mamdani is DESTROYING New York! It has no chance!”

— Donald Trump

What’s next

The proposed pied-à-terre tax will need to be approved by the New York City Council before it can be implemented.

The takeaway

The debate over the pied-à-terre tax highlights the ongoing tensions in New York City between addressing housing affordability and concerns from the city's wealthy elite about increased taxation. The outcome of this proposal could have significant implications for the future of the city's real estate market and its ability to provide affordable housing options for residents.