NYC Pied-à-Terre Tax Targets Wealthy Second Home Owners

Mayor Mamdani's proposal aims to address city's budget deficit and housing affordability crisis.

Apr. 18, 2026 at 9:06am

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New York City Mayor Zohran Mamdani has proposed a 'pied-à-terre tax' that would charge owners of one- to three-family homes worth $5 million or more for having secondary residences in the city. The tax is intended to raise $500 million in annual revenue to help address the city's $5.4 billion budget deficit, while also tackling the housing affordability crisis driven by wealthy residents pricing out longtime New Yorkers.

Why it matters

The pied-à-terre tax is part of Mamdani's efforts to make the wealthy 'contribute what they owe' and ensure the city's budget 'reflects a commitment to working New Yorkers being priced out.' While praised by housing advocates, the proposal has drawn fierce backlash from some conservatives who see it as an attack on the wealthy.

The details

The pied-à-terre tax would apply to owners of one- to three-family homes worth $5 million or more who use the properties as secondary residences. According to the mayor's office, 93% of New Yorkers support such a tax. Housing advocates say it's a necessary step to correct a system that has 'tilted toward wealth over stability for everyday New Yorkers,' as the city has seen a surge in millionaires while lower-income residents are priced out.

  • On April 15, 2026, Mayor Mamdani and Governor Hochul announced the pied-à-terre tax proposal.
  • The tax is expected to generate $500 million in annual revenue if approved by the state government in Albany.

The players

Zohran Mamdani

The mayor of New York City who proposed the pied-à-terre tax as part of efforts to address the city's budget deficit and housing affordability crisis.

Kathy Hochul

The governor of New York who announced the pied-à-terre tax proposal alongside Mayor Mamdani.

Darius Gordon

The executive director for the Met Council on Housing, who stated that the pied-à-terre tax is a reasonable and necessary step to correct a system that has favored wealth over stability for everyday New Yorkers.

Donald Trump

The former U.S. president who criticized the pied-à-terre tax and other tax reforms proposed by Mayor Mamdani, likely because they would affect people like him who own expensive secondary homes in New York City.

Frank J. Fleming

A Twitter user who criticized people for getting excited about the wealthy being taxed more, receiving over 2,000 likes for his comment.

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What they’re saying

“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 Mamdani, Mayor of New York City

“Asking those who hold multimillion-dollar second homes, often sitting empty most of the year, to contribute more is not just reasonable, it's necessary. It's a step toward correcting a system that has long tilted toward wealth over stability for everyday New Yorkers.”

— Darius Gordon, Executive Director, Met Council on Housing

“Sadly, Mayor Mamdani is DESTROYING New York! It has no chance! The United States of America should not contribute to its failure. It will only get WORSE. The TAX, TAX, TAX Policies are SO WRONG.”

— Donald Trump

“Anyone who gets excited about other people getting taxed more is a pathetic, greedy little person and a bad American.”

— Frank J. Fleming, Twitter User

What’s next

The pied-à-terre tax proposal must be approved by the state government in Albany before it can be implemented. If passed, the tax is expected to generate $500 million in annual revenue for New York City.

The takeaway

New York City's pied-à-terre tax proposal highlights the ongoing debate around taxing the wealthy to address housing affordability and budget deficits. While praised by housing advocates, the plan has drawn fierce backlash from some conservatives who view it as an attack on the wealthy. The outcome of this proposal could set a precedent for other cities looking to implement 'tax the rich' policies.