NYC Proposes Pied-à-Terre Tax Targeting Billionaire Second Homes

Mayor Mamdani's new tax aims to generate $500 million annually from luxury non-primary residences.

Apr. 18, 2026 at 9:24am

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A serene, photorealistic painting of a towering luxury apartment building in New York City, with warm sunlight casting long shadows across the facade, conceptually representing the wealthy individuals who own these types of non-primary residences.The proposed pied-à-terre tax targets the owners of luxury second homes in New York City, many of whom are billionaires.NYC Today

New York City Mayor Zohran Mamdani has proposed a new 'pied-à-terre' tax that would target luxury second homes worth over $5 million owned by billionaires and other ultra-high-net-worth individuals, including Jeff Bezos, Donald Trump, and Ken Griffin. The tax, part of Governor Kathy Hochul's state budget proposal, is estimated to generate $500 million per year for the city.

Why it matters

The proposed tax is designed to generate revenue from wealthy individuals who own expensive non-primary residences in New York City, but do not pay income taxes as full-time residents. Proponents argue it will help address income inequality, while critics claim it could drive investment out of the city.

The details

The pied-à-terre tax would apply to homes worth more than $5 million that are not an owner's primary residence, including properties owned by those who live abroad, in other states, or elsewhere in New York. The state has not yet provided details on how home values or primary residency status would be determined. The tax would be levied on top of existing property taxes.

  • The pied-à-terre tax was proposed by Mayor Mamdani and Governor Hochul in April 2026.
  • If approved, the tax is expected to take effect in the 2026-2027 fiscal year.

The players

Zohran Mamdani

The mayor of New York City who introduced the proposed pied-à-terre tax.

Kathy Hochul

The governor of New York state who included the pied-à-terre tax in her state budget proposal.

Ken Griffin

The CEO of Citadel who owns a $238 million penthouse in New York City, one of the properties that would be subject to the proposed tax.

Jeff Bezos

The founder of Amazon, who is among the billionaires with luxury second homes in New York City that would be targeted by the pied-à-terre tax.

Donald Trump

The former U.S. president, who also owns a luxury apartment in New York City that would be subject to the proposed tax.

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What they’re saying

“This pied-à-terre tax is specifically designed for the richest of the rich.”

— Zohran Mamdani, Mayor of New York City

“Mamdani likes the tag line 'Tax the rich.' Unfortunately, his policies will harm the constituencies he is supposedly trying to help.”

— Bill Ackman

What’s next

The proposed pied-à-terre tax must be approved by the New York State legislature before it can take effect. If approved, the tax is expected to be implemented in the 2026-2027 fiscal year.

The takeaway

The pied-à-terre tax is a controversial proposal that aims to generate revenue from wealthy individuals who own expensive non-primary residences in New York City, but do not pay income taxes as full-time residents. While supporters argue it will help address income inequality, critics claim it could drive investment out of the city.