New York Imposes Pied-à-Terre Tax on Luxury Homes

Mayor Zohran Mamdani and Governor Kathy Hochul announce new tax targeting wealthy out-of-state property owners

Apr. 19, 2026 at 1:48pm

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A fractured, abstract painting in shades of gray, blue, and green depicting the outline of a tall apartment building, representing the taxation of luxury properties owned by wealthy non-residents as part of a broader push for economic redistribution in New York City.A new tax on luxury 'pied-à-terre' properties owned by out-of-state residents is the latest effort by New York's left to redistribute the city's wealth.NYC Today

In a victory for the socialist left in New York, Mayor Zohran Mamdani and Governor Kathy Hochul have announced the implementation of a new 'pied-à-terre' tax targeting luxury homes valued at over $5 million that are owned by people whose primary residence is outside of New York City. The tax is expected to raise $500 million in revenue for the city.

Why it matters

The new tax is seen as a first step in a broader effort by the left to redistribute the city's wealth and make New York more affordable for working residents. It also represents a political victory for Mamdani and the socialist movement, which has been relentlessly campaigning to 'tax the rich' and force the governor's hand.

The details

The pied-à-terre tax will apply to houses, condos, and apartments valued at over $5 million that are owned by people whose primary residence is outside of New York City. While the specific tax rate has not been disclosed, Hochul and Mamdani say it will raise $500 million in revenue. The tax is viewed as a significant material gain for the city and an example of progressive taxation, though it is just a small part of the broader redistribution agenda sought by the left.

  • This week, Mayor Zohran Mamdani and Governor Kathy Hochul announced the new pied-à-terre tax.
  • The tax is expected to go into effect in the coming fiscal year.

The players

Zohran Mamdani

The democratic socialist Mayor of New York City who has been a driving force behind the push to tax the rich.

Kathy Hochul

The Governor of New York who has agreed to implement the new pied-à-terre tax, despite previously opposing tax hikes on the wealthy.

Gustavo Gordillo

A member of NYC-DSA who says the socialist movement has 'proven these establishment politicos wrong again' by forcing Hochul's hand on the tax.

Emily Eisner

The acting executive director and chief economist of the Fiscal Policy Institute, who called the pied-à-terre tax 'a significant material gain for the city' and a solid example of progressive taxation.

Charlie Heller

A socialist political consultant who argues that Governor Hochul should be framing the tax as a corrective to Trump's tax cuts on the wealthy, which have cost New York billions.

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What they’re saying

“The governor understands that there is an organized base and an organized majority in New York City that wants to make millionaires and corporations pay what they owe.”

— Gustavo Gordillo, Member, NYC-DSA

“This is a first step, but it's ultimately just 10 percent of the budget gap we need to fill.”

— Gustavo Gordillo, Member, NYC-DSA

“Instead of just taxing that money back to prevent massive cuts to health insurance, libraries, and food assistance, Governor Hochul is just keeping them in place. It's like they're the Trump-Hochul tax cuts.”

— Charlie Heller, Socialist political consultant

What’s next

Budget negotiations in Albany are ongoing, and the left is pushing for additional revenue measures such as a 'pass-through entity' tax that would primarily affect hedge funds and large law firms. Activists say more sweeping income and corporate tax increases on the wealthy will be needed to fully address the city's budget needs.

The takeaway

The new pied-à-terre tax represents a significant victory for the socialist left in New York, proving their ability to force the hand of establishment politicians like Governor Hochul. However, this is just the beginning of a longer-term effort to dramatically reshape the city's tax system and redistribute wealth to working residents.