NYC Proposes Tax on Luxury Second Homes

The new pied-à-terre tax would target owners of NYC properties worth over $5 million who don't live there full-time.

Apr. 19, 2026 at 9:11am

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New York City Mayor Zohran Mamdani and Governor Kathy Hochul have introduced a proposal to tax luxury second homes in the city valued at over $5 million. The tax, which requires legislative approval, would affect residents who own a secondary property in New York City but live elsewhere. The goal is to generate $500 million in annual revenue to help address the city's multi-billion-dollar budget gap.

Why it matters

The proposed tax is aimed at addressing New York City's significant budget shortfall, which has been projected to reach $2.2 billion for the 2026 fiscal year and $10.4 billion for 2027. The revenue generated from the tax on high-value, non-resident properties is intended to fund essential city services like child care, street cleaning, and public safety.

The details

The pied-à-terre tax would be the first of its kind in New York state. It would impose a surcharge on owners of NYC properties valued at over $5 million who do not use the property as their primary residence. The specific tax rates are still being negotiated, with proposals for tiered rates based on property value. The state has not yet determined how home values and primary residency will be assessed.

  • The tax proposal was introduced by Mayor Mamdani and Governor Hochul on Wednesday, April 19, 2026.
  • The New York State Assembly and Senate must approve the measure as part of the broader state budget process.

The players

Zohran Mamdani

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

Kathy Hochul

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

Mark Levine

The New York City Comptroller who projected the city is facing a $2.2 billion budget shortfall for the 2026 fiscal year and a $10.4 billion gap for 2027.

Thomas P. DiNapoli

The New York State Comptroller who urged city officials to address the budget gap.

Donald Trump

The former U.S. President who owns properties in New York City and criticized the proposed tax.

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What they’re saying

“Sadly, Mayor Mamdani is DESTROYING New York! It has no chance! The United States of America should not contribute to its failure.”

— Donald Trump

What’s next

The proposed pied-à-terre tax must be approved by both the New York State Assembly and State Senate before it can be implemented. Lawmakers will discuss details such as the specific tax rates and how property values and primary residency will be determined.

The takeaway

The pied-à-terre tax proposal is a controversial measure aimed at addressing New York City's significant budget shortfall, with proponents arguing it will generate much-needed revenue for essential services, while critics claim it will further drive away the wealthy from the city.