New York Governor Kathy Hochul and Mayor Zohran Mamdani have announced the state’s first “pied-à-terre tax,” targeting luxury second homes valued over $5 million owned by non-residents.
“New York City is the greatest city in the world, and the people who call it home should not be left carrying the burden alone. As Governor, I understand the importance of stabilizing the city’s finances without compromising on essential services New Yorkers count on. If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker,” said Governor Kathy Hochul.
The proposal aims to raise roughly $500 million annually by taxing wealthy property owners who use NYC real estate as secondary or investment homes, with revenues intended to help close the city’s budget gap and fund public services like housing and childcare. The plan still requires approval from the state legislature and is being framed as a measure to increase fairness and ensure ultra-wealthy owners contribute to city infrastructure.
