Hochul Proposes Pied-à-Terre Tax on NYC Second Homes Worth $5M+
Hochul Proposes Pied-à-Terre Tax on NYC Second Homes Worth $5M+
Gov. Hochul pitches a surcharge on multimillion-dollar pied-à-terre homes in NYC to fund city services, signaling a shift in tax policy amid budget pressures.
New York Gov. Kathy Hochul unveiled a compromise plan to tax multimillion-dollar pied-à-terre second homes in New York City, aiming to raise at least $500 million a year as the state budget faces a big gap. The proposal would let New York City impose a surcharge on secondary residences valued at more than $5 million, targeting properties that sit idle for much of the year while funding essential city services.
Under the plan, owners of these second homes would pay an annual levy, with revenue earmarked for city programs and services. The measure is pitched as a pragmatic way to stabilize finances without cutting core services that New Yorkers rely on, while asking the wealthiest property owners to contribute more.
Mayor Zohran Mamdani praised the policy, calling it a step toward taxing the ultra-wealthy and global elites and using the proceeds to support the city. Hochul framed the plan as a means to stabilize finances while preserving essential services New Yorkers count on.
The pied-à-terre tax is part of a broader budget package negotiated in Albany after missing an April 1 deadline. Supporters say it represents a needed revenue source from the wealthiest owners, while opponents worry it could chill investment and affect the city’s real estate market.
If approved, the measure would mark a significant shift in the city’s approach to taxation and real estate, signaling a willingness to tax assets that sit idle to fund public services.
