Hochul proposes pied-à-terre tax on NYC luxury second homes over $5M
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New York Mayor Zohran Mamdani welcomed a proposal to tax luxury second homes owned by the ultra-rich; This plan is expected to generate at least $500 million in revenue annually.
Earlier in the day, New York Governor Kathy Hochul announced a tax on luxury second homes valued at $5 million or more in New York City, allowing the city to impose an annual surcharge on nonresident ultra-rich.
The proposal is expected to generate at least $500 million in annual revenue, according to Hochul.
Mamdani praised the plan, saying he campaigned on taxing the rich.
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New York City Mayor Zohran Mamdani has backed a proposal to tax luxury second homes owned by nonresidents, targeting ultra-rich property owners. (Michael Nagle/Bloomberg via Getty Images)
“When I ran for mayor, I said I would tax the rich. Yes, today we tax the rich,” he said in a video published on X.
He said the tax was designed for the “richest of the rich,” meaning people who “hide their wealth in real estate in New York City but don’t actually live here.”
“This is a fundamentally unfair system that harms working New Yorkers,” Mamdani said. “It ends now.”
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New York Governor Kathy Hochul in New York on February 10, 2026. (Spencer Platt/Getty Images)
He added that revenue from the tax would go towards initiatives such as free child care, cleaner streets and safer neighborhoods.
“As mayor, I believe everyone has a role to play in contributing to our city, and some play a little more of a role than others,” Mamdani said. he said.
“Happy Tax Day, New York.”
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New York City Mayor Zohran Mamdani speaks at Gouverneur Health in Manhattan to announce a series of new policy moves related to public health and taxes on February 3, 2026. (Spencer Platt/Getty Images)
According to the governor’s office, the tax will apply to residential properties in New York City that are not used as primary residences.
Hochul said the tax would “ensure that those who own luxury homes but do not live in the city or pay city income taxes can still contribute fairly to funding essential services like policing and parks that make New York City a global destination.”
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“This is not a tax on residents. This is very important. We’re talking about ultra-rich people,” he said at a news conference Wednesday.
Hochul added that the proposal would help generate revenue as the city faces budget constraints without impacting most residents.
