Governor Hochul Announces Pied-à-terre Tax Proposal for Luxury Second Homes Valued at $5 Million or More

Governor Kathy Hochul today proposed a pied-à-terre tax to support Mayor Zohran Mamdani’s efforts to close New York City’s budget gap. The proposal targets luxury second homes in New York City valued at $5 million or more, allowing the city to levy a yearly tax surcharge aimed at ultrawealthy, non-New York City residents. As New York City faces a significant budget gap, the Governor’s proposal will generate much needed revenue for the city without impacting every day New Yorkers.

The proposal is expected to generate at least $500 million a year in recurring revenue for the City. It builds on the Governor’s recent announcement that the state will provide an additional $1.5 billion for New York City in the FY2027 budget. As part of ongoing discussions, the City of New York has also committed to achieving significant savings in order to balance its budget.

In addition, earlier this year, Governor Hochul announced $1.7 billion in increased funding for universal child care, which included $1.2 billion directly for New York City’s launch of 2-care and expansion of 3-K. The Governor has increased funding support to New York City by 33 percent since taking office.

“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,” Governor Hochul said. “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.”