Mamdani, Hochul Aim to Tax Luxury Second Homes in NYC: What to Know

Officials hope the tax will help close New York’s $5.4 billion budge deficit. Opponents say it would hurt home values and eliminate construction jobs.

A woman sits on the grass near Belvedere Castle in Central Park in New York City on April 17, 2026. Timothy A. Clary/AFP via Getty Images

City and state officials in New York are supporting a plan to tax luxury second homes valued at $5 million or more.

Gov. Kathy Hochul proposed a so-called pied-à-terre tax to help New York City address its $5.4 billion budget deficit, offering an alternative to Mayor Zohran Mamdani’s call for a higher income tax rate on millionaires and corporations to help close the gap.