ALBANY — Gov. Kathy Hochul is proposing a new tax on high-end second homes in New York City as part of an effort to help close the city’s budget gap without raising costs for residents.
The plan would impose an annual surcharge on non-primary residences valued at $5 million or more, targeting wealthy individuals who own property in the city but do not live there full-time or pay local income taxes.
State officials estimate the proposal could generate at least $500 million annually in recurring revenue for New York City, which is facing a significant fiscal shortfall. The measure is designed to ensure non-resident property owners contribute to services such as public safety, parks and infrastructure.
The proposed “pied-à-terre” tax would apply only to properties that are not used as a primary residence, rented to full-time tenants, or occupied by family members. Supporters say it would capture revenue from high-value properties that often sit vacant for much of the year.
Hochul framed the proposal as a matter of fairness, arguing that ultra-wealthy property owners should help support the city’s financial stability. The plan aligns with broader efforts by city leaders to balance the budget through a mix of new revenue and spending reductions.
The proposal has drawn support from several New York City officials, who say it would help fund essential services without placing additional burden on working residents.
If approved, the tax would mark a significant shift in how New York targets high-end real estate as part of its fiscal strategy.
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