New York Governor Proposing Tax on Second Homes Worth $5 Million or More

April 15, 2026 - 12:18

Governor Kathy Hochul has unveiled a proposal to levy an annual tax on extraordinarily high-value second homes in New York City. The measure specifically targets non-primary residences, or pieds-à-terre, valued at $5 million or more.

The governor's office estimates the new tax would generate approximately $500 million in annual revenue. This funding is positioned as a critical component in addressing a significant budget shortfall, aiming to help close New York City's looming $12 billion budget gap. Proponents argue the policy is a matter of equity, ensuring that wealthy part-time residents contribute more substantially to the city's services and infrastructure.

The proposal is expected to face scrutiny and debate in the state legislature. Critics may argue it could impact the high-end real estate market, while supporters will likely emphasize its role in securing essential municipal funding. If passed, the tax would represent a targeted effort to leverage the city's luxury housing sector to bolster its financial stability during a period of fiscal challenge.