Data shows that around 59,000 housing units in 2023 were used only occasionally
New York is moving to tax ultra-wealthy property owners as leaders try to close a widening budget gap.
Governor Kathy Hochul and NYC Mayor Zohran Mamdani plan to introduce a pied-a-terre tax on second homes in New York City valued at $5 million or more. The proposal targets ultra-wealthy individuals and aims to raise about $500 million annually to help reduce the city’s projected $5.4 billion deficit next year.
How the tax will work
The surcharge will likely follow a sliding scale, with higher-value properties facing higher rates. Officials say the tax mainly targets wealthy individuals who keep second homes in the city but do not pay local income taxes because they live elsewhere.
Supporters argue the move ensures fairness by asking global elites to contribute more.
Data shows that around 59,000 housing units in 2023 were used only occasionally, highlighting the scale of underused luxury properties.
However, critics warn the tax could discourage investment and push wealthy buyers away.
Similar proposals in the past failed after strong opposition from developers, who argued such measures could hurt the city’s economy and generate less revenue than expected.