{"id":339,"date":"2026-05-28T21:39:59","date_gmt":"2026-05-28T21:39:59","guid":{"rendered":"https:\/\/reliablemovingcrews.com\/?p=339"},"modified":"2026-05-28T21:39:59","modified_gmt":"2026-05-28T21:39:59","slug":"new-york-state-budget-includes-new-york-city-tax-on-high-end-second-homes","status":"publish","type":"post","link":"https:\/\/reliablemovingcrews.com\/?p=339","title":{"rendered":"New York state budget includes New York City tax on high-end second homes"},"content":{"rendered":"
NEW YORK, May 28 (Reuters) – New York State Governor Kathy Hochul on Thursday signed a state budget that includes a progressive surcharge on luxury second homes in New York \u200bCity, a move backed by Mayor Zohran Mamdani and expected to generate $500 million per \u200cyear for the largest U.S. city.<\/div>
The new “pied-a-terre” tax – a French term for a secondary residence that translates as “foot on the ground” – faced criticism from billionaires Ken Griffin, Bill Ackman and Kevin O’Leary. Mamdani had called \u200bGriffin’s $238 million penthouse condominium overlooking Manhattan\u2019s Central Park a potential target of the \u200bproposal.<\/div>
The surcharge would generate approximately $500 million in annual revenue for New York \u2060City, according to a summary of the budget, which legislators approved late on Wednesday.<\/div>
The support \u200bfrom Hochul, who previously opposed tax hikes to fund Mamdani’s campaign promises, including “taxing the rich” \u200bto ease the lives of ordinary New Yorkers, marked a win for the New York City mayor as he seeks to close his city’s budget gap.<\/div>
“If you can afford a multi-million dollar second home in \u200bNew York City, you can afford to join its residents in supporting the greatest city \u200bin the world,” Hochul said last month on her Facebook account.<\/div>
The rate at which secondary homes are \u200ctaxed \u2060will slide based on the market value of the apartments that is currently understated for tax purposes under city law and represents only a fraction of their sales prices. The new budget ordered the city’s tax commission to review and correct all real property assessments.<\/div>
In the \u200bfirst two fiscal years, \u200b2026-2028, homes with \u2060the market values of $5 million to $15 million, $15 million to $25 million and more than $25 million will be taxed 0.8%, 1.05% and 1.3%, respectively, and \u200bsurcharge rates for apartments with the market value $1 million to $3 million, $3 \u200bmillion to $5 \u2060million and over $5 million will total 4%, 5.25% and 6.5%. Starting in fiscal year 2028, tax rates for the apartments will be reduced to the same level as for houses, according to \u2060the \u200bbudget.<\/div>
Properties will be considered primary residences, and therefore not \u200bsubject to the surcharge, if they are occupied by one of the owners, their immediate relatives – spouses, parents, children, \u200bsiblings, grandparents and grandchildren – or tenants.<\/div>