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Hochul floats tax on NYC second homes worth $5M or more
By
Giulia Heyward
and
Jon Campbell
Published Apr 14, 2026
Modified Apr 16, 2026
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Will Waldron/Albany Times Union via Getty Images
By
Giulia Heyward
and
Jon Campbell
Published Apr 14, 2026
Modified Apr 16, 2026
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New York Gov. Kathy Hochul is proposing additional taxes on homeowners with second homes worth $5 million or more.
The idea targets a long-debated practice in which wealthy buyers purchase high-end properties that are not their primary residences and pay relatively low taxes compared to full-time New York residents.
In recent years, some New Yorkers have raised concerns about the number of luxury apartments in the city that remain largely vacant, with critics arguing that some owners pay less overall in taxes than residents who live and work in the city full-time.
Hochul’s announcement comes as she and lawmakers in Albany are already weeks late on delivering the next state budget, despite the governor having put out her budget proposal for the upcoming fiscal year three months ago.
In recent weeks, New York City Mayor Zohran Mamdani has said he would consider raising property taxes if lawmakers in Albany do not approve new taxes on the wealthy to help address the city’s fiscal challenges.
The governor‘s new proposal is a shift. She had previously resisted Mamdani’s calls to raise taxes on the rich and corporations, saying she did not want to drive wealthy people out of the state.
While additional details still need to be worked out with state lawmakers and New York City officials, the proposed tax would likely involve different rates across multiple brackets.
Hochul’s budget team estimates it could generate at least $500 million in recurring revenue each year.
The governor’s office confirmed the proposal to Gothamist on Tuesday evening.
“New York City is the greatest city in the world, and the people who call it home should not be left carrying the burden alone,” Hochul said in a statement. “If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker.”
Mamdani praised the proposal as a step toward closing the city’s budget gap.
“Thanks to the support of Governor Hochul, we are one step closer to balancing our budget by taxing the ultra-wealthy and global elites with a pied-à-terre tax — the first of its kind in our state," Mamdani said in a statement. "Alongside the governor, our administration is fighting every day to make sure we address this fiscal deficit fairly, where the wealthy contribute what they owe and our budget reflects our commitment to the working New Yorkers being priced out of our city."
Some progressive groups also welcomed the move as a sign of growing support for taxing wealthy property owners.
“Tonight’s announcement only increases our resolve to raise billions in revenue in this year’s budget with taxes on the ultra-rich and largest corporations to deliver an economy that works for the working class,” said Gustavo Gordillo, who co-chairs the New York City Democratic Socialists of America.
David Brand contributed reporting.
Correction: This story has been updated to reflect when Gov. Kathy Hochul released her budget proposal for the fiscal year.
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Politics
new york state
Giulia Heyward
Giulia Heyward is a breaking news reporter on the Day-Of desk. She previously worked at NPR, as a breaking news reporter, and the New York Times, as a reporting fellow on the national desk. Her work has also appeared in CNN, The Atlantic and Politico. Got a tip? Email [email protected] or more securely on signal at 917-715-1458.
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Jon Campbell
Jon Campbell covers the New York State Capitol for WNYC and Gothamist. Prior to that, he covered the Capitol for more than a decade for the USA TODAY Network. He has twice earned the Walter T. Brown Memorial Award, an honor given annually by the Legislative Correspondents Association alumni for outstanding state government coverage. Jon grew up in the Buffalo area and graduated from the University at Albany. Got a tip? Email Jon at [email protected] or Signal at JonCampbellNY.90.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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