ADVERTISEMENT
ADVERTISEMENT
Mamdani targets ultra-rich with second home tax
The proposal will raise $500 million and work toward tackling the city’s $5.4 billion estimated budget deficit.
-
Jeffin T. Kaleekal - Thu, 16, Apr 2026
- 00:08 EDT
- 17
NYC Mayor Zohran Mamdani / Wikimedia commons
After months of strife between New York Governor Kathy Hochul and NYC Mayor Zohran Mamdani on taxing the rich, a campaign promise that was key to the latter’s election victory, the two seem to finally agree on taxing the ultra-rich who own a second home worth over $5 million.
Hochul, who is running for re-election this year, has shown restraint in backing Mamdani’s ‘Tax the Rich’ proposals but she has lent her support to the proposal of an annual surcharge on one- to three-family homes, condominiums and co-ops valued above $5 million when owners have a separate primary residence outside of New York City.
Announcing the shift, Mamdani said on X, “When I ran for mayor, I said I was going to tax the rich. Well today, we're taxing the rich. I'm thrilled to announce we've secured a pied-à-terre tax, the first in New York's history.”
ALSO READ: New York's Mamdani touts 'socialist' plans 100 days in
Explaining the proposal, he continued, “This is an annual fee on luxury properties worth more than $5 million, whose owners do not live full-time in the city...This pied-à-terre tax is specifically designed for the richest of the rich, those who store their wealth in New York City real estate, but who don't actually live here.”
Mamdani also noted that these homes usually end up sitting empty and this hurts the average working New Yorkers.
Mamdani believes that this would help the city raise close to $500 million in annual revenue and would target the American billionaires but also target thousands of properties “owned by foreign oligarchs and the global ultrarich.”
He added on X that if his proposed tax comes into effect, it'll help “fund things like free child care, cleaner streets, and safer neighborhoods.”
Happy Tax Day, New York. We’re taxing the rich. pic.twitter.com/Wky2LFXC9W
— Mayor Zohran Kwame Mamdani (@NYCMayor) April 15, 2026
The proposal will go a long way in Mamdani’s ability to tackle the massive $5.4 billion estimated budget deficit that the city faces.
Governor Hochul described the tax as an attempt at “stabilizing the city’s finances without compromising on essential services New Yorkers count on.”
She continued, “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,” said Governor Kathy Hochul.
Related
ADVERTISEMENT
ADVERTISEMENT
E Paper
Video
Comments
Start the conversation
Become a member of New India Abroad to start commenting.
Sign Up Now
Already have an account? Login