Hochul and Mamdani Announce Pied-à-Terre Tax to Raise About $500 Million

Governor Kathy Hochul and New York City Mayor Zohran Mamdani announced a pied-à-terre tax on non-primary residences valued over $5 million that they said will raise about $500 million annually.

The city faces a $5.4 billion budget deficit, and advocates said the projected $500 million from the pied-à-terre tax would cover roughly one-tenth of that shortfall.

Democratic socialists hailed the tax as a victory for their organizing, while business commentators warned the move could alienate investors and singled out billionaire Ken Griffin as an example.

Polls show 54 percent of voters want a tax hike on New York City residents making over $1 million, with support rising to 62 percent among city voters and 72 percent among Democrats.

Advocates and analysts said budget negotiations in Albany remain unresolved and urged broader measures next, including a pass-through entity tax and increased income and corporate taxes to raise recurring revenue.