Mayor Zohran Mamdani is implementing a new pied-à-terre tax to target ultrawealthy residents with secondary homes in New York City.
Mayor Zohran Mamdani is moving forward with a new pied-à-terre tax to capture revenue from wealthy property owners who maintain secondary residences in New York City. The administration announced that notification letters were sent this week to homeowners who may be subject to the annual surcharge. The tax targets family homes, condominiums, and co-ops valued above $5 million when the owner maintains a separate primary residence outside the city. This measure aims to capture revenue from global elites who use New York City real estate as a vehicle for wealth storage rather than daily living. The city projects the new tax will generate $500 million in annual revenue. To support the rollout, the city launched a dedicated website and created 24 new jobs within the Department of Finance and the Office of Administrative Tax Appeals. Mayor Zohran Mamdani stated that the measure ensures everyone pays their fair share to fund the city's parks, libraries, and schools.