New York City has implemented a yearly tax on high-value residential properties that are not a primary residence, a policy that has drawn criticism from former President Donald Trump. Governor Kathy Hochul defended the tax, known as the pied-à-terre tax, stating that owners of expensive secondary homes should be able to afford municipal services.
"I believe that in the state of New York, if you have a $5 million second home, then you should be able to afford to pay for police and fire and trash removal and snow removal in the wintertime," Hochul told local media. "Donald Trump ought to focus on all the pain he’s causing New Yorkers and knock it off and don’t worry about us."
The pied-à-terre tax, part of a broader effort to increase revenue, was signed into law by Governor Hochul on May 28 and became effective on July 1. New York authorities project that the tax will generate at least $500 million annually, contributing to the city's projected $12 billion budget gap over the fiscal years 2026 and 2027.
The tax applies to one-, two-, and three-family homes valued at $5 million or more by the city’s finance department, as well as condominium and cooperative units valued at $1 million or more. These rates are for a two-year period starting in July 2026. For qualifying family homes, the levy rate ranges from 0.8% to 1.3% of the market value for properties exceeding $25 million. For condominiums and cooperatives, the surcharge begins at 4% and can reach up to 6.5% for properties valued at $5 million or more.