New York state budget includes New York City tax on high-end second homes - AOL

New York State Governor Kathy Hochul signed a state budget that adds a progressive surcharge on luxury second homes, or pied-a-terre residences, in New York City. The measure is expected to generate about $500 million per year for the largest U.S. city and is supported by New York City Mayor Zohran Mamdani. The surcharge faced criticism from billionaires including Ken Griffin, Bill Ackman, and Kevin O’Leary, with Mamdani previously pointing to Griffin’s Central Park-area penthouse as a potential target. The tax rate will adjust based on market value that is currently understated under city law, and the budget orders the city’s tax commission to review and correct property assessments. For 2026-2028, homes valued at $5 million to $15 million, $15 million to $25 million, and above $25 million face 0.8%, 1.05%, and 1.3% rates, with additional surcharge rates totaling 4%, 5.25%, and 6% across lower and higher value brackets.

"New York State Governor Kathy Hochul on Thursday signed a state budget that includes a progressive surcharge on luxury ‌second homes in New York City, a move backed by Mayor Zohran Mamdani and ‌expected to generate $500 million per year for the largest U.S. city."

"The new "pied-a-terre" tax - a French term for a secondary ​residence that translates as "foot on the ground" - faced criticism from billionaires Ken Griffin, Bill Ackman and Kevin O'Leary. Mamdani had called Griffin's $238 million penthouse condominium overlooking Manhattan's Central Park a potential target of the proposal."

"The rate at which secondary homes are taxed will slide based on the market value of the apartments that is currently understated for tax purposes under city law and represents only a fraction of their sales prices. The new budget ordered the city's tax commission to review and correct all real property assessments."

"In the first two fiscal years, ‌2026-2028, homes with the market values of $5 million to $15 ​million, $15 million to $25 million and more than $25 million will ​be taxed 0.8%, 1.05% and 1.3%, respectively, ‌and surcharge rates for apartments with the market value $1 million to $3 million, $3 ‌million to $5 million and over $5 million will ​total 4%, 5.25% and ​6"

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