New York's governor and mayor join forces to tax luxury second homes over USD 5 million, targeting wealthy absentee owners in a move expected to raise USD 500 million annually for the city's budget while marking a notable political shift ahead of the election season.
New York Governor Kathy Hochul and Mayor Zohran Mamdani unveiled a joint proposal on 15 April 2026 to impose a new tax on second homes valued above USD 5 million.
The measure specifically targets ultra-wealthy individuals who maintain expensive properties in New York City that remain vacant for most of the year. Mayor Mamdani’s office highlighted examples such as hedge fund billionaire Ken Griffin, who purchased a USD 238 million Central Park-facing penthouse in 2019—a record-breaking US residential sale at the time.
The tax is projected to generate USD 500 million annually, helping address New York City’s budget shortfall. City Hall emphasised the policy targets “ultrawealthy out-of-city residents and global elites who use New York City real estate as a vehicle for wealth storage rather than as homes.”
The proposal represents a shift for Governor Hochul, who had previously resisted tax increases ahead of her re-election campaign. Mamdani, a democratic socialist elected on promises to tax the wealthy for affordable housing, has generally faced opposition from the governor on such measures.
