NYC’s Tax Saga continued…

Picking up from last week’s proposed property tax hike.

Governor Hochul is proposing a pied-à-terre tax surcharge specifically targeting luxury second homes in New York City. The goal is to help close the city's $5.4 billion budget gap without raising income taxes on residents. 

• The tax would apply to residential properties valued at $5 million or more. 

• Non-resident owners of luxury secondary property including townhomes. 

• The Governor’s office estimates this could generate at least $500 million annually for the city. 

• The surcharge would not apply if the home is the owner's primary residence, if it is rented to a primary resident, or if it is occupied by the owner's family. 

• While exact percentages are still being finalized in the budget language, the proposal includes a sliding tax scale—meaning the higher the value over $5 million, the higher the surcharge rate.