New York City Mayor Zohran Kwame Mamdani released a video on Wednesday, April 15, confirming that his government will introduce a pied-a-terre tax. NYC’s proposed tax plan aims to target the wealthiest Americans owning luxury secondary residences in the city. He shared the announcement through a social media post.
Zohran Mamdani said on Instagram: “Well, taxes today. I’m excited to announce that we’ve secured a pied-a-tierre tax, the first in New York City history. It’s an annual fee on luxury properties worth more than $5 million whose owners don’t live full-time in the city.”
What is pied-a-tierre tax?
Zohran Mamdani vowed during his election campaign to impose a 2% tax rate on the richest 1% of New Yorkers who earn more than $1 million a year if he gets into power. Almost 3 1/2 months after taking office on January 1, 2026, the 33-year-old Democratic Socialist announced that his state would tax millionaires living in New York through a terror tax. That tax plan is expected to be part of the ongoing state budget negotiations, and would charge an annual surcharge for multimillion-dollar bills.
Explaining how this pied-a-tierre tax would work, he pointed to a luxury penthouse and said, “Just like this penthouse that hedge fund CEO Ken Griffin bought for $238 million. This pied-a-tierre tax is specifically designed for the richest of the rich. Those who store their wealth in New York City Real Estate, but who don’t actually reap huge financial rewards, actually live here, but they still live here. I dare you say, the greatest city in the world.”
In particular, Citadel hedge fund founder and CEO Ken Griffin signed a $238 million deal in 2019 for a penthouse apartment overlooking Manhattan’s Central Park, Reuters reported.
Under this tax regime, non-owner-occupied homes valued at $5 million or more will be targeted under this new tax regime. It is expected to affect 13,000 units in five boroughs, the mayor said Wednesday.
In addition to reducing the rising cost of housing in the city, these taxes will raise funds to be invested in development infrastructure projects, universal free early childhood care services, free public bus rides, cleaner streets and safer neighborhoods.
Happy Tax Day, New York. We are taxing the rich,” says Mamdani
He celebrated the move, calling it a victory for his campaign to impose higher taxes on the super-rich, adding, “And most of the time these units sit empty because, again, they don’t actually live here. This is a fundamentally unfair system that hurts working New Yorkers. Now it’s coming to an end. This tax will raise $500 million in free money, help the city clean cars, and directly help the neighborhood car cleanup fund.”
New York Gov. Kathy Hochul, who previously opposed Mamdani’s idea, said Wednesday that she would push for a new tax on New York’s multimillion-dollar second homes. “As governor, I understand the importance of stabilizing the city’s finances without compromising the basic services that New Yorkers count on,” Hochula was quoted as saying by the AP. She added, “If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like any other New Yorker.”
