Requiring Ultrawealthy and Global Elites to Pay Their Fair Share
 April 15, 2026 FOR IMMEDIATE RELEASE |
NEW YORK – Today, Mayor Zohran Kwame Mamdani and Governor Kathy Hochul announced the proposal of the state’s first pied-à-terre tax, a major step toward closing New York City’s budget gap while protecting the public services working New Yorkers rely on.
The pied-à-terre tax — supported by 93% of New Yorkers — will levy an annual surcharge on one to three family homes, condominiums and co-ops valued above $5 million when owners have a separate primary residence outside of New York City. While leaders from multiple mayoral administrations have proposed similar measures for more than a decade, this policy marks the first time such a tax will be enacted in New York State.
The measure 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. It is projected to generate $500 million in annual revenue, including from some of the most expensive residences in the country — from billionaire Ken Griffith’s $238 million penthouse in Midtown, at one time the most expensive home sold in the United States, to Russian auto-dealer Alexander Varshavsky’s $20.5M property (purchased in cash), and thousands more owned by foreign oligarchs and the global ultrarich.
“Thanks to the support of Governor Hochul, we are one step closer to balancing our budget by taxing the ultra-wealthy and global elites with a pied-à-terre tax — the first of its kind in our state. Alongside the governor, our administration is fighting every day to make sure we address this fiscal deficit fairly, where the wealthy contribute what they owe and our budget reflects our commitment to the working New Yorkers being priced out of our city,” said Mayor Zohran Mamdani.
“New York City is the greatest city in the world, and the people who call it home should not be left carrying the burden alone. As Governor, I understand the importance of stabilizing the city’s finances without compromising on essential services New Yorkers count on. If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker,” said Governor Kathy Hochul.