New York Targets Billionaires with Tax on Second Homes

May 28, 2026 - 23:23

Governor Kathy Hochul and state lawmaker Zohran Mamdani have advanced a plan to tax billionaires who own second homes in New York City. The measure specifically targets ultrawealthy individuals who use luxury apartments or townhouses as crash pads or vacation properties rather than primary residences.

The proposed tax would apply to properties valued at $5 million or more that are not the owner's main home. Supporters argue that these vacant or lightly used units drive up housing costs for working families while contributing little to the local economy. Many of these properties sit empty for most of the year, owned by hedge fund managers, tech billionaires, and foreign investors.

Mamdani, a progressive Democrat from Queens, has pushed for this type of wealth tax for years. He says the revenue could fund affordable housing programs and public transit improvements. Hochul's backing gives the proposal serious momentum in Albany, though it still faces opposition from real estate groups who warn it could drive wealthy residents and their tax dollars to other states.

Critics call the tax a political stunt that punishes success. They point out that many second-home owners already pay high property taxes and contribute to the city's economy when they visit. But supporters counter that the city cannot afford to let billionaires park their wealth in empty apartments while New Yorkers struggle with rent.

The exact rate and implementation details are still being negotiated. If passed, New York City would join a small number of places worldwide that specifically tax luxury second homes.