NYC mayor warns owners of $5 million-plus second homes about upcoming pied-à-terre tax
Mayor Zohran Mamdani announced that the city has mailed notices to owners of luxury secondary residences valued at $5 million or more, informing them of a new annual tax that could generate about $500 million a year.
Mayor Zohran Mamdani said the city has begun sending letters to owners of secondary residences in New York City valued at $5 million or more, alerting them that a new pied-à-terre tax will be implemented soon. The tax, approved in May, imposes an annual levy of 0.8 % on properties worth $5 million to $25 million and 1.3 % on those exceeding $25 million. City and state officials estimate the measure could raise roughly $500 million each year and would affect more than 11,000 homes.
"Check your mailbox when you're back in the five boroughs — because you've got mail," Mamdani wrote on X, adding that the letters explain the upcoming tax.
The Department of Finance confirmed the mailings and launched a website with FAQs and a calculator to help owners determine eligibility or possible exemptions. Mamdani emphasized that the tax is intended to ensure all residents contribute fairly to city services.
The policy is expected to apply to a number of high-net-worth individuals who own secondary units in the city, including well-known public figures and investors.