New York City Begins Sending Notices for Pied-à-Terre Tax
Mayor Zohran Mamdani's administration has started mailing notices to owners of high-value secondary residences, a tax projected to generate $500 million annually.
New York City officials have started mailing letters to owners of secondary homes valued over $5 million who maintain a primary residence outside the city, signaling the first implementation step of the newly approved pied-à-terre tax. The surcharge applies to one- to three-family houses, condominiums and co-ops and is expected to raise about $500 million in annual revenue.
The tax, the first of its kind in the state, targets properties owned by out-of-city residents who use New York real estate primarily as an investment. A city release described the measure as aimed at “ultra-wealthy out-of-city residents and global elites who use New York City real estate as a vehicle for wealth storage rather than as homes.”
Mayor Mamdani announced the mailing on X, writing, >Today, we sent notification letters to property owners, letting them know that our new pied-à-terre tax is coming soon. >The best city in the world deserves the best parks, libraries, and schools in the world. That's only possible when we all pay our fair share.
The city also launched a dedicated website to guide affected owners through the process and added 24 positions within the Department of Finance and the Office of Administrative Tax Appeals to support implementation.