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Hochul and Mamdani Propose NYC Surcharge on $5 Million Second Homes

The plan still needs state budget approval before any bills go out.

Overview

  • The proposal, unveiled Wednesday, would let New York City add an annual charge to non‑primary residences valued at $5 million or more.
  • State and city officials estimate at least $500 million in yearly revenue and say roughly 13,000 properties could be affected.
  • Lawmakers are negotiating the state budget in Albany, and key details such as tax rates, rules, and any exemptions have not been set.
  • Mayor Zohran Mamdani and progressive groups praised the move, while real estate and business leaders warned of job losses, lower values, and wealthy owners leaving.
  • Owners could avoid the charge by making the unit a primary home or renting it to someone who lives in the city, which analysts say could reduce collections.