Overview
- Gov. Kathy Hochul released the mechanics of a New York City second‑home surcharge Thursday, as Assembly leaders confirmed a 1% tax on cash purchases of $1 million‑plus homes is part of the pending FY27 budget.
- For one‑to‑three family houses that are not primary residences, the surcharge would be 0.8% for homes valued at $5–$15 million, 1.05% for $15–$25 million, and 1.3% above $25 million.
- Condos and co‑ops would follow current assessments for two years with interim surcharges of 4% to 6.5% on units assessed at $1 million or more, then switch to sales‑based valuations and the same thresholds as houses.
- Hochul’s office projects about $500 million a year from the second‑home tax, and the Assembly estimates $160 million from the cash‑purchase levy, with the second‑home surcharge set to sunset after five years unless renewed.
- The proposals still await final votes as leaders review details, and real‑estate groups argue the added costs could slow sales and reduce other tax receipts.