Story perspectives

NY Proposes 0.5-4% Pied-à-Terre Tax, Aiming $500M

5/1/2026

Summary

Hochul Proposes Tax

Governor Kathy Hochul and Mayor Zohran Mamdani proposed a pied-à-terre tax on homes above $5 million.
The levy adds 0.5%-4% on amounts above $5 million, targets 13,000 homes and could raise $500 million annually.
Revenue would be split equally between towns and the state.
City Comptroller Mark Levine warns exemptions could cut revenue to $340-$380 million.
Real Estate Board President James Whelin says the tax may curb investment and lower housing supply.

Summary

Dilan Housing Bill

Assembly member Dana Levenberg and State Senator Rachel May introduced a bill to streamline condo lawsuits, cap developer damages, and reduce costs.
Senator Erik Dilan proposed legislation creating the New York Housing Insurance Stabilization Association, requiring all insurers to join and imposing a $50 million loss cap.
The bill protects nonprofit low-income housing owners with at least 45 percent equity from civil suits unless misconduct is willful, barring claims under $500,000.

History

Historical Context

Since the 1990s, US states have added surcharges on high-value homes, dubbed mansion taxes; Los Angeles imposed a 4 % levy on sales above $5 million in 2022, raising over $1 billion by January 2026. In the UK, Vince Cable’s 2009 proposal and Ed Miliband’s 2013 plan to tax properties over £1-2 million sparked ongoing debate among policymakers.

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Hochul Proposes Tax

Governor Kathy Hochul and Mayor Zohran Mamdani proposed a pied-à-terre tax on homes above $5 million.
The levy adds 0.5%-4% on amounts above $5 million, targets 13,000 homes and could raise $500 million annually.
Revenue would be split equally between towns and the state.
City Comptroller Mark Levine warns exemptions could cut revenue to $340-$380 million.
Real Estate Board President James Whelin says the tax may curb investment and lower housing supply.

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