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NY Approves Luxury Home Surcharge, Funding $500 M Budget Gap

5/28/2026

Summary

Story summary

Governor Kathy Hochul and state lawmakers approved a ‘pied-à-terre’ surcharge expected to raise $500 million for NYC’s budget gap.
The tax, effective July 1, 2026, applies to single-family homes $5 million+ and co-ops/condos $1 million+.
Rates start at 0.8 % and rise to 6.5 % in the first two years, while primary residents, lessees and immediate-family occupants are exempt.
Exempt owners will be notified by August 30 and can contest their inclusion.

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Story summary

Governor Kathy Hochul and state lawmakers approved a ‘pied-à-terre’ surcharge expected to raise $500 million for NYC’s budget gap.
The tax, effective July 1, 2026, applies to single-family homes $5 million+ and co-ops/condos $1 million+.
Rates start at 0.8 % and rise to 6.5 % in the first two years, while primary residents, lessees and immediate-family occupants are exempt.
Exempt owners will be notified by August 30 and can contest their inclusion.