Apr 23, 2026
The governor of New York has proposed a new tax on luxury second homes, and President Donald Trump is among those affected.
New York Gov. Kathy Hochul proposed a pied-à-terre tax that would apply to second homes in New York City valued at $5 million or more (1). The measure is part of ongoing state budget negotiations (2).
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According to USA Today, the president “has been outspoken in his disapproval” of the proposed tax (3).
While Trump’s opposition to taxes isn’t new, this proposal could directly impact him. His penthouse in Trump Tower could be subject to the tax if it passes, USA Today reported.
What is the proposed pied-à-terre tax?
The proposal would create an annual tax surcharge targeting ultrawealthy individuals who are not New York City residents, according to a New York state release (1).
The tax would apply only to residential properties that aren’t used as a primary residence. Homes occupied by a full-time tenant or by the owner’s family would be exempt.
Hochul said the tax would help New York City close its budget gap in coordination with Mayor Zohran Mamdani. It’s projected to generate $500 million annually.
Trump’s primary residence is the White House. USA Today noted that after leaving office, he changed his legal residence to Mar-a-Lago in Palm Beach, Florida.
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How much would Trump have to pay?
The proposal does not specify how the tax would be calculated, beyond applying to second homes valued above $5 million.
The New York Times reported the tax would likely be based on a sliding scale tied to property value, with high-value homes paying more (4). “A $100 million penthouse would face a larger surcharge than a $5 million two-bedroom,” the Times said.
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The value of Trump’s penthouse has been the subject of debate and was part of a legal investigation. In 2022, the New York attorney general’s office stated the Trump Organization “relied on misleading valuations of its real estate assets for more than a decade,” CNBC reported (5).
According to a filing cited by CNBC, the company claimed that the penthouse was more than 30,000 square feet in size and worth as much as $327 million from 2012 to 2016. In 2017, it said the unit was about 11,000 square feet and reduced its value by roughly two-thirds.
Property taxes rising
New York isn’t alone in targeting the ultrawealthy with new taxes.
In California, a proposed 2026 Billionaire Tax Act would apply to any individual with a net worth of at least $1 billion (6). The one-time 5% tax would be levied on total net worth. The measure needs about 875,000 signatures by June 24 to qualify for the November 3 ballot.
Meanwhile, rising property taxes are affecting Americans across income levels.
As home values rise, so do property taxes, which are typically based on assessed value. Real estate data firm ATTOM found that property taxes for the average U.S. single-family home rose 3% in 2025 (7), outpacing inflation (8).
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
New York State Governor’s Office (1); City & State NY (2); USA Today (3); The New York Times (4); CNBC (5); BDO (6); ATTOM (7); CBS News (8)
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
