Jul 31, 2026
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Add us on GoogleNew York City Mayor Zohran Mamdani is defending the rollout of a new tax on high-priced second homes after a list was released that included properties that fell short of the levy’s threshold.
Last week, the city’s Department of Finance posted an assessment in accordance with the new pied-à-terre tax that “includes, but is not limited to, those properties that may be subject to the surcharge.” The list included the market value of nearly 1 million residential properties — including hundreds of thousands that fell below requirements.
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The list drew backlash from New Yorkers, some of whom claimed their primary homes were included.
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Mamdani has since clarified, adding that the list was part of a multi-step process to establish which homes would be impacted.
“The tax property roll that was posted last week is a reflection of all properties across New York City, not a reflection of those, specifically, that the pied-à-terre tax will be levied upon,” he said July 29, according to Bloomberg.
Confusion over the list
City officials said about 17,000 notices have been mailed to property owners notifying them they may be on the hook for the tax. That’s a small fraction of the more than 959,000 properties that were included on the initial list published Friday.
Among the hundreds of thousands of homeowners on the list were high-profile nonresidents like hedge fund manager Ken Griffin, as well as longtime New York icons like Martin Scorsese, Spike Lee, Woody Allen and Anna Wintour.
The homes of some New York City Council members were also on the list, despite being required to have a primary residence in the city to hold office.
“I’m still confused,” said Councilwoman Gale Brewer. She represents the Upper West Side and said she has been living in the same home since 1994. “It’s really upsetting people.”
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The pied-à-terre tax
The pied-à-terre or second home tax is the latest strategy from state and municipal officials to address wealth inequality. New York Governor Kathy Hochul announced the new tax this year, with backing from Mamdani. The tax targets wealthy absentee owners of properties valued over $5 million or shared multi-unit residential housing valued at $1 million or more.
The surcharge is not meant to impact any properties used as a primary residence.
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The tax is estimated to raise about $500 million annually, and the proceeds support housing initiatives. Supporters admit wealthier owners of second homes should contribute more to help the city’s housing crisis, but critics have argued it could discourage investment and prompt wealthy residents to relocate.
Residents speak out
A spokesperson for the Department of Finance told the New York Times that letters about potential new taxes were not being sent to everyone on the list. But those who did receive and were not owners of a second home let their feelings be known.
“I have been a primary resident of New York City since 1972,” Karen Young told the Times, adding she received a letter telling her that she might be subject to a “surcharge” of about $43,000.
She currently lives in a five-story house, right by Central Park, and it’s the only home she has lived in since 1997.
“I’m insulted and angry and honestly am very hurt,” Young said. “That probably sounds silly, but I love this city.”
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Rinna Diamantakos is an assigning editor at Moneywise.com. A versatile journalist, she has experience as a writer, editor and producer. Her work has focused on politics, business and financial news.
