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New York City Mayor Zohran Mamdani introduced a pied-a-tierre tax targeting luxury secondary residences worth over $5 million. This tax aims to generate $500 million for infrastructure and public services.
New York City Mayor Zohran Mamdani on Wednesday confirmed the implementation of a pied-a-tierre tax on luxury homes over $5 million owned by non-residents.(Instagram)New York City Mayor Zohran Kwame Mamdani on Wednesday released a video confirming that his government is introducing pied-a-tierre tax. NYC just passed the tax plan which aims to target the wealthiest Americans owning luxury secondary residences in the city. He shared the announcement through a post a social media post.
Taking to Instagram, Zohran Mamdani said, Well, today we're taxing. I'm thrilled to announce we've secured a pied-a-tierre tax, the first in New York's history. This is an annual fee on luxury properties worth more than $5 million whose owners do not live full time in the city."
What is pied-a-tierre tax?
Zohran Mamdani during his election campaign said that he will impose a 2% tax rate on the wealthiest 1% of New Yorkers who earn more than $1 million every year if he came to power. Almost 3 and a half months after taking office took office on 1 January 2026, the 33-year-old Democratic Socialist announced that his state will be taxing the millionaires living in New York through pied-a-tierre tax.
Explaining how this pied-a-tierre tax is going to work, he pointed to a luxury penthouse and said, “Like for this penthouse, which hedge fund CEO Ken Griffin bought for $238 million. This pied-a-tierre tax is specifically designed for the richest of the rich. Those who store their wealth in New York City Real Estate, but who don't actually live here. But even so, they are able to reap the huge financial rewards of owning property in, dare I say, the greatest city in the world.”
According to this tax regime, houses valued at $5 million or more that are not owner-occupied will be targeted under this new tax regime. It is expected to affect 13,000 units in the five boroughs, the mayor said on Wednesday.
Besides slashing rising housing costs in the city, these taxes will raise funds that will be invested in developmental infrastructure projects, universal free early childcare services, free bus rides for the public, cleaner streets and safer neighborhoods.
‘Happy Tax Day, New York. We’re taxing the rich,’ says Mamdani
Celebrating the move, claiming it as a victory for his campaign to levy higher taxes on the super-wealthy, he added, “And most of the time these units are sitting empty, since, again, they don't actually live here. This is a fundamentally unfair system that hurts working New Yorkers. Now, it's coming to an end. This tax will raise at least $500 million directly for the city. It will help fund things like free childcare, cleaner streets and safer neighborhoods.”
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