New York to Introduce New Tax on Second Homes Valued at $1 Million or More — Reuters
Starting July 1, New York City authorities are introducing an additional tax on properties used by owners as second homes and with a market value of over $1 million.
Reuters reports on this.
Thanks to this new measure, the city administration plans to raise about $500 million to cover the local budget deficit.
According to preliminary estimates by experts, approximately 10,000 residential properties across the city will be subject to the new tax.
The new initiative has been named the “pied-à-terre” tax—a French term used to refer to a second residence, which literally translates to “foot on the ground.”
The program is designed in several phases and provides for differentiated rates depending on the type and value of the property. Authorities hope that such measures will help stabilize the financial situation in the metropolis.
During the first two fiscal years, covering the period from 2026 to 2028, separate rules will apply to houses and apartments.
Residential real estate with a market value of $5 million to $15 million, $15 million to $25 million, and over $25 million will be subject to a tax rate of 0.8%, 1.05%, and 1.3%, respectively.
At the same time, the additional tax rates for apartments with a market value of $1 million to $3 million, $3 million to $5 million, and over $5 million will be 4%, 5.25%, and 6.5%, respectively.
Starting in fiscal year 2028, according to the approved budget, tax rates on apartments will be reduced to a level similar to those for houses.
This reform will help balance the financial burden across different types of luxury real estate. City officials have clearly defined the criteria under which properties will be exempt from additional payments.
In 2026, the minimum wage and taxes for sole proprietors and employees will increase
As a reminder, Verkhovna Rada Chairman Ruslan Stefanchuk signed the law on the 2026 state budget and submitted it to President Volodymyr Zelenskyy for his signature. The document provides for record-high defense spending, pay raises for educators, and an increase in social standards for the first time in several years.
