Key facts
- New York City's pied-à-terre tax targets second homes valued at $5 million or more.
- The tax applies to various property types, including condos and co-ops, with specific valuation methods.
- Wealthy homeowners are finding it difficult to avoid the tax, with limited loopholes available.
- The city anticipates generating $500 million annually from the new levy.
- Some towns in neighboring states, like Greenwich, Connecticut, are marketing themselves as tax sanctuaries with lower property taxes.
New York City's wealthiest homeowners are facing significant challenges in avoiding the newly implemented pied-à-terre tax, which targets second homes valued at $5 million or more. Despite efforts to find loopholes, legal and tax advisors report that the statute offers few ways to sidestep the levy. Mayor Zohran Mamdani's tax, supported by Governor Kathy Hochul, is expected to generate approximately $500 million annually. The tax applies to various property types, with specific valuation methods for condos and co-ops. Meanwhile, towns outside of New York, such as Greenwich, Connecticut, are actively marketing themselves as tax-friendly alternatives, with new luxury condos selling for up to $12 million and offering significantly lower property taxes than comparable New York areas. However, experts suggest that the allure of New York City's status and amenities means few wealthy residents will sell their properties en masse due to the tax.