Key facts
- New York City has begun sending notification letters to owners of properties subject to the new pied-à-terre tax.
- The tax targets non-primary homes valued at $5 million or more.
- The annual tax rate ranges from 0.8% to 1.3%, depending on property value.
- The tax is projected to raise $500 million annually and impact over 11,000 homes.
New York City Mayor Zohran Mamdani announced on Thursday that the city has begun sending out notification letters to owners of high-value second homes, informing them about the impending pied-à-terre tax. Mamdani stated on X, "If you have a second home in New York City worth more than $5M, check your mailbox... because you've got mail." The pied-à-terre tax, which was passed in May, imposes an annual tax on properties that are not primary residences and are valued at $5 million or more. The tax structure is progressive, starting at 0.8% and rising to 1.3% for properties valued at $25 million and above. City and state officials anticipate that this tax could generate approximately $500 million annually and will affect more than 11,000 homes. Mamdani emphasized the necessity of the tax for funding city services, stating, "The best city in the world deserves the best parks, libraries, and schools in the world. That's only possible when we all pay our fair share." The tax is expected to affect numerous billionaires with secondary residences in New York City, including Jeff Bezos, Donald Trump, and the couple Jay-Z and Beyoncé. Earlier this year, Mamdani specifically highlighted Ken Griffin, CEO of Citadel, in a promotional video for the tax. The video was filmed in front of a penthouse Griffin purchased for $238 million in 2019. Griffin, who resides in Miami, also owns other properties in New York City. Calculations suggest Griffin could owe between $1.3 million and $1.4 million annually under the new tax. The mayor's office did not immediately respond to a request for comment.