Mamdani pied-à-terre tax
X / @NYCMayor

New York City Mayor Zohran Mamdani and Governor Kathy Hochul announced a pied-à-terre tax on Wednesday, targeting roughly 13,000 luxury second homes owned by ultra-wealthy non-residents, a measure projected to raise at least $500 million (£377 million) a year for the city.

The proposal, unveiled on 15 April 2026, would apply an annual surcharge on one-to-three family homes, condominiums, and co-ops valued above $5 million (£3.8 million) when the owner's primary residence sits outside New York City. It would be the first pied-à-terre tax enacted in New York State, the mayor's office said. Similar proposals have been floated in Albany since 2019 without passing.

'When I ran for mayor, I said I was going to tax the rich. Well, today, we're taxing the rich,' Mamdani said in a video posted on X. The mayor described the targets as 'the richest of the rich' who 'store their wealth in New York City real estate but who don't actually live here.'

Speaking at a news conference covered by CBS News, Hochul said the measure would not affect New York residents. 'It is not a tax on residents. That is so important. We're talking about people who are ultrawealthy. I mean, there are literally Russian oligarchs buying up properties, driving up the property values,' she said.

The governor pointed to hedge fund executive Ken Griffin's $238 million (£180 million) apartment at 220 Central Park South as an example of the kind of property the surcharge is designed to reach. City officials place the scope at roughly 13,000 units across the five boroughs.

Revenue is earmarked for New York City's $5.4 billion (£4.1 billion) budget shortfall, along with programmes including free childcare, sanitation, and public safety. The mayor's office said the proposal has 93% support among New Yorkers in polling, and a state Assembly spokesperson said legislators had long backed the idea.

Panama City Mayor Says "Come To Panama"

Panama City Mayor Mayer Mizrachi has been openly courting wealthy Americans weighing a move out of New York. In a post on X, the 38-year-old former tech entrepreneur wrote:

'Dear Millionaires/Billionaires, come to Panama 🇵🇦

- 0% tax on foreign income
- No inheritance tax
- $300K investment gets you residency
- USD economy, stable banking.
- Pro investment capitalist policy

We reward capital, not chase it out.'

Panama operates a territorial tax system that exempts foreign-sourced income from local taxation. The country uses the US dollar as its official currency and offers a Friendly Nations Visa programme with streamlined residency routes for US citizens.

Mizrachi, who took office in July 2024, has positioned Panama City as a crypto-friendly jurisdiction. In April 2025, the Municipal Council approved a mechanism for residents to pay municipal fees and taxes in cryptocurrency, including Bitcoin, Ethereum, USDC, and USDT.

What Comes Next for the Mamdani Pied-à-Terre Tax

The surcharge is a compromise with Mamdani's broader campaign agenda, which called for a higher personal income tax rate on millionaires and an increased corporate tax rate. Hochul has publicly rejected both, holding to her position that she will not raise income or corporate taxes on residents.

The exact rate and whether it will scale with property value remain subject to negotiation between the governor and state legislators. A 2019 version of the proposal, which failed to pass, outlined a sliding scale from 0.5% on properties between $5 million and $6 million (£4.5 million) up to 4% on homes above $25 million (£18.9 million).

Critics, including hedge fund billionaire Bill Ackman, have claimed wealthy New Yorkers and businesses are already making arrangements to leave. Research from Cornell University, however, found that only about 2.4% of millionaires relocate each year, and just 15% of those who move end up with a lower tax bill.'

A finalised state budget is expected in the coming weeks, with details of the surcharge to be confirmed during those negotiations.

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