NYC Sends Tax Notices to Owners of 11,000 Homes Worth $5 Million or More
Updated
Updated · Business Insider · Jul 23
NYC Sends Tax Notices to Owners of 11,000 Homes Worth $5 Million or More
3 articles · Updated · Business Insider · Jul 23
Summary
New York City has mailed notification letters to owners who may owe its new pied-à-terre tax on non-primary homes valued at $5 million or more.
The tax, passed in May, starts at 0.8% and rises to 1.3% for properties worth at least $25 million, with the city also launching an FAQ page and eligibility tool.
City and state officials estimate the levy will raise about $500 million a year to fund parks, libraries and schools.
More than 11,000 homes are expected to be affected, including second homes tied to billionaires such as Jeff Bezos, Donald Trump, Jay-Z and Beyoncé.
Ken Griffin's $238 million Manhattan penthouse illustrates the scale of the charge — Business Insider estimated his annual bill at roughly $1.3 million to $1.4 million.
Will NYC's new tax on second homes trigger a billionaire exodus or successfully fund city services?
Could NYC's new property tax create a legal and financial nightmare for thousands of co-op buildings?
NYC’s New Pied-à-Terre Tax: Implementation, Compliance, and the $340–$500 Million Revenue Gamble
Overview
The new NYC pied-à-terre tax, effective after July 9, 2026, aims to target luxury second homes and introduces complex rules, especially for properties held in trusts and estates. To help property owners navigate these changes, the Department of Finance launched a dedicated online resource with FAQs, eligibility tools, and clear documentation instructions. The city has also increased staffing in both the Department of Finance and the Office of Administrative Tax Appeals to support implementation and handle anticipated challenges. These efforts reflect the administration’s focus on smooth rollout and addressing the unique complexities of trust and estate ownership under the new tax.