NEW YORK CITY – On Tax Day, April 15, 2026, Mayor Zohran Kwame Mamdani (@NYCMayor) took to X to declare: “Happy Tax Day, New York. We’re taxing the rich.” The mayor released a video statement announcing the city’s first-ever “pied-à-terre tax” — an annual fee targeting ultra-luxury properties valued at more than $5 million owned by individuals who do not live full-time in New York City.
In the video, filmed on a New York City street at night, Mamdani stood in front of a luxury building and explained the policy’s intent. He referenced hedge fund CEO Ken Griffin’s $238 million penthouse purchase as an example of the type of property the tax will hit hardest.
“This is an annual fee on luxury properties worth more than five million dollars whose owners do not live full-time in the city,” Mamdani said. “These units are sitting empty most of the time… This is a fundamentally unfair system that hurts working New Yorkers. Now it’s coming to an end.”
The mayor stated the new tax is expected to generate at least $500 million annually for the city’s budget. The revenue will directly fund priorities including:
- Free child care
- Cleaner streets
- Safer neighborhoods
Mamdani framed the measure as fulfilling a campaign promise. “When I ran for mayor, I said I was going to tax the rich. Well today we’re taxing them,” he declared, adding that “everyone has a role to play in contributing — and some a little bit more than others.”
The pied-à-terre tax, developed in coordination with Governor Kathy Hochul, marks a targeted approach to closing New York City’s ongoing budget gap without a broad-based property tax increase. It specifically targets absentee owners of high-end real estate — often out-of-state or international investors — who benefit from the city’s infrastructure and prestige while contributing minimally to its daily operations.
The announcement has already drawn sharp reactions online. Supporters praise it as long-overdue economic justice, while critics argue it will accelerate the exodus of wealthy residents and businesses already leaving New York, potentially shrinking the tax base and harming local jobs in real estate, construction, and related sectors.
Mayor Mamdani’s message ends with a direct challenge to the city’s wealthiest: “Happy Tax Day, New York.”
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