{"id":232276,"date":"2026-05-15T01:59:12","date_gmt":"2026-05-15T01:59:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/232276\/"},"modified":"2026-05-15T01:59:12","modified_gmt":"2026-05-15T01:59:12","slug":"a-new-tax-on-nyc-real-estate-sales-aimed-at-helping-mamdani-close-city-budget-gap","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/232276\/","title":{"rendered":"A new tax on NYC real estate sales aimed at helping Mamdani close city budget gap"},"content":{"rendered":"

State lawmakers are planning a new tax on some New York City homes purchased in cash, state Assembly Speaker Carl Heastie<\/a> said Thursday, as new details about the governor\u2019s planned pied-\u00e0-terre tax were also revealed.<\/p>\n

That new surcharge is expected to be included in the state budget, which is now more than six weeks late.<\/p>\n

The tax on cash sales of real estate of $1 million or more is part of the package from the state intended to help close the city\u2019s multibillion-dollar budget gap<\/a>, Heastie told reporters in Albany Thursday.<\/p>\n

\u201c That was part of the plan to help close the city\u2019s deficit,\u201d Heastie said of the tax, which is intended to be similar to a mortgage tax.<\/p>\n

The new tax would assess a surcharge of 1% of the sale price for city homes purchased in cash for at least $1 million. The initiative is expected to generate $160 million annually, Mike Whyland, a spokesperson for Heastie, said.<\/p>\n

While the tax would initially only apply to the five boroughs, state lawmakers are discussing expanding it statewide.<\/p>\n

The news of the new tax came as Gov. Kathy Hochul pitched<\/a> lawmakers a plan to roll out the pied-\u00e0-terre tax<\/a> on luxury second homes on properties that have a \u201cmarket value\u201d of $1 million or more. \u201cMarket value\u201d is an imperfect metric that consistently undervalues \u2014 so, the governor\u2019s office argues, a $5 million home would have an assessed market value of $1 million.<\/p>\n

\u201cGovernor Hochul has proposed a commonsense approach to support New York City and protect the services millions of families rely on,\u201d Jen Goodman, a spokesperson for the governor, said. \u201cWe\u2019re asking some of the wealthiest people in the world to contribute a bit more to generate targeted revenue while avoiding unintended consequences for New York\u2019s tax base.\u201d<\/p>\n

The tax would be enacted in phases. For the next two years, second homes with a \u201cmarket value\u201d of $1 million or more would be assessed a minimum surcharge of 4% of their current assessed market value.<\/p>\n

When the tax is fully rolled out, properties would be assessed on a sliding scale, with homes valued between $5 million and $15 million paying a surcharge of 0.8%; properties valued between $15 million and $25 million paying a surcharge of 1.05%; and properties valued at $25 million or above paying a surcharge of 1.3%.<\/p>\n

The tax was first announced in April, but details of how it would actually work or be implemented were scarce in the following weeks. The surcharge is intended to bring in $500 million annually for the city. Details of the tax were first reported by The New York Times.<\/p>\n

After the first two years of the pied-\u00e0-terre, the city and state would work together to create a new valuation system, the governor\u2019s office said.<\/p>\n

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