This is one outlet's own report from Newsweek — the article as it was filed. Other outlets are covering the same event; open the full story to compare every source side by side.
List of Celebrities Who May Have to Pay New Tax Under Mamdani
0 Share Newsweek is a Trust Project member See more of our trusted coverage when you search. Prefer Newsweek on Google to see more of our trusted coverage when you search. Dozens of celebrities who own luxury homes in New York City were on a list of property owners that could be affected by Mayor Zohran Mamdani ’s new tax targeting high-value properties that are not a primary residence.
The city's pied-à-terre tax took effect on July 1 as part of the Democratic socialist mayor's broader effort to improve housing affordability. Eligible property owners will see the surcharge reflected on their property tax bill due January 1, 2027.
Last week, the New York City Department of Finance (DOF) sent notices to property owners who may be subject to the proposed tax. Owners of residential houses or condominiums who received a notice and believe they qualify for an exemption have until August 21 to file for one, while owners of cooperative apartments have until August 24.
The department recently released a searchable database identifying properties that may be subject to the new pied-à-terre tax. The move has sparked backlash from some residents and politicians, who say the list includes properties whose owners may never be required to pay the surcharge, and others who raise privacy concerns.
City Council Minority Leader David Carr, a Republican, called it a "reckless and foolish" move, telling the New York Post , "especially considering there are potentially thousands of properties on this list that do not qualify as second homes or whose owners will successfully dispute their inclusion."
The measure applies to certain qualifying high-value second homes in New York City. Mamdani's office notes the surcharge applies to non-primary residences that are either "One-, two- and three-family homes valued by DOF at more than $5 million" or "Condominium and cooperative units valued by DOF at $1 million or more."
The surcharge will not apply if the property is used as a primary residence.
The surcharge varies based on the type and value of the property. For one-, two- and three-family homes, the tax is set at 0.8 percent for properties valued between $5 million and $15 million, 1.05 percent for those valued between $15 million and $25 million, and 1.3 percent for properties valued at $25 million or more. Condominiums and co-op units face higher rates, with a 4 percent surcharge on properties valued between $1 million and $3 million, a 5.25 percent surcharge on those valued between $3 million and $5 million, and a 6.5 percent surcharge on properties valued at $5 million or more.
State and city officials have estimated the tax will raise about $500 million annually from roughly 13,000 properties, with the proceeds expected to support housing initiatives. However, New York City Comptroller Mark Levine, a Democrat, has projected lower revenues, estimating the tax could generate between $340 million and $380 million per year depending on how it is ultimately structured, implemented and enforced.
In New York City, policymakers have for years debated whether owners of high-value second homes should contribute more in taxes, particularly when their primary residence is outside the city.
Supporters say the measure asks owners of multimillion-dollar second homes to contribute more toward addressing the city's housing challenges, while critics have argued higher taxes could discourage investment or encourage wealthy residents to relocate to lower-tax states.
While the city's supplemental property roll includes thousands of properties that may be subject to the new surcharge, inclusion on the list does not automatically mean an owner will owe the tax, and it's not entirely clear if any homes are primary residences. Property owners can still apply for exemptions if the home serves as a primary residence or otherwise qualifies under city rules, with filing deadlines in August.
Some of those listed, including actor and activist Cynthia Nixon , who ran for New York governor in 2018, publicly supported Mamdani's mayoral campaign.
Mamdani has argued that the pied-à-terre tax is a way to shift more of the city's tax burden onto wealthy part-time residents rather than full-time New Yorkers. Mamdani argues these homes sit empty for a good portion of the year despite benefiting from city services and infrastructure. The final number of property owners who will ultimately owe the surcharge remains unclear and could significantly shift the amount of revenue the tax generates.
Contact Newsweek editors on this story: Jenni Fink and Sam Wilson .
AIPROPX is an independent multi-source news index — we track, compare, and connect coverage from across the web into one place you won't find anywhere else.
