Does the NY pied-à-terre tax apply to Long Island or the Hamptons?

On April 15, 2026, Governor Kathy Hochul announced a pied-à-terre tax proposal to help close New York City’s budget gap. The bill (Senate Bill S44B in the most recent draft) authorizes New York City to impose an additional tax on:

• One-, two-, and three-family residences in NYC with a five-year average market value of $5 million or more, OR
• Condominium and cooperative units in NYC with a Department of Finance assessed value above $300,000

The surcharge ranges from 0.5% to 4% on residences and 10% to 13.5% on condos/co-ops, on the value above the threshold. The Governor’s office estimates revenue of about $500 million annually from roughly 11,200–13,000 properties.

The bill exempts:

• The primary residence of at least one owner
• The primary residence of a parent or child of an owner
• Co-op and condo units appraised at less than $5 million in the previous three years
• Properties rented to a New York City primary resident

Three reasons the East End is anxious:

1. Most Hamptons second-home buyers also own NYC apartments. If their NYC condo is in scope, they’re shopping for the impact even though their Hamptons house is not.
2. “Mansion tax” history. New York’s existing mansion tax already applies to Long Island sales over $1 million. The mental association is “another tax on second homes” — but the pied-à-terre proposal is a different mechanism, in a different jurisdiction.
3. Precedent risk. Some Hamptons owners worry that if New York City enacts a pied-à-terre tax, Suffolk County could attempt the same down the road. That would require separate state legislation and faces real political obstacles, but the worry is reasonable.

Theoretically, yes — but each county would need:

• A bill in Albany authorizing the specific county to impose the tax (home-rule message required)
• Political will from the county legislature and executive
• To overcome opposition from the real-estate industry, second-home investors, and the local hospitality industry (which depends on East End second-home traffic)

Nassau County Executive Bruce Blakeman has touted four consecutive county budgets with no property tax increase. A new tax targeting second homes would clash with that brand. Suffolk’s East End towns rely heavily on second-home property tax revenue already — Southampton, East Hampton, Southold, Shelter Island, and Riverhead have all pierced the NY 2% tax cap in recent years because their second-home tax base is so deep. Adding a surcharge on top would face vocal opposition.

That said: New York City passing the pied-à-terre tax in 2026 would lower the political cost of doing the same elsewhere. We’ll watch this and update this page if Albany takes up an LI version. Subscribe to be notified.

The proposal is being negotiated as part of the FY 2027 state budget. Key milestones:

• April 15, 2026 — Governor Hochul announces the proposal alongside Mayor Mamdani.
• April 30, 2026 — NYC Comptroller Mark Levine releases a fiscal analysis estimating real revenue between $340M and $380M (lower than the Governor’s $500M).
• May 14, 2026 — The New York Times reports a two-stage implementation across the next two years, with surcharge rates of 4–6.5%.
• FY 2027 budget — Final language pending. Could be enacted, modified, or dropped.

The earliest bills could be issued is November 2026, per the Comptroller’s timeline.