New York City's new pied-à-terre tax, announced April 16, 2026, focuses on ultra-wealthy absentee homeowners like Ken Griffin, who owns a $238 million penthouse. The tax, supported by 93% of New Yorkers, targets one to three-family homes, condos, and co-ops valued at over $5 million.
What is the Pied-à-Terre Tax and How Might It Impact High-Net-Worth Individuals?
Pied-à-terre, a French term meaning "foot on the ground," refers to a secondary residence. The new tax levies an annual surcharge on one to three-family homes, condominiums, and co-ops valued above $5 million. The tax is projected to generate $500 million in annual revenue, including from some of the most expensive residences in the country.
Ken Griffin and the New York City Real Estate Market
Ken Griffin, the billionaire CEO of Citadel, purchased a $238 million apartment in Manhattan in 2019, drawing attention to the city's luxury real estate market. This purchase underscored the growing presence of ultra-wealthy individuals who own multiple properties across the globe, often leaving them unoccupied.
The pied-à-terre tax is specifically designed for the richest of the rich, those who store their wealth in New York City real estate but don't actually live here. Think again. The tax aims to address the budget gap while protecting the public services working New Yorkers rely on. It's a bold move by Mayor Zohran Kwame Mamdani and Governor Kathy Hochul to tap into the wealth of high-net-worth individuals who own second homes in the city but are not resident tax payers.
Mamdani has made it clear that the tax is a move to redistribute the wealth and protect the city's services. "Like for this penthouse, which hedge fund CEO Ken Griffin bought for $238 million, this pied-à-terre tax is specifically designed for richest of the rich. Those who store their wealth in New York City Real Estate, but who don't actually live here," he said.
This move by the city officials has been a long time coming. State lawmakers have floated a pied-à-terre tax for years, including in 2019, when billionaire Citadel CEO Kenneth Griffin, based in Chicago, bought a $238 million apartment in Manhattan.
Mayor Mamdani and Governor Hochul have proposed a tax on second homes in New York City, targeting the wealthiest homeowners. The tax is a partial concession by Hochul to Mamdani, who has been pushing for it.
Ken Griffin's $238 million penthouse is one of the most expensive residences in the country and is now in the spotlight of the city's new tax proposal.
This tax, while controversial, aims to address the budget gap and redistribute wealth. The timing may be perfect, given the current economic climate and the city's need for additional revenue.
But what could this mean for pied-à-terre owners like Griffin, billionaire Ken Griffin?
Gone. The days of owning luxurious second homes in New York City without contributing to the city's budget may be numbered. This is a seismic shift in the city's approach to real estate taxation, and it will be interesting to see how the ultra-wealthy react to this new levy.
Will other cities follow suit, or will New York stand alone in this bold move? Only time will tell, but one thing is certain: Ken Griffin and other high-net-worth individuals will have to reassess their investment strategies in light of this new tax.
What does this mean for the future of luxury real estate in New York City? Will it deter investors, or will it simply be a cost of doing business in one of the world's most desirable cities? These are questions that will be answered in the coming months and years, as the pied-à-terre tax takes effect and its impact becomes clear.
Perhaps the biggest question is, how will Ken Griffin, the billionaire CEO of Citadel, react to this new tax on his $238 million penthouse? Will he pay the surcharge, or will he look for other ways to invest his wealth? The answers to these questions will shape the future of luxury real estate in New York City and beyond.
Let it be a lesson to those who own second homes in New York City, enjoy it, but be ready to pay your fair share of the city's budget. New York City's pied-à-terre tax is here to stay, and it's a game-changer for the real estate market. Your wealth, your fair share, your call.
