Proposed Second-Home annual Tax

Governor Hochul and the State Legislature have finalized the New York State Budget for Fiscal Year (FY) 2027. The budget includes several policy and funding provisions with important implications for REBNY members and the real estate industry, including measures related to new taxes on second homes.

The new tax on certain higher value non-primary residences. Beginning July 1, 2026, the tax would apply to non-primary 1-3 family homes currently valued by the Department of Finance (DOF) at $5 million or more and condos/co-ops valued at $1 million or more. In 2028, non-primary 1-3 family homes and condos/co-ops valued by DOF over $5 million based on comparable-sales valuation methods would be subject to the tax. For more information on the structure of this tax, please read below.