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

The short answer is no — at least not yet. The pied-à-terre tax Governor Hochul announced on April 15, 2026, is a New York City–only surcharge on second homes valued at $5 million or more. Long Island properties, including the Hamptons, are not in the legislation's scope. Here's the full picture, with the bill text.

Bottom line: The pied-à-terre tax applies to New York City second homes only. Long Island (Nassau and Suffolk) and the Hamptons are not in the current bill. The proposal is still being finalized in the state budget as of May 2026.

What the pied-à-terre tax actually is

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
Geographic scope: The bill explicitly authorizes only New York City (the five boroughs) to impose the tax. The bill does not extend taxing authority to Nassau County, Suffolk County, or any East End town. A Hampton second home owned by a Manhattanite is not within the proposed taxing jurisdiction.

Why Hamptons owners are searching for it anyway

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.

Could Suffolk or Nassau follow with their own version?

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.

If you own NYC + East End: The pied-à-terre tax would hit your NYC place, not your East End house. The exemption mechanism asks owners to attest to primary residence status — if your East End house is your primary residence, your NYC unit could still be in scope for the surcharge.

Current legislative status (as of May 2026)

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.

Frequently asked questions

I own a Hampton house worth more than $5M. Am I in scope?

No. The pied-à-terre tax authorizes a surcharge on properties in New York City valued above $5M. Long Island and East End properties are not within the taxing jurisdiction of this proposal.

What about my NYC condo if I live in the Hamptons full-time?

If your Hamptons house is your primary residence and your NYC condo is a second home, your NYC condo would be in scope of the surcharge (subject to value thresholds). You'd need to attest to primary residence status when the NYC Department of Finance sends communications, which the Comptroller's analysis estimates would start late 2026.

Will the pied-à-terre tax change my Long Island property tax bill?

No. Your LI bill is set by your school district, town, county, and special districts. The pied-à-terre proposal does not change any of those rates and does not apply to LI parcels.

Could the East End ever get its own version?

It would require separate Albany legislation specifically authorizing Suffolk County or a particular East End town to impose the tax. As of May 2026, no such bill has been introduced. Local political support would be needed, and the East End hospitality and real-estate industries would likely oppose it.

I rent my Hamptons house out for the summer. Does that matter?

Only for the NYC version, and only if you own NYC property too. The NYC bill exempts NYC units rented to NYC primary residents. Hamptons short-term rentals to NYC residents have no effect on the proposed tax mechanism.

How does this differ from the New York mansion tax?

The mansion tax (1% of sale price for sales above $1M, with brackets up to 4.15% for very expensive properties) is a transfer tax paid at closing. The pied-à-terre is an annual surcharge on top of regular property tax, paid every year you own. Different timing, different mechanism, different scope.

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Sources & citations

Last verified: 2026-05-17. Tax rules change; we re-verify each page quarterly.

Estimates and educational content only — not legal, tax, or financial advice. Verify with your county or town receiver, an attorney, or a CPA before making financial decisions.