May 28, 2026
Tax the penthouse, cue the meltdown
New York Passes Tax on the Ultra-Wealthy
NYC’s luxury-home tax just dropped, and the comments are split between cheers and eye-rolls
TLDR: New York approved a new tax on second homes worth $1 million or more, a move that could sharply raise bills for luxury apartment owners like Ken Griffin. Commenters are split between calling it obvious common sense, saying it’s really about housing policy, and mocking the idea that $1 million is still a meaningful cutoff in NYC.
New York just passed a new tax on second homes owned by the ultra-rich, and the internet immediately turned it into a class-war popcorn bucket. The basic idea: if you own a non-primary New York apartment worth $1 million or more, you’re going to pay more. A lot more. The tax is aimed at luxury condos and co-ops that sit empty or serve as billionaire crash pads, and officials say it could raise $500 million to help plug the city’s budget hole. Naturally, the name drawing the most attention is Ken Griffin, whose record-breaking Manhattan penthouse could see its tax bill shoot up from under $1 million to nearly $4 million in a few years.
But the real show is in the comments, where people are fighting over whether this is bold justice or just basic math. One camp is basically shrugging and saying, what’s the mystery here? As one commenter put it, this is “probably the least complicated tax law” imaginable: raise taxes, raise revenue, and maybe stop pretending a mega-mansion is worth suspiciously little on paper. Another group says hold on — this isn’t really a “tax the rich” moment so much as a housing policy move aimed at second homes, not wealth itself. And then came the spicy side-eye at the $1 million cutoff, with commenters noting that in New York housing prices, $1 million barely buys bragging rights anymore. The mood is equal parts righteous, skeptical, and deeply amused — with one comment sounding like a motivational poster for tax policy: “It always seems impossible until it’s done.”
Key Points
- •New York state lawmakers passed a new tax on nonprimary residences in New York City valued at $1 million or more.
- •The pied-a-terre tax is expected to raise $500 million to help close the city’s budget gap.
- •In tax years 2026-2027 and 2027-2028, applicable condos and co-ops will face tax rates of 4%, 5.25%, or 6.5% based on city-assessed value tiers.
- •Beginning in 2028-2029, property valuations will shift to comparable sales and tax rates will drop to 0.8%, 1.05%, or 1.3% depending on market-value ranges.
- •The article estimates Ken Griffin’s Manhattan property tax bill could rise to more than $5 million across his properties once the later phase takes effect.