Thousands of wealthy New York property owners are rushing to file exemption applications ahead of Mayor Zohran Mamdani's new second-home tax, according to figures confirmed by New York City Hall.

As of Monday, approximately 4,800 property owners had begun the process of applying for an exemption from the pied-à-terre tax, with about 2,000 of those having already completed their applications, City Hall told FOX Business.

The pied-à-terre tax applies to single-family homes, apartments, and condominiums used as second homes or part-time residences rather than as the owner's primary residence. Payments will follow the city's standard property tax schedule. The policy targets a segment of New York's real estate market that has drawn scrutiny for years, as state and city lawmakers have repeatedly proposed surcharges on luxury non-primary residences to capture revenue from domestic and international buyers who use New York properties only occasionally. Similar pied-à-terre tax proposals have circulated in the New York State Legislature for roughly a decade without previously becoming law.

Mamdani announced the tax's implementation in late July, framing it as a fulfillment of his campaign pledge to raise taxes on wealthy New Yorkers.

"On Tax Day earlier this year, I promised that we would tax the rich, and with our new pied-à-terre tax, that is exactly what we have done," Mamdani said.

"Today is the first step in implementing this tax and collecting critical revenue to fund our parks, schools and libraries. We will diligently implement this law and ensure that we collect what working New Yorkers – and this city – deserve," the mayor added.

Tax Roll Clarification

In late July, the city published a list of more than 900,000 properties in a "supplemental market value roll" without initially clarifying that the vast majority would not be subject to the new surcharge. The list was updated on Saturday to specify that the New York City Department of Finance had only sent surcharge letters to owners of approximately 17,000 properties, and that only those recipients need to apply for an exemption.

Tax Rates

The pied-à-terre tax imposes the following surcharges on single-family homes:

• 0.8% on homes valued between $5 million and $15 million
• 1.05% on homes valued between $15 million and $25 million
• 1.3% on homes valued over $25 million

Condominiums and co-ops carry higher rates:

• 4% on those valued between $1 million and $3 million
• 5.25% on those valued between $3 million and $5 million
• 6.5% on those valued over $5 million

Exemption Deadline and Requirements

Property owners notified that they may be subject to the tax have until September 18 to submit an exemption application, according to the New York City Department of Finance. The deadline was extended from the original date of August 21.

Applicants claiming a primary-residence exemption must provide either their most recent federal or state tax return, or their driver's license. Acceptable alternatives include a voter ID card or other documentation establishing primary residence.

Tenants seeking an exemption must submit primary-residence documents along with a copy of their current lease and one additional rental document, such as a utility bill, proof of rent payment, or a renter's insurance policy. Alternatively, tenants may file an affidavit accompanied by two additional rental documents.

FOX Business' Sumner Park and James Cirrone contributed to this report.