The One Tax the Rich Can’t Escape
New York's proposed pied-à-terre tax on high-value second homes is unlikely to drive wealthy residents away, as many remain deeply connected to the city. Unlike income or capital gains taxes, a tax on physical property in a culturally and economically vital city is harder for the rich to escape. While some billionaires have relocated to tax-friendly states like Florida, their businesses often remain in high-cost cities, suggesting that lifestyle and ties matter more than tax avoidance.
- ▪New York City’s proposed pied-à-terre tax targets second homes valued above $5 million with an annual surcharge.
- ▪Billionaires like Jeff Bezos, Ken Griffin, and Mark Zuckerberg have moved to Miami but kept their companies headquartered in cities like Seattle and Silicon Valley.
- ▪Florida allows wealthy individuals to establish residency easily, avoiding state capital-gains taxes by limiting time spent in higher-tax states.
- ▪Miami’s population of high-income residents has grown, while lower- and middle-income residents are leaving due to rising housing costs and limited resources.
- ▪Research previously showed the wealthy rarely moved for tax reasons, but remote work has weakened the link between business location and residence.
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IdeasThe One Tax the Rich Can’t EscapeNew York’s proposed pied-à-terre tax is unlikely to chase anyone away.By Richard FloridaIllustration by Matteo Giuseppe Pani / The AtlanticMay 4, 2026, 7 AM ET ShareSave Listen−1.0x+Seek0:008:40A billionaire acquaintance of mine who moved from Manhattan to Miami during the pandemic was talking with me recently about New York City’s proposed pied-à-terre tax—an annual surcharge on second homes that are valued above $5 million. When Mayor Zohran Mamdani and Governor Kathy Hochul announced the proposal earlier this month, the tabloids and the business press insisted that it would chase the rich away. But my acquaintance didn’t seem too worried. He had kept his New York apartment, as many recent arrivals to Miami do, and had no intention of giving it up.
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