New York City Mayor Zohran Mamdani has proposed a new tax targeting some of the most expensive homes in the city, a move that could impact billionaires including Amazon founder Jeff Bezos and Dell CEO Michael Dell. The proposal, part of a broader state budget plan, focuses on luxury properties that are not used as primary homes. Officials say the goal is to raise revenue and ensure that wealthy property owners contribute more, but critics argue it could discourage investment in the city. The tax, referred to as a “pied-à-terre tax,” would apply to homes worth over $5 million that are not the owner’s main residence, says a Business Insider report. It is expected to generate around $500 million annually, though details about how it will be calculated are still unclear.
Jeff Bezos’ multiple luxury homes in New York
As per the report, Jeff Bezos, one of the world’s richest individuals, could be among those affected. Despite moving his primary residence to Miami, Bezos continues to own several high-value properties in New York City. Over the years, he has spent more than $100 million buying multiple apartments in a Manhattan building.Since these properties are not his main residence, they could fall under the proposed tax. The move highlights how global billionaires often maintain homes in multiple cities, making them potential targets under such policies.
Michael Dell: Record-setting New York apartment
Michael Dell, founder of Dell Technologies, may also be impacted by the proposal. Dell owns a luxury penthouse in Manhattan that reportedly cost around $100 million, making it one of the most expensive residential purchases in the city at the time.Dell mostly lives in Texas, but he also has a property in New York that he sees as an investment and a second home. This property falls under the new tax plan.
Other billionaires that may be affected by Mamdani’s new tax
Several other wealthy individuals could also be affected by the proposed tax. These include hedge fund executives, real estate developers, business leaders and celebrities who own high-end apartments in New York but live elsewhere.The list includes US President Donald Trump, Jay-Z and Beyoncé, hedge fund titan Steve Cohen, Ken Griffin, among others. Officials estimate that around 13,000 properties could fall under the new tax.Supporters of the proposal say it targets only the “richest of the rich” and will help generate funds for public services. Critics, on the other hand, say that these kinds of taxes could drive wealthy investors away from New York and hurt the local economy by making people spend less. The proposal is still under discussion, and key details—such as how property values will be assessed and how the tax will be enforced—have not been finalised. If approved, the tax could come into effect in 2026, adding a new layer of cost for luxury property owners in the city.
