Albany, NY (May 14, 2026) — New York lawmakers are reportedly considering a new tax aimed at high-end all-cash home purchases in New York City as part of ongoing negotiations over the state budget.

According to reports, the proposal would apply to residential properties purchased entirely in cash for $1 million or more. Officials expect the measure could generate roughly $160 million in additional revenue, helping address mounting fiscal pressures facing the city.

The proposed tax is part of broader discussions surrounding the state’s FY2027 budget, which lawmakers and Governor Kathy Hochul are continuing to finalize. Hochul’s office said there is already a general agreement on many major components of the budget package, though final legislative language and details are still being completed.

Additional taxes on real estate could further cool New York City’s housing market and discourage investment.

The proposal comes amid an ongoing push by state and city leaders to identify new revenue streams while avoiding broader tax increases on working residents. Recent discussions have also included taxes targeting luxury second homes and other high-value assets as officials attempt to close budget gaps without major cuts to public services.

If approved, the measure would mark another significant shift in New York’s approach to taxing high-end real estate transactions as affordability and fiscal stability remain central issues in state politics.