If you own a primary residence up north and a second home here in Palm Beach County, you have probably noticed the headlines. New York. Rhode Island. Montana. Even a handful of counties in Hawaii. Lawmakers across the country are quietly putting a target on second homes, and the conversation is moving faster than most owners realize.
Many homeowners are now paying closer attention to rising second home taxes across multiple states.
For seasonal residents along Delray Beach, Boca Raton, and West Palm Beach, this is not a story to scroll past. The decisions being made in Albany and Providence right now could shape what it costs to own property up there while spending your winters down here. Whether you split time between Manhattan and Mizner Park or between a lake house in the Northeast and an oceanfront estate in Ocean Ridge, the financial calculus of owning more than one home is shifting in real time.
What Is Actually Happening
In April 2026, New York Governor Kathy Hochul publicly backed a proposal to slap an annual surcharge on second homes in New York City valued at five million dollars or more. According to the Governor’s announcement, the so-called pied-à-terre tax would generate roughly 500 million dollars a year to help close the city’s massive budget gap. Around 13,000 properties would qualify.
These new second home taxes are becoming a growing concern for seasonal property owners.
New York is not alone. Rhode Island enacted a similar surcharge in 2025, nicknamed the Taylor Swift Tax, that targets non-owner-occupied homes worth over one million dollars starting July 2026. Montana passed legislation the same year that applies a higher flat property tax rate to vacation properties and second homes. Several counties in Hawaii already do it. South Carolina and Vermont have versions at the state level.
According to coverage in Yahoo Finance, at least eight states now have active or proposed second-home taxes on the books. The pattern is clear. Lawmakers are looking at second homes as a politically convenient way to raise revenue without touching the working homeowner.
Why This Matters Even If Your Florida Home Is Not Targeted
Florida is not currently considering this kind of surcharge, and given the state’s stance on property taxes and its reliance on attracting wealth from other states, it is unlikely to follow that path anytime soon. That is part of why so many of our clients made the move in the first place.
For many residents, avoiding higher second home taxes is one reason Florida remains attractive.
But here is the catch. Most of the homeowners we serve in South Palm Beach County still own a property somewhere else. A brownstone in Brooklyn. An apartment on the Upper East Side. A weekend place in Newport. A summer house in Litchfield County. Those are the homes now in the crosshairs.
If you are an owner whose New York residence is your secondary home and your Florida estate is your primary, you may already be exempt from these proposals. But the burden of proof is shifting. As CNBC reported, New York will have to build a brand new system for verifying both non-residency and property value, and legal experts are predicting years of disputes over how those rules are applied.
That means more documentation. More scrutiny. More appraisals. And for owners who hold property through LLCs or trusts, more complexity sorting out who actually owes what.
Financial advisors are increasingly discussing how second home taxes may affect long-term property planning.
The Smart Move Right Now
The owners who handle this well are the ones who get ahead of it. That looks like a few things.
First, make sure your residency status is clean and well documented. Florida residency is established through clear actions like filing a Declaration of Domicile, registering to vote, getting a Florida driver’s license, and spending the majority of your year in the state. If your Palm Beach home is truly your primary, the paperwork should reflect that.
Second, talk to your accountant and estate attorney about your northern property before any new tax takes effect. As Better.com noted, even though the New York proposal still has to pass the state legislature, the political momentum is real. Modeling the cost now is a lot easier than scrambling later.
Third, treat your Palm Beach home like the primary residence it is. That means consistent year-round care, documented presence, and a level of maintenance that reflects ownership rather than seasonal occupation. This is something we handle for our clients every day, whether they are here or up north.
The Bigger Picture
What is happening in New York and Rhode Island is part of a broader trend. The second home is becoming a more visible, more taxable, more scrutinized asset class. For Palm Beach County owners, the takeaway is simple. Your Florida estate is likely your strongest position. Protect it. Document it. And make sure the home that carries your primary residency is also the home that is being cared for like it.
As legislation evolves, understanding second home taxes is becoming essential for luxury homeowners.
If you are heading north for the summer and want to talk through how we keep your Palm Beach property in primary residence shape year-round, give Thomas a call at 561-771-6030. We will make sure your home reflects the way you actually live.
Best, Thomas Rymer Second Home Management