New York City Mayor Zohran Mamdani is proposing the first property tax increase in more than two decades to help close a $5 billion budget shortfall. While Governor Kathy Hochul has committed $1.5 billion in additional state aid, Mamdani is also advocating for higher taxes on wealthy residents and corporations. The mayor argues the city faces a $12.6 billion two-year deficit, though recent revenue gains have reduced the immediate gap. The proposal marks a significant fiscal and political moment for the city.
NYC Mayor Mamdani proposes the first property tax hike in 20+ years to close a $5B budget gap. Hochul pledges $1.5B in aid, but Mamdani also pushes a 2% tax on high earners. Homeowners already face 5.6% higher assessments. Political storm brewing. #NYC #PropertyTax #Mamdani pic.twitter.com/QHsKJuVnTu
— Matthew Brady (@mattbrady775) February 17, 2026
- Zohran Mamdani plans the first New York City property tax hike in over 20 years to address a projected $5 billion budget gap.
- The proposal will be unveiled in his preliminary budget.
- NYC Comptroller Mark Levine called the plan “a pretty extreme option,” citing tax hikes, reserve use, and aggressive revenue projections.
- Kathy Hochul pledged $1.5 billion in additional state aid for the current and next fiscal years, plus $510 million in future support.
- Mamdani also proposed a 2% personal income tax surcharge on high earners and a corporate tax hike, both requiring state approval.
- Property taxes can be raised through the city budget process without state approval.
- NYC homeowners recently saw assessed property values rise 5.6%, generating major additional revenue.
- Mamdani previously cited a $12.6 billion two-year deficit, partly blaming former Mayor Eric Adams for underbudgeting.
- NYC collected $33+ billion in property tax revenue in FY2025.
- The last property tax increase occurred under former Mayor Michael Bloomberg in the early 2000s.
- Mamdani’s campaign included proposals for free public transit, housing programs, universal childcare, and a $30 minimum wage.
