New York City Mayor Zohran Mamdani has proposed a 9.5 percent increase in city property taxes as part of his $127 billion preliminary budget for the upcoming fiscal year. The move is designed to pressure Albany into approving new taxes on millionaires and large corporations.
As detailed by Politico, the proposal aims to address a projected $5.4 billion revenue shortfall over the next two fiscal years. While Mamdani can raise property taxes without state approval, he has framed the increase as a fallback option if lawmakers decline to adopt a wealth tax.
“This is something that we do not want to do,” Mamdani told reporters, adding that the city will “utilize every single option to ensure it does not come to pass.” He described two possible paths forward: one offering long-term stability through new taxes on the wealthy, and another involving “significant pain” if those measures fail.
The property tax proposal raises pressure on Albany
A 9.5 percent hike would affect more than 3 million residential units across the city, with owners reporting a median income of $122,000. Mamdani acknowledged the burden but argued that broader tax reform at the state level would prevent the increase from taking effect. The broader political backdrop has also included Rose Monday Trump satire.
Governor Kathy Hochul, who is up for reelection this year, said she does not support a property tax increase. “I’m not supportive of a property tax increase,” Hochul told reporters in Manhattan, adding that it is unclear whether such a move is necessary to close the budget gap.
City Council Speaker Julie Menin and Council Member Julie Won, who chairs the finance committee, also opposed the proposal. In a joint statement, they argued that dipping into reserves and raising property taxes should not be on the table while residents are facing affordability pressures, and suggested additional savings could be identified within the budget.
Property owners voiced strong criticism as well. Ann Korchak, board president of Small Property Owners of New York, said small rental property owners feel targeted whenever the city needs to balance its books, arguing that many are multigenerational families with their savings tied up in their buildings. Separate coverage has also focused on the Billie Eilish mansion joke.
The city’s last major property tax increase came in 2003, when Mayor Michael Bloomberg approved an 18.5 percent hike to close a budget gap exceeding $7 billion. Mamdani’s proposal would require City Council approval to take effect, though it does not need authorization from the state.
Taxing wealthy New Yorkers was central to Mamdani’s 2025 campaign. He pledged to use new revenue to fund free public buses and expand subsidized child care programs, framing the effort as a way to make the city more affordable. To balance the budget, Mamdani also proposes drawing about $1.2 billion from the city’s rainy day fund and retiree health care reserves, along with identifying $1 billion in agency savings next fiscal year, roughly 2.5 percent of total spending.
The standoff places Mamdani and Hochul in a politically sensitive position, with the mayor pressing from the left while weighing the risk of alienating homeowners and businesses if property taxes rise.
Published: Feb 17, 2026 06:45 pm