NYC Mayor Mamdani Warns Property Tax Hike May Be 'Last Resort' to Balance Budget

Without state cooperation on taxing the wealthy, NYC may need to raise property taxes, impacting middle-class residents.

Published on Feb. 19, 2026

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New York City Mayor Zohran Mamdani said that a property tax increase would be a last resort effort to balance the city's $5.4 billion budget deficit. Mamdani's preferred approach is to increase taxes on the wealthy and corporations, but he needs cooperation from New York Gov. Kathy Hochul, who has been lukewarm on the idea. Without Albany's willingness to hike income or corporate taxes, Mamdani is signaling he may need to turn to raising property taxes, which would hit the middle and working classes hard.

Why it matters

A property tax hike would disproportionately impact middle-class New Yorkers, as the city's property tax system favors single-family homes over multi-unit buildings where more lower-income residents live. This could make housing even less affordable in the city. However, Mamdani sees a property tax increase as a last resort, and is hoping to work with the state to find alternative revenue sources.

The details

Mamdani outlined two potential paths forward to address the city's $5.4 billion budget deficit. His preferred option is to increase taxes on the wealthy and corporations, a key campaign promise. However, without cooperation from Albany, Mamdani is signaling he may need to raise property taxes by 9.5% as a last resort. This would hit middle-class New Yorkers the hardest, as multi-unit buildings are taxed at higher effective rates than single-family homes.

  • Mamdani presented his preliminary $127 billion budget on Tuesday, February 17, 2026.

The players

Zohran Mamdani

The current mayor of New York City.

Kathy Hochul

The governor of New York state.

Mark Levine

The elected New York City Comptroller.

Nicole Malliotakis

A Republican U.S. Representative whose district includes Staten Island and parts of Southern Brooklyn.

Rita Jefferson

A local analyst at the Institute on Taxation and Economic Policy who focuses on equity.

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What they’re saying

“This is a preliminary budget. This is a budget that reflects the only tools that the city has at its disposal.”

— Zohran Mamdani, Mayor of New York City (businessinsider.com)

“To rely on a property tax increase and a significant draw-down of reserves to close our gap would have dire consequences. Our property tax system is profoundly unfair and inconsistent, and an across-the-board increase in this tax would be regressive.”

— Mark Levine, New York City Comptroller (businessinsider.com)

“Year after year, City Hall squeezes the middle-class for more by raising the property tax levy, and now Mamdani wants to raise the rate, making the American dream of homeownership less attainable and the cost of housing even more unaffordable for property owners and renters alike.”

— Nicole Malliotakis, U.S. Representative (businessinsider.com)

What’s next

Mamdani said he will continue working with Albany to avoid a property tax increase, which he called a 'tool of very last resort'. The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights the difficult budget choices facing New York City, as it struggles to balance the needs of middle-class residents and the wealthy. Without state cooperation on tax increases, the city may have to resort to regressive property tax hikes that could further strain affordability for many New Yorkers.