NYC Mayor Calls for 2% Tax Hike on Wealthy Residents

Mamdani proposes increase to help address city's budget deficit

Published on Feb. 12, 2026

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New York City Mayor Zohran Mamdani has called for a 2% tax increase on residents making over $1 million per year, along with a hike in the state's corporate tax rate, as part of efforts to address the city's $7 billion budget gap.

Why it matters

The proposed tax increases on high-income individuals and corporations are aimed at generating additional revenue to fund city services without compromising the budget, though the plan faces opposition from the state governor.

The details

During testimony before the New York State Senate's 2026 budget hearing, Mamdani said the city's budget deficit has decreased from $12 billion to $7 billion through cost-saving measures, updated revenue estimates, and use of reserves. However, he believes the wealthiest individuals and most profitable corporations should contribute more to help the city's financial situation.

  • On February 11, 2026, Mamdani called for the tax increases during testimony before the New York State Senate.
  • Mamdani plans to release the city's preliminary budget on Tuesday.

The players

Zohran Mamdani

The Democratic mayor of New York City who is proposing the tax increases.

Kathy Hochul

The Democratic governor of New York who would need to approve any tax increases proposed by Mamdani.

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What they’re saying

“I believe the wealthiest individuals and most profitable corporations should contribute a little more so that everyone can live lives of dignity.”

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

“We're able to make transformative investments in our future. Without raising taxes. Without saddling the next generation with mounds of debt.”

— Kathy Hochul, Governor of New York (ksgf.com)

What’s next

Mamdani plans to release the city's preliminary budget on Tuesday, which will provide more details on the proposed tax increases. Governor Hochul would need to approve any tax hikes proposed by the mayor.

The takeaway

The mayor's call for higher taxes on the wealthy and corporations reflects an effort to address New York City's budget challenges, though the plan faces resistance from the state's governor who has opposed tax increases.