New York City Mayor Seeks Tax Hikes to Plug Budget Gap

Mamdani urges state lawmakers to allow him to raise taxes on top earners to fund his agenda

Published on Feb. 13, 2026

Got story updates? Submit your updates here. ›

New York City Mayor Zohran Mamdani traveled to Albany this week to plead with state lawmakers for help plugging a multi-million budget gap. Testifying before a budget hearing, the Democratic socialist urged lawmakers to provide more funding for the city and allow him to raise taxes on top earners to whittle down revenue shortfalls and fund his lefty agenda.

Why it matters

Mamdani's request for tax hikes on the wealthy highlights the ongoing budget challenges facing New York City, as well as the political tensions between the city's progressive leadership and the state's more moderate governor. The outcome of this budget battle could have significant implications for the city's fiscal health and Mamdani's ability to implement his policy agenda.

The details

Mamdani is seeking a 2% increase in personal income taxes on those earning $1 million or more per year, as well as an increase in the combined corporate tax rate to just over 22%. He says these tax hikes are needed to reduce a deficit he 'inherited' from former Mayor Eric Adams, but the new funding would also be used to help pay for free bus service, tuition-free college, and other progressive initiatives. However, Governor Kathy Hochul has already ruled out allowing the city to raise taxes on the wealthiest residents, calling it a 'non-starter'.

  • Mamdani testified before a budget hearing on Wednesday, February 12, 2026.
  • Last week, Mamdani said the projected budget gap for the next two years could top $12.6 billion, but on Wednesday he told lawmakers that those numbers have been revised down to about $7 billion.

The players

Zohran Mamdani

The Democratic socialist mayor of New York City who is seeking to raise taxes on the wealthy to plug a multi-million dollar budget gap and fund his progressive agenda.

Kathy Hochul

The Democratic governor of New York who has ruled out allowing New York City to raise taxes on the wealthiest residents, calling it a 'non-starter'.

Eric Adams

The former Democratic mayor of New York City, whom Mamdani has accused of 'negligent budgeting' and leaving behind a financial mess.

Got photos? Submit your photos here. ›

What they’re saying

“I'm asking for a 2% raise in personal income taxes on the most affluent New Yorkers, someone earning $1 million a year. The top 1% of New York City can afford to contribute $20,000 more in taxes.”

— Zohran Mamdani, Mayor of New York City

“New York City is still placed on a ledge. The most responsible way off is with dedicated recurring revenue that can provide the services New Yorkers deserve.”

— Zohran Mamdani, Mayor of New York City

What’s next

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 growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.