NYC Mayor Proposes Raising Property Taxes to Fill $5 Billion Budget Gap

Mamdani looks to hike taxes, raid city reserves to address fiscal challenges

Published on Feb. 19, 2026

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New York City Mayor Zohran Mamdani is proposing raising the city's property taxes for the first time in over 20 years, as well as tapping into the city's reserve funds, in an effort to fill a roughly $5 billion budget shortfall. Mamdani's plan comes a day after the state announced $1.5 billion in additional aid to the city, but the mayor argues more state support is needed to address the city's fiscal challenges.

Why it matters

Raising property taxes could prove politically contentious for Mamdani, who campaigned on reforming the property tax system that has been criticized for overburdening lower- and middle-income residents. The last time the city increased property tax rates was under former Mayor Michael Bloomberg in the early 2000s.

The details

Mamdani is proposing a combination of raising property taxes and tapping into the city's reserve funds to address the roughly $5 billion budget gap. The mayor had previously described the city's budget deficit as $12.6 billion, but that figure has since been revised down by $5 billion due to higher than expected tax revenue. Mamdani has pressed the state to provide more funding and raise taxes on corporations and wealthy residents, but Governor Kathy Hochul has resisted those requests.

  • Mamdani will unveil his preliminary budget proposal, including the property tax hike plan, on Tuesday afternoon.
  • The city took in over $33 billion in property tax revenue in fiscal year 2025.

The players

Zohran Mamdani

The current mayor of New York City who is proposing raising property taxes and tapping into the city's reserve funds to address a budget shortfall.

Mark Levine

The New York City Comptroller who described Mamdani's proposal as a "pretty extreme option".

Kathy Hochul

The Governor of New York who announced $1.5 billion in additional state aid to the city, but has resisted Mamdani's calls for further state funding and tax increases on corporations and the wealthy.

Eric Adams

The former mayor of New York City whose administration Mamdani blamed for underbudgeting expenses, contributing to the current fiscal challenges.

Michael Bloomberg

The former mayor of New York City who oversaw the last property tax rate increase in the early 2000s.

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What they’re saying

“He's put a pretty extreme option on the table, which is a combination of raising property taxes and taking money from reserves and relying on some pretty aggressive revenue projections to boot.”

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

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

Raising property taxes in New York City is a politically sensitive issue that could prove challenging for Mayor Mamdani, who campaigned on reforming the property tax system. The mayor's proposal highlights the city's ongoing fiscal challenges and the difficult tradeoffs required to address a sizable budget gap.