NYC Mayor Seeks First Property Tax Hike in Decades to Cover Budget Deficit

Mamdani says tax hike may be necessary if state lawmakers don't impose new taxes on wealthy residents or businesses.

Published on Feb. 19, 2026

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New York City Mayor Zohran Mamdani announced plans to raise the city's property taxes for the first time in more than two decades in order to close a roughly $5 billion budget deficit. Mamdani said the tax hike would be necessary if state lawmakers in Albany do not impose new taxes on wealthy residents or businesses operating in the city.

Why it matters

This proposed property tax hike would be the first such increase in 20 years and comes as the city is still recovering from the fallout of a recent winter storm that caused basic services like trash collection and ice removal to break down. The move is seen as a clear sign that Mamdani, who ran as a democratic socialist, intends to follow through on his promise to tax the city's working class and property owners.

The details

Mamdani unveiled a $127 billion city budget and said the tax hike would be necessary to close the budget deficit. The last time New York City significantly raised property taxes was in 2003, when then-Mayor Michael Bloomberg approved increases following the September 11th terrorist attacks.

  • The proposed property tax hike would be the first such increase in more than two decades.
  • The last time New York City significantly raised property taxes was in 2003, following the September 11th terrorist attacks.

The players

Zohran Mamdani

The current mayor of New York City who is proposing the property tax hike.

Kathy Hochul

The Democratic governor of New York who would need to sign off on the tax hike.

Michael Bloomberg

The former mayor of New York City who approved property tax increases in 2003 following the September 11th attacks.

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What they’re saying

“We do not want to have to turn to such drastic measures to balance our budget, but faced with no other choice, we will be forced to.”

— Zohran Mamdani, Mayor of New York City (Gothamist)

What’s next

New York Democratic Gov. Kathy Hochul would need to sign off on the proposed property tax hike.

The takeaway

This proposed property tax increase highlights the difficult fiscal challenges facing New York City as it works to recover from the impacts of a recent winter storm and close a multi-billion dollar budget deficit. The move also underscores the political tensions between Mamdani's progressive agenda and the need to raise revenue from the city's working class and property owners.