NYC Mayor Threatens Property Tax Hike if No Wealth Tax

Mamdani says tax increase is a 'last resort' to close budget gap

Published on Feb. 19, 2026

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New York City Mayor Zohran Mamdani has proposed raising property tax rates by 9.5% as a 'last resort' measure to close a $5.4 billion budget gap, unless he can persuade Governor Kathy Hochul to implement a new tax on the wealthy. The proposed property tax increase would affect over 3 million homes and 100,000 commercial buildings in the city.

Why it matters

Mayor Mamdani, a democratic socialist, is seeking new revenue sources to fund his agenda, but faces opposition from the more centrist Governor Hochul who has rejected calls for raising income taxes on the wealthy. The property tax hike proposal highlights the political tensions between the city and state leadership over how to address the city's fiscal challenges.

The details

Mamdani's $127 billion budget plan would raise property taxes by 9.5%, generating an additional $14.8 billion over four years. However, the mayor said he would prefer to convince Hochul to raise income taxes on high earners instead. Hochul has rejected the idea of raising income taxes, arguing it would burden working New Yorkers, and has criticized the property tax hike proposal, suggesting cost-cutting and updated accounting could make it unnecessary.

  • Mayor Mamdani delivered his preliminary spending plan on Tuesday, February 17, 2026.
  • The proposed 9.5% property tax increase would take effect on July 1, 2026, following revisions and negotiations with the City Council.

The players

Zohran Mamdani

The newly elected democratic socialist mayor of New York City who has proposed raising property taxes by 9.5% as a 'last resort' to close a $5.4 billion budget gap.

Kathy Hochul

The Governor of New York who has rejected calls to raise income taxes on the wealthy and criticized Mamdani's property tax hike proposal, suggesting cost-cutting and updated accounting could make it unnecessary.

Eric Adams

The former mayor of New York City, whom Mamdani has blamed for inaccurate budgeting that left the city with a $5.4 billion fiscal gap.

Bruce Blakeman

The Nassau County executive and Republican nominee for governor, who criticized Hochul's $1.5 billion infusion of state funds into the New York City budget as prioritizing the city over the rest of the state.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The City Council will need to approve the property tax increase proposal before it can be implemented.

The takeaway

This budget standoff between the city's progressive mayor and the state's more centrist governor highlights the ongoing political tensions over how to address New York City's fiscal challenges, with the property tax hike proposal serving as a potential flashpoint in the debate over raising taxes on the wealthy versus cutting costs.