NYC Mayor Proposes First Property Tax Hike in Decades

Mamdani says tax increase needed to cover $5 billion budget deficit

Published on Feb. 20, 2026

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New York City Mayor Zohran Mamdani announced plans to raise property taxes for the first time in over 20 years in order to close a roughly $5 billion budget deficit. Mamdani, who ran as a democratic socialist, said the city may have to take "drastic measures" if state lawmakers in Albany do not impose new taxes on wealthy residents or businesses operating in the city.

Why it matters

This proposed tax hike would mark a significant shift in New York City's fiscal policy, as the city has not significantly raised property taxes since 2003 following the 9/11 attacks. The move could have major implications for homeowners and businesses in the city, especially during a time of economic uncertainty.

The details

According to the report, Mamdani unveiled a $127 billion city budget and said the property tax increase would be necessary if state lawmakers do not impose new taxes on the wealthy or businesses. The last time NYC significantly raised property taxes was in 2003 under then-Mayor Michael Bloomberg.

  • On February 17, 2026, Mayor Mamdani announced the proposed property tax hike.
  • The last time NYC significantly raised property taxes was in 2003.

The players

Zohran Mamdani

The current mayor of New York City, who ran as a democratic socialist and is now proposing the first property tax hike in the city in over two decades.

Kathy Hochul

The Democratic governor of New York, who would need to sign off on the proposed property tax hike in NYC.

Michael Bloomberg

The former mayor of New York City who approved property tax increases in 2003 following the 9/11 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

Governor Kathy Hochul would need to approve the proposed property tax hike in order for it to take effect.

The takeaway

This proposed property tax increase highlights the difficult fiscal challenges facing New York City, as it grapples with a multi-billion dollar budget deficit. The move could have significant impacts on residents and businesses, and underscores the political tensions around taxation and government spending in the city.