NYC Mayor Proposes Property Tax Hike, Sparking Backlash

Landlords warn Mamdani's plan could 'drive thousands of rent-stabilized buildings into bankruptcy'

Published on Feb. 21, 2026

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New York City Mayor Zohran Mamdani has proposed a 9.5% increase in citywide property taxes as part of his $127 billion preliminary budget, aimed at closing a projected $5.4 billion revenue shortfall. However, the plan has faced strong opposition from landlords and city officials, who warn it could devastate the city's affordable housing stock.

Why it matters

The proposed property tax hike is a controversial move by the self-proclaimed Democratic Socialist mayor, who is using it as leverage to force through higher taxes on the wealthy. While the mayor says the increase is necessary to address the budget gap, landlords and other critics argue it will cripple rent-stabilized buildings and exacerbate the city's affordability crisis.

The details

Mamdani's preliminary budget includes two paths to balance the books - one relying on state-level action to raise income taxes on millionaires and corporate taxes, and a fallback plan to raise citywide property taxes by 9.5%. This would be the first such increase since the early 2000s and is expected to generate $3.7 billion in annual revenue. However, landlord groups like the New York Apartment Association warn the hike could 'drive thousands of rent-stabilized buildings into further bankruptcy'.

  • Mamdani unveiled his $127 billion preliminary budget this week for the next fiscal year, which begins in July.
  • The City Council must adopt a balanced budget by the start of the next fiscal year on July 1.

The players

Zohran Mamdani

The 34-year-old mayor of New York City who has proposed the property tax hike as part of his preliminary budget.

Kathy Hochul

The governor of New York who has publicly opposed new taxes on the rich, a key part of Mamdani's preferred budget plan.

Kenny Burgos

The CEO of the New York Apartment Association, which represents property owners and managers providing affordable housing in New York.

Julie Menin

The New York City Council Speaker who has criticized Mamdani's proposal to raise property taxes.

Linda Lee

The New York City Council Member who chairs the chamber's finance committee and has condemned Mamdani's property tax hike plan.

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What they’re saying

“Mayor Mamdani promised that he would fight for property tax reform to help overtaxed apartment buildings when he was on the campaign trail. Now he is proposing an across the board tax hike that will drive thousands of rent-stabilized buildings into further bankruptcy.”

— Kenny Burgos, CEO, New York Apartment Association (Newsweek)

“The mayor has declared war on thousands of immigrant property owners, most of them multigenerational families, who have their entire life's savings invested in their small buildings.”

— Ann Korchak, Board President, Small Property Owners of New York (The New York Times)

“At a time when New Yorkers are already grappling with an affordability crisis, dipping into rainy day reserves and proposing significant property tax increases should not be on the table whatsoever.”

— Julie Menin, New York City Council Speaker (Newsweek)

What’s next

The City Council must adopt a balanced budget by the start of the next fiscal year on July 1, and significant changes to Mamdani's proposal are expected to be introduced before then.

The takeaway

Mamdani's proposed property tax hike has sparked a fierce backlash from landlords and city officials who warn it could devastate the city's affordable housing stock. The mayor is using the unpopular measure as leverage to force through higher taxes on the wealthy, but faces an uphill battle to get the plan approved by the City Council.