New York Mayor Threatens Property Tax Hike Without Wealth Tax

Mamdani says 9.5% increase could be coming if state doesn't pass new tax on the wealthy

Published on Feb. 22, 2026

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Zohran Mamdani, the democratic socialist mayor of New York City, has proposed two new budget plans that include a threat to raise property taxes by 9.5% if the state government does not pass a new wealth tax. The move puts pressure on Governor Kathy Hochul, who is seeking re-election this year, to support the tax on the city's wealthiest residents.

Why it matters

New York City has over 3 million single-family homes, co-ops and condos, as well as more than 100,000 commercial buildings. A 9.5% property tax hike would have a significant financial impact on homeowners, renters, and businesses across the five boroughs. The wealth tax proposal is part of a broader debate around income inequality and how to fund critical public services.

The details

Mayor Mamdani's first budget plan calls for a new wealth tax on New Yorkers with assets over $1 billion. If the state legislature does not pass this tax, his alternative budget includes a 9.5% increase in property taxes. This would be the largest hike in decades and comes as the city and state are still recovering from the economic impacts of the COVID-19 pandemic.

  • Mayor Mamdani unveiled the two budget proposals on February 18, 2026.

The players

Zohran Mamdani

The democratic socialist mayor of New York City who has proposed a new wealth tax and threatened a 9.5% property tax increase if it is not passed.

Kathy Hochul

The Governor of New York who is seeking re-election this year and will face pressure to support the proposed wealth tax to avoid the property tax hike.

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What they’re saying

“We must make the wealthiest among us pay their fair share to fund the critical services and programs our city needs.”

— Zohran Mamdani, Mayor of New York City

What’s next

The New York State legislature will need to decide whether to pass the proposed wealth tax in the coming months. If it is not approved, Mayor Mamdani has said the 9.5% property tax hike will be implemented.

The takeaway

This budget battle highlights the ongoing debate around wealth inequality and how to fund essential public services in major cities like New York. The outcome could have significant financial implications for both residents and businesses across the five boroughs.