NYC Mayor Threatens Middle-Class Homeowners with Tax Hike

Mamdani says property tax increase is last resort if Albany doesn't raise taxes on the wealthy

Published on Feb. 22, 2026

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New York City Mayor Zohran Mamdani has announced a plan to raise property taxes by 9.5% on middle-class homeowners if the state government under Governor Kathy Hochul does not increase income taxes on the ultra-wealthy. Mamdani argues the property tax hike would be a "last resort" to address the city's $5.4 billion budget shortfall, which he blames on "mismanagement" by the previous administration.

Why it matters

This proposal highlights the ongoing tensions between the city and state governments over how to address budget deficits, with Mamdani pushing Hochul to raise taxes on high-income earners rather than placing the burden on middle-class homeowners. The move could have significant political implications, as Mamdani threatens voter retribution against Hochul if she does not comply with his demands.

The details

Mamdani's preliminary budget proposal would affect over 3 million households and 100,000 commercial properties across New York City, generating an estimated $3.7 billion in annual revenue. Property taxes already represent over 27% of homeownership costs in the city, compared to a national average of 22.6%. New York has one of the highest effective property tax rates in the country at 1.45%, nearly double the national average.

  • Mamdani announced the plan in a preliminary budget proposal on Tuesday, February 18, 2026.
  • The proposed 9.5% property tax hike would take effect in the 2023 fiscal year.

The players

Zohran Mamdani

The newly elected mayor of New York City who is proposing the property tax hike as a "last resort" to address the city's budget shortfall.

Kathy Hochul

The governor of New York state, whose approval is required to raise income taxes on high-earners instead of the property tax hike proposed by Mamdani.

Eric Adams

The former mayor of New York City, whose "mismanagement" Mamdani blames for the current budget crisis.

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What they’re saying

“The onus for resolving this crisis should not be placed on the backs of working and middle class New Yorkers.”

— Zohran Mamdani, Mayor of New York City

“If we do not fix this structural imbalance and do not heed the calls of New Yorkers to raise taxes on the wealthy, this crisis will not disappear. It will simply return, year after year, forcing harder and harsher choices each time.”

— Zohran Mamdani, Mayor of New York City

“A strong New York City means a stronger New York State. New Yorkers expect the state and the city to work together, and I'm proud to partner with the Mayor to deliver for working families.”

— Kathy Hochul, Governor of New York

What’s next

The mayor's proposal will require approval from the New York City Council. If the state government under Governor Hochul does not agree to raise taxes on high-earners, the property tax hike could be implemented as a "last resort" measure.

The takeaway

This standoff between the city and state governments highlights the ongoing debate over how to address budget deficits and the equitable distribution of the tax burden. The mayor's threat to raise property taxes on middle-class homeowners could have significant political ramifications if the state does not comply with his demands.