NYC Mayor Warns of Property Tax Hike if State Rejects Wealth Tax

Mamdani says 9.5% increase likely if Albany doesn't approve 2% income tax on wealthy

Published on Feb. 22, 2026

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New York City Mayor Zohran Mamdani warned on Tuesday that property taxes will be raised by 9.5% if the state of New York does not approve a proposed 2% income tax hike on residents earning more than $1 million annually. Mamdani said the city is facing a $5.4 million budget deficit and that the tax increase is necessary to address the shortfall.

Why it matters

The potential property tax hike would impact over 3 million residential units and 100,000 commercial buildings in New York City, a significant burden on residents and businesses. The dispute between the city and state highlights ongoing tensions over taxation and spending priorities.

The details

Mayor Mamdani said there are "two paths" forward - one with "long-term stability" if the wealth tax is approved, and another with "significant pain" if it is rejected. Governor Kathy Hochul has downplayed the mayor's warning, saying the city's budget is not finalized until July and there is time to negotiate. Hochul has proposed allocating $1.5 billion to help the city address its financial issues, but Mamdani claims Albany has taken too much from the city over the years.

  • On February 18, 2026, Mayor Mamdani announced the potential 9.5% property tax increase during a presentation of the city's preliminary 2027 fiscal year budget.
  • On the same day, Governor Hochul said she was "not certain there's a property tax increase" and that the city's budget is not resolved until July.

The players

Zohran Mamdani

The current mayor of New York City who warned of a potential 9.5% property tax increase if the state does not approve a proposed wealth tax.

Kathy Hochul

The governor of New York who has downplayed Mamdani's warning and proposed allocating $1.5 billion to help the city address its financial issues.

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What they’re saying

“There are two paths that we can walk: One that offers long-term stability, and a second one with significant pain that we deeply hope to avoid.”

— Zohran Mamdani, Mayor of New York City (TNND)

“[The city] is required by law to announce where it is today, but it's not resolved until there's a lot of negotiation with the city council and a review with his budget team of what their real expenses are and what they need to be, and that's not due until July, so there's a lot of time to work this out.”

— Kathy Hochul, Governor of New York (Spectrum News NY1)

What’s next

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The takeaway

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