New York City Mayor Faces Ultimatum on Tax Hikes

Mamdani threatens property tax increase if state doesn't raise taxes on wealthy

Published on Feb. 23, 2026

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New York City Mayor Zohran Mamdani is giving Governor Kathy Hochul an ultimatum - raise taxes on wealthy individuals and corporations, or he will raise property taxes in New York City by 9.5%. Mamdani says the city has a huge budget shortfall that must be filled to enact his budget plan. However, Governor Hochul has said she will not support a tax hike on the wealthy. If the state does not act, Mamdani plans to push the property tax increase through the City Council, which the Council Speaker says they will not approve.

Why it matters

This standoff between the mayor and governor highlights the ongoing tensions over tax policy in New York. A property tax hike could drive more residents and businesses out of the city, while raising taxes on the wealthy faces opposition at the state level. The outcome could have major implications for the city's fiscal health and Mamdani's political future.

The details

Mayor Mamdani is seeking to raise taxes on the wealthy in order to address a significant budget shortfall in New York City. However, Governor Hochul has stated she will not support such a tax increase at the state level. As a result, Mamdani is threatening to raise property taxes by 9.5% if the state does not act. This would mark the first property tax hike in the city since 2002, when then-Mayor Michael Bloomberg enacted an 18.5% increase to address a fiscal crisis. That prior tax hike was highly unpopular and led to an exodus of residents and businesses from the city.

  • In 2002, Mayor Bloomberg negotiated an 18.5% property tax increase with the city council.
  • Between 2002 and 2005, more people were moving out of New York City than moving in from other parts of the country.
  • The 2002 property tax increase generated around $839 million in its first partial fiscal year, and close to $1.7 billion the following full year.
  • By 2007, the city was in such good financial shape that the mayor and city council lowered property taxes by 7%.

The players

Zohran Mamdani

The current mayor of New York City who is threatening to raise property taxes if the state does not raise taxes on the wealthy.

Kathy Hochul

The governor of New York who has said she will not support a tax increase on the wealthy.

Julie Menin

The speaker of the New York City Council who says the council will not approve a property tax hike.

Michael Bloomberg

The former mayor of New York City who enacted an 18.5% property tax increase in 2002.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.