NYC Mayor Proposes Property Tax Hike or Millionaire's Tax to Fill Budget Gap

Mamdani's proposals face political hurdles from Hochul and City Council

Published on Feb. 23, 2026

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New York City Mayor Zohran Mamdani has proposed two options to address a $5.4 billion budget gap over the next two years - raising property taxes by 9.5% or convincing Governor Kathy Hochul to increase taxes on individuals earning over $1 million per year. However, both proposals face significant political obstacles, with Hochul refusing to raise income taxes and the City Council skeptical of a property tax hike.

Why it matters

Mamdani's proposals highlight the difficult tradeoffs facing the city as it tries to raise revenue without overburdening middle-class and working-class residents. The property tax increase could disproportionately impact Black homeowners, while the millionaire's tax faces resistance from the governor and state lawmakers in an election year.

The details

Mamdani's $127 billion executive budget proposal includes a 9.5% increase in the average citywide property tax rate, which would raise taxes by about $700 per year for a typical one-, two- or three-family home. He has also proposed a 2-percentage point increase in the city's income tax on individuals earning over $1 million annually, which would raise their taxes by over 51%. However, neither option seems politically feasible - Governor Hochul has refused to raise income taxes, and City Council Speaker Julie Menin has indicated she won't support a property tax hike.

  • Mamdani announced a $12 billion budget deficit three weeks ago, which has since been reduced to $5.4 billion.
  • Mamdani made his budget proposals on Tuesday, February 18, 2026.

The players

Zohran Mamdani

The 34-year-old mayor of New York City who has proposed raising taxes on the wealthy and increasing property taxes as a way to address the city's budget deficit.

Kathy Hochul

The governor of New York who has steadfastly refused to raise income taxes and is unlikely to support Mamdani's proposal to increase taxes on high earners.

Julie Menin

The New York City Council Speaker who has indicated she won't support Mamdani's proposal to raise property taxes.

Donovan Richards

The Democratic Queens borough president who represents areas with a high concentration of Black homeowners and called Mamdani's property tax hike proposal a "nonstarter".

Citizens Budget Commission

A nonprofit think tank that provided examples of how Mamdani's proposed property tax increase would affect homeowners in different neighborhoods.

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What they’re saying

“Under no circumstance should we consider balancing our budget on the backs of working-class New Yorkers, especially seniors on fixed incomes and public sector workers who keep our city running.”

— Donovan Richards, Queens Borough President (New York Times)

“Someone earning a million dollars a year can afford to contribute $20,000 more.”

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

What’s next

The mayor and City Council will need to negotiate a final budget, and Mamdani will likely continue to push Governor Hochul to support a millionaire's tax, though Hochul has shown no signs of changing her position on raising income taxes.

The takeaway

Mamdani's budget proposals highlight the difficult choices facing New York City as it tries to raise revenue without overburdening middle-class and working-class residents. The political obstacles to both a property tax hike and a millionaire's tax suggest the mayor may need to find alternative ways to address the city's budget shortfall.