Mayor Proposes Property Tax Hike or Wealthy Tax in Budget Plan

Mamdani's budget proposal includes rent freeze for stabilized tenants, but maintains homeless encampment sweeps.

Published on Feb. 28, 2026

Got story updates? Submit your updates here. ›

Mayor Zohran Mamdani has unveiled a new budget proposal that includes either a property tax hike or a tax on the wealthy to fund city services. The plan also takes steps to fulfill a promise to freeze rents for stabilized tenants, but appears to reverse course on ending homeless encampment sweeps.

Why it matters

Mamdani's budget proposal represents a key test of his progressive agenda, as he looks to balance the needs of renters, the homeless, and the city's fiscal health. The plan has sparked debate over how to best address New York's affordable housing crisis and homelessness issues.

The details

Mamdani's budget proposal includes two options - either a property tax hike or a new tax on the wealthy to generate additional revenue for the city. The mayor also took action to freeze rents for stabilized tenants, fulfilling a campaign promise. However, he appears to have reversed course on ending homeless encampment sweeps, which had been another key pledge.

  • Mamdani unveiled the budget proposal on Wednesday, February 19, 2026.
  • The mayor previously promised to freeze rents for stabilized tenants and end homeless encampment sweeps.

The players

Zohran Mamdani

The mayor of New York City who has proposed a new budget plan that includes either a property tax hike or a tax on the wealthy.

Got photos? Submit your photos here. ›

What they’re saying

“We must find a balanced approach that supports renters, the homeless, and the city's fiscal health.”

— Zohran Mamdani, Mayor of New York City (ny1.com)

What’s next

The City Council will review and debate Mamdani's budget proposal in the coming weeks before a final vote.

The takeaway

Mamdani's budget plan represents a high-stakes test of his progressive agenda, as he tries to address the city's affordable housing and homelessness challenges while also maintaining fiscal responsibility.