The debate over taxes and how the largest city in the U.S. should be financed has entered a heated new phase. At the center of the discussion is the mayor's ambitious proposal for a record-breaking budget, which aims to close a billion-dollar gap without cutting public services — but at the likely cost of raising taxes.
Zohran Mamdani unveils record $127 billion budget — bolstered by a proposed NYC property tax hike
Mayor Zohran Mamdani delivered a surprising ultimatum to New York Governor Kathy Hochul as he presented his $127 billion budget proposal: either raise taxes on the wealthiest, or he will raise property taxes by nearly 10%.
The preliminary spending plan for fiscal year 2027 projects an increase of $11 billion compared to 2026 and includes very few cuts. The budget would take New York City's spending level to an all-time high.
Mamdani, who identifies as a democratic socialist, declared that he would be "forced" to touch the pockets of ordinary citizens if Hochul and lawmakers in Albany do not support his initiative to increase income taxes for the wealthiest classes.
He described the 9.5% property tax increase — which will affect about 3 million residential units and 100,000 commercial properties — as a "last resort" to cover the projected $5.4 billion budget gap.
“I don’t want to raise property taxes,” Mamdani said during the budget presentation. “When we face this crisis, the question is: who should pay these taxes? I believe the wealthiest New Yorkers and the most profitable corporations should pay them. I believe they can afford to pay a little more,” he said.
