Mamdani Threatens 9.5% Property Tax Hike to Close $5.4B Gap
Mayor Zohran Mamdani warned a 9.5% property tax increase is a last resort to cover a $5.4 billion budget shortfall while urging Albany to raise taxes on the ultra-wealthy and corporations.
Overview
Mayor Zohran Mamdani warned he could raise property taxes by 9.5% to help close a $5.4 billion city budget shortfall if Albany does not raise taxes on the wealthy and corporations.
Mamdani released a preliminary fiscal year 2027 budget that frames the property tax proposal as a "last resort" and asks Gov. Kathy Hochul and state lawmakers to act.
Queens homeowners Vivian Campbell, James Johnson and Pierry Benjamin told local media they feel betrayed and oppose the property tax threat, and critics on social media have attacked Mamdani's approach.
About 3 million homes would be affected and Mamdani said the median household income is $122,000; a cited CUNY/New School report estimated the city contributes 54.5% of state tax revenue and receives 40.5% back.
State lawmakers must decide whether to include Mamdani's tax proposals in their One House budgets, and the mayor warned the city could tap reserves or make "painful decisions" if Albany does not act.
Analysis
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Sources (4)
FAQ
The budget gap is $5.4 billion for the fiscal year 2027 preliminary budget.
Raising personal income taxes by two percentage points on individuals earning over $1 million annually and increasing corporate taxes.
It would raise the average property tax rate from 12.28% to 13.45%, impacting about 3 million homes with a median household income of $122,000, and is described as a regressive tax on working and middle-class New Yorkers.
Drawing down reserves, including $980 million from the Rainy Day Reserve Fund in FY 2026 and $229 million from the Retiree Health Benefit Trust in FY 2027.
Queens homeowners feel betrayed and oppose it, calling it negotiation tactics; Comptroller Mark Levine warns it is regressive and unfair due to the broken property tax system.
History
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