New York Mayor Zohran Mamdani will on Tuesday release his first preliminary budget for NYC, which may see an increase in property taxes.
If the NYC property taxes are increased, it will be for the first time in more than two decades.
The NYC Mayor stated that after years of fiscal mismanagement, they are staring at a $5.4 billion budget gap — and have two paths.
Mamdani, a Democrat, has faced continued resistance from Gov. Kathy Hochul to raise taxes on wealthy individuals and corporations.
According to The City, Hochul told reporters that she did not “think a property tax increase is necessary.”
New York City Comptroller Mark Levine said, "He's put a pretty extreme option on the table, which is a combination of raising property taxes and taking money from reserves and relying on some pretty aggressive revenue projections to boot."
In a post on X, Mamdani said, "One: Albany can raise taxes on the ultra-wealthy and the most profitable corporations and address the fiscal imbalance between our city and state. The other, a last resort: balance the budget on the backs of working people using the only tools at the City's disposal."
The NYC Mayor explained that the first path matches a structural crisis with a sustainable and fair solution.
"I know where I stand. New Yorkers voted for bold change and competent leadership. We will deliver both, and we look forward to partnering with Albany to protect working New Yorkers."
Mamdani's post also received sharp reactions from X users.
"What is the bracket for someone to be labeled as Super Wealthy," asked one user.
"The projected deficit for the next fiscal year is $10.4 billion. Good luck with the “tax the rich” mantra—the numbers don't work. And that's before all his free stuff," said another user.
One user stated that even though Mamdani is presenting two paths, legally, he only controls one. "New York City cannot raise income taxes or corporate taxes without the State Legislature and Governor Hochul's approval."
"Tax the billionaires, not the broke," another user stated.
NY Post reported that Mamdani is set to unveil a record $127 billion budget.
Sources told the Post that the budget — up around $11 billion from the current year — will also call for the city to drain its $10 billion rainy day fund down to next to nothing.
Last week, Mamdani called for a two percent tax increase for New Yorkers making over a million dollars a year, along with a hike in the state's corporate tax rate.
"Along with raising the corporate tax—I'm asking for a 2% personal income tax increase on the most affluent New Yorkers. That 2% tax would resolve nearly half of our budget deficit. I will continue to advocate for these policies not only because they offer the most direct route out of this budget crisis, but because they will transform what is possible in our State."
Speaking to CNBC in January 2026, Mamdani vowed that his administration will be up front with New Yorkers about budget issues.
"I have to show that the city government is not just serious about public goods, but also public excellence and public efficiency, and so we have to make sure every dollar that's being spent is actually being spent in a worthwhile way,” he said.
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