What to know about Mamdani’s tax plan Menin says is ‘off the table’
NEW YORK - New York City Mayor Zoran Mamdani says the city may have to raise property taxes by 9.5% to help close a projected $5.4 billion budget gap. But City Council Speaker Julie Menin says the council will not support that approach.
What they're saying:
On Wednesday, Menin said raising property taxes "is not on the table" for the council right now, pushing back on Mamdani’s claim that the city has only two choices: persuade state lawmakers to raise taxes on millionaires and corporations, or increase property taxes locally.
"The governor has made clear that she is not raising taxes," Menin said. "So with that said, we need to focus on saving. We cannot be raising property taxes on the backs of small property owners, on the backs renters, on the backs of small businesses. That will worsen affordability crisis, so that is clearly off the table for us."
Mamdani has described the property tax increase as a last resort if state lawmakers refuse to act. Still, the proposed 9.5% hike has drawn backlash.
Rent Guidelines Board
Traditional tenement buildings are now expensive rental apartments, November 4, 2022 on Orchard Street in the Lower East Side neighborhood of New York City, New York. (Photo by Andrew Lichtenstein/Corbis via Getty Images)
Local perspective:
At the same time, Mamdani moved to appoint six members to the Rent Guidelines Board, giving him majority influence over the panel that sets rent adjustments for the city’s roughly 2 million rent-stabilized tenants.
While he campaigned on delivering a rent freeze, Mamdani emphasized the board’s independence.
"I continue to believe that this city’s more than 2 million rent-stabilized tenants deserve a rent freeze," he said. "We cannot respond to a crisis by simply rotating who suffers from it..The question of raising property taxes is that of last resort."
New York Governor Kathy Hochul has also emphasized that the mayor’s proposal is preliminary and subject to negotiations with the City Council.
What Mamdani’s budget could mean for homeowners and renters
Property owners warned that a tax increase would likely be passed on to tenants.
What is Mamdani's 9.5% property tax?
NEW YORK, NY - JAN 23: The Manhattan skyline and George Washington Bridge, as seen from New Jersey on January 23, 2025, with the Hudson River frozen over. (Photo by Lokman Vural Elibol/Anadolu via Getty Images)
By the numbers:
Under the proposal, the 9.5% property tax increase would affect more than 3 million homes, condos and co-ops, as well as more than 100,000 commercial buildings. The Citizens Budget Commission estimates that a typical homeowner would pay about $700 more per year.
The property tax option drew swift pushback from the City Council, which must approve any increase.
NYC budget deficit
ALBANY, NY - FEBRUARY 11: New York City Mayor Zohran Mamdani and the state's other large city mayors testify before the state Legislature at the Legislative Office Building on Wednesday, Feb.11, 2026 in Albany, N.Y. (Lori Van Buren/Albany Times Union
The backstory:
The city’s projected budget gap has narrowed in recent months. Officials previously estimated the deficit could reach $12 billion late last year before revising it to about $7 billion .
It now stands at $5.4 billion, in part due to additional state funding.
The debate sets up a high-stakes standoff between City Hall and Albany over who should shoulder the burden of closing the shortfall, and whether the threat of higher property taxes will pressure state lawmakers to revisit income tax increases on the wealthy.
Budget negotiations are just beginning. The mayor and City Council must reach a final agreement by July 1.
The Source: This report is based on information from Mayor Mamdani, Speaker Menin and Gov. Hochul.