Insights and Analysis

New York City Mayor Mamdani proposes property tax hike as part of new budget plan

18 February 2026

New York City Mayor Zohran Mamdani unveiled a preliminary US$127 billion budget for fiscal year 2027 that includes a proposed property tax increase for both residential and commercial properties. The Mamdani administration maintains that their preferred route would be higher taxes on the wealthiest New Yorkers and profitable corporations, but those measures require approval from New York State Governor Kathy Hochul, who has expressed opposition.

Absent those additional levies, the administration argues the property tax increases in the preliminary budget are necessary to close a two-year US$5.4 billion budget gap because property taxes are one of the few revenue tools fully under the City's control. Initial reaction from City Council leaders, including Speaker Julie Menin and Finance Chair Linda Lee, have criticized the proposal stating that property tax hikes should not be considered during the current affordability crisis. As ultimately the Mayor and the City Council must agree on a City budget by June, the Mayor's preliminary budget proposal with the property tax hikes begins the debate with both sides looking to find other ways to reduce spending and close the budget gap.

The Hogan Lovells Tax Certiorari team will continue to monitor policy developments in this space.

Authored by Susan Davidson, Adrian Diaz, and Ross Moskowitz.