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By Suzanne Blake
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Democrats are pushing back against New York City Mayor Zohran Mamdani’s property tax plan.
Mamdani is now looking to pass a $127 billion budget plan that includes significant property tax increases in the city.
Why It Matters
Democratic criticism over Mamdani’s plans signals a shift in the party and could reflect views that Mamdani’s financial plans are too radical for more centrist Democrats in the state.
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The current plan Mamdani is looking to implement would increase property tax rates by roughly 9.5 percent, but some critics say it would disproportionately target lower- and moderate-income homeowners.
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What To Know
Mamdani’s preliminary Fiscal Year 2027 budget seeks to close a $5 billion-plus budget gap and would levy the first property tax increase in more than two decades.
Specifically, rates would surge by 9.5 percent as a last resort. Mamdani has said he would prefer to approve higher taxes on the wealthiest New Yorkers and corporations instead, but the property tax increase would be necessary if that wasn’t possible.
Queens Borough President Donovan Richards said the tax increase would disproportionately target many lower-income homeowners.
“The bottom line is we should not arbitrarily put the city’s budget on the back of everyday New Yorkers,” Richards told reporters this week.
Raising the property taxes would generate roughly $3.6 billion to $3.8 billion yearly beginning in 2027.
While Governor Kathy Hochul and other officials have opposed the property tax hike because of affordability concerns, there hasn’t been a widespread push to raise taxes on the wealthy and corporations instead.
"I'm not supportive of a property tax increase, I don't know that that's necessary," Hochul said.
Mamdani has also called for higher taxes, or roughly a 2 percent tax surcharge on millionaires, but that would require state approval.
What People Are Saying
Queens Borough President Donovan Richards, on X: “As I told Mayor Mamdani this afternoon, a property tax hike upwards of 9.5 percent is a nonstarter. Under no circumstance should we consider balancing our budget on the backs of working-class New Yorkers, especially seniors on fixed incomes and workers who keep our city running.”
New York City Council Speaker Julie Menin, in a statement: “At a time when New Yorkers are already grappling with an affordability crisis, dipping into rainy day reserves and proposing significant property tax increases should not be on the table whatsoever.”
What Happens Next
Mamdani’s proposed property tax hikes are still in the proposal and negotiation phase. Before June 30, negotiations will likely intensify and final numbers will be adjusted.
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