Property Taxes Poised for 9.5% NYC Increase

Property taxes in New York City could rise as Mayor Zohran Mamdani considers a 9.5% hike to close a $5B budget gap. Read on for details.

February 18, 2026

Valerija I.

Mayor Zohran Mamdani has proposed a 9.5% property taxes increase across all property classes.
The hike aims to address a budget gap of around $5B in the upcoming fiscal year.
More than 3M residential and 100,000 commercial units would be affected.
City Council and local advocates are already voicing opposition to the proposal.

Key Takeaways

Budget Pressures Mount

According to Bloomberg, New York City may raise property taxes for the first time in over 20 years. Mayor Zohran Mamdani included the proposal in his preliminary budget plan. He proposed a 9.5% increase to help close a projected $5B budget gap. The hike would affect both residential and commercial properties across the city.

Mamdani introduced the proposal alongside a $127B budget outline. At the same time, he renewed calls for additional state funding. However, state officials have resisted those requests so far. The mayor said the city will raise property taxes and use reserve funds without more aid.

Stakeholder Pushback

City Council leadership and advocacy groups have already come out against property tax increases, arguing that residents and small businesses face an affordability crisis. Opposition leaders urge the city to find alternative savings or revenue sources before burdening property owners. The debate also underscores how the mayor’s broader policy agenda is already reshaping expectations across New York’s commercial real estate sector.

Business advocates warn that higher property taxes could erode the city’s competitiveness as employers consider relocation to lower-tax states. Meanwhile, housing groups have intensified calls for structural property tax reform given the proposal’s broad impact.

Revenue Challenges and Outlook

The city, which collected more than $33B in property taxes in 2025, is somewhat constrained in its ability to raise new revenue. While assessed property values recently increased by 5.6% to $325.8B, the mayor’s ability to fix rates is set during the annual budget process. Any change depends on City Council approval.

State officials, including Governor Kathy Hochul, note that the ultimate decision rests with local lawmakers—and further negotiations on the city’s fiscal strategy will continue. The property taxes issue is now central to budget talks as leaders debate how to resolve New York’s ongoing financial challenges.