Zohran Mamdani Warns of Major Tax Increase in New York

• NYC budget deficit
• Proposed New York tax increase
• Clash with Hochul

Zohran Mamdani warned Tuesday that property taxes in New York City could increase.

The measure, he said, would be necessary to cover the city’s budget deficit.

The announcement came during the presentation of his preliminary budget for fiscal year 2027, totaling $127 billion.

According to Mamdani, the city faces a projected $5.4 billion deficit over the next two years.

The warning has intensified debate over the proposed New York tax increase.

Mamdani Proposes Raising Taxes on Millionaires and Corporations in New York

🇺🇸 BREAKING: Mamdani has declared that property taxes will require a 9.5% hike across NYC to make up for Gov. Kathy Hochul’s refusal to hike taxes on NY’s wealthy.

SOCIALISM HAS MADE ITS WAY TO NEW YORK pic.twitter.com/lxEvOJVa64

— And We Know©🇺🇸 (@andweknow) February 17, 2026

Mamdani outlined two paths to close the budget gap.

“There are two ways to close the budget gap. The first is the most sustainable and fair: raising taxes on the wealthiest and on corporations, and correcting the imbalance between what the city provides to the state and what we receive in return,” he explained during a press conference.

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The mayor is advocating for an increase in the personal income tax.

The measure would target New Yorkers earning more than $1 million annually.

He also proposes raising taxes on the most profitable corporations.

If that alternative fails, the city would take another route.

New York City “will be forced” to increase property taxes and draw from its reserves.

Mamdani warned that such a move “will weaken our long-term tax base and shift the responsibility of resolving this crisis onto working- and middle-class New Yorkers.”

The preliminary budget includes a proposed 9.5% increase in property taxes to cover the projected deficit.

A Fiscal Plan That Pits Millionaires and Businesses Against City Hall

Just going to take away your retirements 😂

The warmth of collectivism!

NYC Mayor Zohran Mamdani: “We are forced to raid the rainy day fund, retiree benefit fund, and to increase property taxes…” pic.twitter.com/NOz2lxRx4J

— PNW Conservative (@PNWConservative) February 17, 2026

The proposal includes withdrawing nearly $1 billion from the city’s reserves.

It also contemplates using an additional $229 million from a fund designated for retirees’ health benefits.

This would not be the first time such taxes have been raised.

Former mayors Michael Bloomberg and Bill de Blasio implemented similar increases.

Bloomberg raised taxes following the 2008 financial collapse.

De Blasio did so during the pandemic crisis.

Mamdani argues that his first option — taxing higher-income earners and corporations — is more sustainable.

He insists that fiscal adjustments should focus on top income brackets rather than homeowners.

Reserves, Deficit, and a Decision Before June 30

NYC Mayor Zohran Mamdani plans to raise property taxes to cover $5 billion budget gap.

I’m not surprised 🙄 pic.twitter.com/1f756zneFE

— Primrose (@Primrose771646) February 17, 2026

The proposal has not received unanimous support.

Kathy Hochul, governor of New York, has opposed raising taxes on the wealthy and large corporations.

That policy had been one of Mamdani’s key campaign promises.

The city comptroller, Mark Levine, also expressed criticism.

In a statement, he warned that relying on tax increases and reducing reserves “would have dire consequences.”

Levine emphasized that the city needs greater assistance from Albany.

He said it is necessary to correct the funding imbalance between the city and the state.

The mayor’s proposed budget must be approved before June 30.

The debate over how to close the fiscal gap now rests with state and municipal authorities, as the controversy surrounding Zohran Mamdani’s New York tax increase continues to unfold.