NYC Property Tax Hike: Zohran Mamdani, a Democratic assemblymember from Queens, has warned that New Yorkers could face a major property tax increase if state lawmakers do not pass his plan to “tax the rich.” He says the city’s $127 billion budget needs new revenue, and without higher taxes on the wealthiest residents, property owners might have to pay more. Mamdani called it a “harmful property tax increase” that could hit homeowners across all five boroughs.
He argues that his wealth tax plan would protect working- and middle-class residents from shouldering the city’s budget problems. “Without structural reform, the burden will inevitably fall on everyday property owners,” he said. Mamdani has suggested a “9.5% property tax increase” if his proposal to tax the richest New Yorkers does not pass.
Who could be Affected the most?
A 9.5% property tax increase would not affect everyone the same.
- People who own homes in faster growing neighborhoods like Brooklyn and Queens might see bigger annual bills.
- Families in Staten Island, where most people own houses, could feel it the most.
- People who live in co-ops or condos would also be affected because higher building taxes usually make maintenance fees go up.
- Renters mat feel the affect of it too even if it’s indirectly, because landlords could raise rents to pay for the extra taxes.
- Small business owners can also struggle especially those ones that are still recovering from pandemic losses and higher prices.
Debate over Wealth Tax Vs Property Tax
Supporters of Mamdani’s plan say taxing the richest people is fair. They point out that wealthy residents have seen huge increases in their assets over the past ten years. Using that money, they argue, could keep the city budget stable without raising costs for homeowners.
Opponents say high earners already pay a lot in state and city taxes. They worry that more taxes could make rich people leave the city, shrinking the tax base over time.
“It is a false choice,” said Andrew Rein, head of the fiscally moderate Citizens Budget Commission, “because it left out the most important option, which is to reduce spending that doesn’t improve people’s lives.”
Another veteran budget watcher took a more cynical view. “It’s a way to freak everybody out and make it look like the income tax increase is reasonable compared to this,” said Carol Kellermann, the previous Citizens Budget Commission president.
“Mayor Mamdani promised that he would fight for property tax reform to help overtaxed apartment buildings when he was on the campaign trail,” said Kenny Burgos, New York Apartment Association CEO. “Now he is proposing an across the board tax hike that will drive thousands of rent-stabilized buildings into further bankruptcy.”
