New York City Mayor Zohran Mamdani has rolled out a staggering $127 billion preliminary budget for fiscal year 2027, the largest in the city’s history, and paired it with a sharp warning to Albany. If state leaders—namely Democratic Governor Kathy Hochul—do not approve a new tax hike on millionaires, Mamdani says homeowners and businesses should brace for a sweeping property tax increase approaching 10%.
The plan represents an $11 billion jump from the current $115.9 billion budget for fiscal year 2026, a nearly 9.6% surge in spending at a time when the city is already staring down a projected $5.4 billion budget shortfall. Yet despite repeated warnings about looming deficits, the mayor’s proposal contains few meaningful spending reductions, relying instead on new taxes and reserve funds to close the gap.
At the center of Mamdani’s strategy is a push for Albany to authorize a 2% income tax increase on individuals earning more than $1 million annually. Because the city cannot impose that tax on its own, the mayor is attempting to pressure state lawmakers to act. If they refuse, Mamdani says he will pursue what he described as a fallback option—an across-the-board property tax hike.
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