Mayor Zohran Mamdani is threatening to raise New Yorkers’ property taxes if Gov. Kathy Hochul doesn’t approve a tax hike on the wealthy, NY1 has learned.

“Raising property taxes would be no one’s preferred option, partly because the system is so flawed, riddled with inequality,” City Comptroller Mark Levine, a Democrat, told NY1 in an interview after exiting a closed-door briefing Tuesday with Mamdani and his budget aides.

What You Need To Know

Mayor Zohran Mamdani is threatening to raise New Yorkers’ property taxes if Gov. Kathy Hochul doesn’t approve a tax hike on the wealthy, NY1 has learned

One of the few ways a mayor can raise money at the city level is change the property tax rate — an undertaking not seen since former Mayor Michael Bloomberg was in office

Mamdani said the city’s two-year, projected budget gap now stands at $5.4 billion — a shaved down figure after previously estimating that the city’s overall deficit was roughly $12 billion — an amount he compared to “the Great Recession”

“It’s essentially a regressive tax as it’s currently structured, hitting homeowners and communities of color much more than it hits homeowners in wealthier areas. So, this should not be anyone’s choice of how we solve this, nor, by the way, should drawing down reserves,” he added.

One of the few ways a mayor can raise money at the city level is change the property tax rate — an undertaking not seen since former Mayor Michael Bloomberg was in office.

While it’s unclear what the new property tax increase would be, Levine said Mamdani also discussed an order to cut spending at agencies.

Mamdani said the city’s two-year, projected budget gap now stands at $5.4 billion — a shaved down figure after previously estimating that the city’s overall deficit was roughly $12 billion — an amount he compared to “the Great Recession.”

Today, I’m releasing the City’s preliminary budget. After years of fiscal mismanagement, we’re staring at a $5.4 billion budget gap — and two paths.

One: Albany can raise taxes on the ultra-wealthy and the most profitable corporations and address the fiscal imbalance between…

— Mayor Zohran Kwame Mamdani (@NYCMayor) February 17, 2026

“Albany can raise taxes on the ultra-wealthy and the most profitable corporations and address the fiscal imbalance between our city and state,” said Mamdani in a social media post describing how he plans to present his preliminary budget.

“[A] last resort: balance the budget on the backs of working people using the only tools at the City’s disposal. The first path matches a structural crisis with a sustainable and fair solution. I know where I stand,” he said. 

The pitch comes just one day after Hochul said she will give City Hall an extra $1.5 billion in state funding — a deal that still needs to be approved by the state legislature. 

The governor appeared to downplay Mamdani’s ask at a separate press conference in Manhattan Tuesday. 

“[The city] is required by law to announce where it is today, but it’s not resolved until there’s a lot of negotiation with the City Council and a review with his budget team of what their real expenses are and what they need to be, and that’s not due until July, so there’s a lot of time to work this out,” she said. 

“I’m not certain there’s a property tax increase,” she added when asked about Mamdani’s plan.

“That’s between the City Council and the mayor, they’re gonna look at that,” she added. 

Democratic City Council Speaker Julie Menin was also briefed by Mamdani ahead of the public budget presentation, but did not respond to an immediate request for comment. 

The city budget is not officially due until July 1.

Last year’s budget, passed by the City Council and signed into law by former Mayor Eric Adams, stood at $116 billion.