NYC’s Mamdani Scraps Property Tax Hike, Relies on Second-Home Tax to Close City Budget Gap

The mayor’s $124.7 billion budget proposal avoids a property tax hike after the state pledged support of $8 billion over two fiscal years.

New York City Mayor Zohran Mamdani speaks about the fiscal year 2027 budget in New York City on May 12, 2026. Timothy A. Clary/AFP via Getty Images

New York City Mayor Zohran Mamdani has secured a new state aid package he said will allow the city to close its projected $5.4 billion budget gap.

Mamdani, who has spent the past three months pressing Albany for more aid while warning that the city may otherwise need to raise property taxes, on Tuesday unveiled a $124.7 billion budget proposal for fiscal year 2027. The proposal does not include the property tax hike, and the mayor’s office said the plan also avoids cuts to core city services for those most in need.