A property tax hike looms as the city’s budget politics play out in Albany
The $600 Question: What a Property Tax Hike Would Mean for New Yorkers
Mayor Zohran Mamdani has made clear that a 9.5 percent increase in property taxes is not his preferred path forward. He has described it consistently as a last resort, a painful option to be avoided if Albany will approve his proposed income tax surcharge on New York State residents earning more than $1 million annually. But if Albany does not act, the math is straightforward: the city faces a $5.4 billion budget shortfall, and the only major tax lever the city controls independently is the property tax. A 9.5 percent increase would generate approximately $3.7 billion, leaving roughly $1.7 billion still to be closed through other means.
How Much Would Homeowners Actually Pay?
New York State homeowners already pay some of the highest property taxes in the nation. The state’s effective property tax rate is approximately 1.45 percent, nearly double the national average of 0.89 percent. The median annual property tax bill in New York State exceeds $6,542, according to data from SmartAsset. A 9.5 percent increase on that median would push the annual bill to approximately $7,160, meaning the typical homeowner would pay just over $600 more per year. The impact would vary significantly by property value and borough. Homeowners in Staten Island, where median home prices are lower than in Manhattan or Brooklyn, would pay smaller dollar amounts but might feel the proportional strain more acutely given lower median incomes.
Renters Are Not Immune
While the property tax is formally levied on property owners, its effects ripple through the rental market. Landlords who face higher property tax bills frequently pass those costs to tenants through rent increases, particularly in units not covered by rent stabilization. In a city already experiencing a severe affordability crisis, an additional cost pressure on landlords, whether small family owners or large institutional players, has the potential to worsen conditions for renters. This dynamic is part of why City Comptroller Mark Levine described the property tax as highly regressive, noting that it disproportionately affects lower-income communities more than wealthier ones.
Political Opposition Is Broad
The resistance to a property tax increase is not limited to fiscal conservatives. City Council Speaker Julie Menin, a more moderate Democrat, has explicitly opposed the idea, describing it as unacceptable during an affordability crisis. Governor Kathy Hochul, while pledging $1.5 billion in state support over two years, has also signaled skepticism about the millionaire’s tax proposal. The council has its own role to play: any property tax increase requires City Council approval, and resistance is already visible before the proposal has even been formally put forward.
Your Rights: Property Tax Appeals
New York City homeowners who believe their property is over-assessed have the right to appeal their tax bill. Despite this, roughly 80 percent of homeowners who believe their assessment is inaccurate have never filed an appeal, often because they did not know the option existed. Property tax appeals are filed with the New York City Tax Commission. The deadline for filing appeals is March 15 for most residential properties. Homeowners who successfully appeal can reduce their assessed value, which directly reduces their tax bill. The NYC Tax Commission handles property tax appeals and provides guidance on the process. The Independent Budget Office provides non-partisan analysis of the city’s fiscal situation and the potential impact of various revenue proposals.
