"The mayor announced the plan in a preliminary budget proposal on Tuesday, threatening city homeowners with a 9.5% property tax hike should the governor opt not raise income taxes on the ultra wealthy. "The onus for resolving this crisis should not be placed on the backs of working and middle class New Yorkers," said Mamdani, arguing the property tax hike would be the city's "last resort" to address the budget shortfall."
"This is a big ask, as property owners in New York City shoulder a greater tax burden than much of the country. In 2022, property taxes represented more than 27% of homeownership costs citywide, compared with the national average of 22.6%, according to the state comptroller's office. Property taxes are already the city's largest single source of tax revenue, generating $31.8 billion in 2023 and accounting for 44% of total tax collections."
"New York's effective property tax rate of 1.45% is nearly double the national average (0.89%), according to Smart Asset. New York has one of the highest average property tax rates in the country. Only four states levy a higher property tax rate, according to WalletHub. On average, New Yorkers pay $6,582 annually in property taxes, based on the state's median home value of $423,800."
New York City faces a projected $5.4 billion budget shortfall. Mayor Zohran Mamdani is urging the state to raise taxes on the ultra-wealthy, warning that the city will implement a 9.5% property tax increase as a last resort. The proposed hike would affect more than 3 million households and over 100,000 commercial properties, potentially generating $3.7 billion annually. Property taxes already supply $31.8 billion and 44% of city tax revenue. New York's effective property tax rate (1.45%) is nearly double the national average, producing average annual payments of $6,582 statewide.
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