Will Mamdani's property tax plan raise your rent? What to know

"The mayor's proposal would raise the citywide property tax rate to 13.45-percent, up from 12.28-percent, potentially affecting more than 3 million residential units and more than 100,000 commercial buildings. Mamdani has framed the idea as a "last resort" to close a projected $5.4 billion budget gap over the next two years, arguing that without new state-approved taxes on millionaires, the city has limited tools to balance its books."

"Even though the tax is technically aimed at property owners, housing experts warn the ripple effects could reach tenants. Landlord groups say higher property taxes typically translate into higher operating costs-and those costs are often passed along through rent increases when regulations allow. Some industry voices have warned it could function as a "de facto rent increase," as New York Apartment Association CEO Kenny Burgos , especially for market-rate apartments."

"But renters shouldn't assume a rent hike is inevitable just yet. For one thing, the proposal is far from finalized. The City Council must approve any budget changes before the June 30 deadline and several key officials (including Council Speaker Julie Menin and Governor Kathy Hochul) have already voiced skepticism about raising property taxes at all. Hochul has suggested that accounting changes or spending cuts could make the increase unnecessary."

Mayor Zohran Mamdani's preliminary $127 billion plan includes a proposed citywide property tax rate increase to 13.45% from 12.28% as a last-resort measure to close a projected $5.4 billion budget gap over two years. The hike could affect over 3 million residential units and more than 100,000 commercial buildings. Housing experts warn that higher property taxes typically raise landlords' operating costs, which can be passed to tenants through rent increases where regulations permit, particularly in market-rate apartments. The proposal requires City Council approval and faces skepticism from key officials, who suggest accounting changes or spending cuts instead.

Read at Time Out New York