What is the Mamdani property tax hike?

It is a proposed 9.5% city property tax increase set as a fallback if Albany rejects higher taxes on the wealthy. The aim is to help close the NYC budget deficit. It remains a proposal, facing City Council pushback and active negotiations.

When could the property tax increase take effect?

If adopted in the city budget by June 5 and triggered by Albany’s decision, the increase could take effect on July 1. The late timing means lease talks, refinancing plans, and cash-flow guidance may adjust quickly near quarter-end.

How could this affect rents for tenants?

Commercial leases often include tax escalations that can pass through increases. Market-rate residential rents may also rise at renewal if demand supports it. Regulated units have capped increases, which moderates direct effects. Actual rent impact depends on local demand, supply, and lease terms.

What should property owners model right now?

Run two scenarios: no broad hike if Albany approves higher taxes on the wealthy, and a 9.5% increase starting July 1. Update NOI, coverage ratios, and refinance proceeds. Review lease pass-throughs, adjust contingencies, and engage lenders early if covenants look tight.

Law and Government

NYC Budget February 18: Mamdani’s 9.5% Property Tax Hike Threat

ByDanny Kontos February 19, 2026February 19, 2026

The Mamdani property tax hike proposes a 9.5% citywide increase if Albany rejects higher taxes on the wealthy. It is framed as a fallback to close the NYC budget deficit, drawing City Council pushback. If enacted by June 5, it could take effect July 1. Investors should assess pass-through rent impact for tenants, building cash flows, valuations, and municipal budget risk. We outline timelines, political odds, and how this proposal could affect real estate income and financing terms across New York City.