What is being proposed with the NYC property tax increase?

City leaders are debating a 9.5% rise in property tax rates to help close a US$5.4 billion budget gap. Mayor Zohran Mamdani prefers a two percentage-point income tax increase on millionaires instead. The final mix, if any, depends on council negotiations and voter pressure in key boroughs like Queens.

Why does the NYC property tax increase matter to Australians?

Many Australian super funds and A-REITs hold US real estate. A broad tax hike would lift operating expenses on New York assets, squeeze net operating income, and could widen cap rates. That can affect distributions, valuations, and refinancing terms that feed into Australian portfolio returns.

What is the Mamdani millionaire tax?

It is a proposed two percentage-point rise in income tax for high earners in New York City. Supporters say it raises revenue without directly lifting property carrying costs. If adopted over a property tax hike, landlords could see less immediate expense pressure, but demand and migration effects still matter.

What should investors track next?

Monitor council statements on whether the property-tax option is off the table, fiscal updates quantifying the New York budget gap, and any implementation timelines. Also track landlord guidance on rent pass-through, refinancing spreads on US debt, and vacancy trends across Queens and Manhattan submarkets.

Law and Government

NYC Property Tax Hike Plan Faces Backlash in Queens — February 21

ByDanny Kontos February 20, 2026

The NYC property tax increase proposed at 9.5% has triggered a sharp response in Queens and raised questions for Australian investors with US real estate exposure. Mayor Zohran Mamdani pitched the hike to help close a US$5.4 billion New York budget gap, while preferring a two percentage-point rise on millionaires instead. The policy choice will steer cash flows, rents, and valuations across New York assets. We outline the proposal, the politics, and why this matters for A-REITs and super funds that hold US property or debt.