The proposal represents an $11 billion increase over the current $115.9 billion fiscal year 2026 budget, a 9.6% jump that would make it the largest spending plan in city history. Despite warning of a projected $5.4 billion budget gap, the mayor’s proposal contains few significant spending cuts.

Instead, Mamdani is pressing Albany to approve a 2% income tax increase on individuals earning more than $1 million annually. That change requires state authorization. If Hochul and the Legislature refuse, Mamdani said he would be “forced” to pursue what he described as a “second, more harmful path” — a 9.5% property tax increase across the board.

“I do not want to raise property taxes,” Mamdani said while presenting the budget. “When faced with this crisis, the question is who should pay these taxes? I believe that it should be the wealthiest New Yorkers, the most profitable corporations.”

The proposed property tax hike would affect roughly 3 million residential units and 100,000 commercial properties. City officials estimate it would generate approximately $3.7 billion, still short of fully closing the budget gap.