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New Yorkers already juggling sky-high rents may have a new budget buzzword to keep an eye on: property taxes. Mayor Zohran Mamdani’s preliminary $127 billion spending plan floats a nearly 10-percent property tax increase, but only as a fallback if Albany refuses to approve a tax hike on the city’s wealthiest residents. As to what that actually means for renters, the answer, as usual in New York real estate, is complicated.
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 told the New York Post, 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.
There’s also the reality of New York’s famously complex property tax system. Because buildings fall into different classes, ranging from small homes to large commercial properties, the impact would vary widely depending on the type of housing and ownership structure. The Citizens Budget Commission, a nonpartisan budget group, estimated that a typical small-home owner might see about $700 a year in additional taxes, per Newsweek, but how that translates into rent depends on whether landlords can legally pass those costs along.
Politically, the proposal is shaping up to be a pressure tactic in Mamdani’s push for higher taxes on high earners. But whether Albany bites could determine if the property tax hike ever becomes a reality.
For now, renters should treat the idea as a big “maybe.” Negotiations are just getting started, and in classic New York fashion, the final number—and who actually pays it—may look very different by summer.