New York City's mayor seeks higher taxes on millionaires and corporations to close a USD 7 billion budget gap, but faces opposition from Governor Kathy Hochul, who has pledged not to raise taxes in the state.
New York City Mayor Zohran Mamdani proposed raising taxes on high earners and corporations on Wednesday, 12 February 2026, during testimony at the State Senate’s budget hearing.
The Democratic mayor reported that the city has narrowed its budget shortfall from USD 12 billion to USD 7 billion through aggressive cost-saving measures, updated revenue projections, and the use of reserves—all while maintaining city services. However, Mamdani warned that New York remains financially vulnerable.
Mamdani is requesting a 2% increase in the personal income tax for New Yorkers earning over $1 million annually, which he says would eliminate nearly half of the remaining deficit. He also wants to raise the corporate tax rate from 7.25% to 11.5%.
Any tax increases require approval from NYC Governor Kathy Hochul, who has consistently opposed raising taxes. Her office has not commented on Mamdani’s proposal.
