February 24, 2026 New York City is staring down a financial black hole, and Mayor Zohran Mamdani just dropped a bombshell: he’s looking at your property taxes to plug it.

Despite a $1.5 billion lifeline from Albany, the city is still drowning in a $5.4 billion budget gap. While the Mayor claims a massive tax hike is a "last resort," business leaders and fiscal watchdogs are screaming foul, claiming the city doesn't have a revenue problem—it has a spending addiction.

The 10% Threat: Who Gets Hit?

If Mamdani’s "last resort" becomes reality, the fallout will be felt in every corner of the five boroughs. We aren't just talking about skyscrapers; we're talking about the roofs over our heads.

• 3 Million+ single-family homes, co-ops, and condos.

• 100,000+ commercial buildings.

• Market-rate tenants: Landlords warn that a tax hike will be passed directly to renters the second a lease renews.

“How is he going to make everything affordable when he’d raise property taxes almost 10%?” asks Valentina Gojcaj, a multi-family building owner. It’s a question thousands of New Yorkers are starting to ask.

"Raiding the Piggy Bank"

It’s not just taxes. The Mayor’s plan involves dipping into the city’s Rainy Day Fund and Retiree Health Benefits Trust to the tune of $1.2 billion.

Critics like Andrew S. Rein of the Citizens Budget Commission say this is a dangerous gamble, essentially "raiding" funds meant for the next recession or to pay for the healthcare of the city’s retired heroes.

The "Spending Velocity" Problem

While the Mayor points fingers at "underbudgeting" from previous administrations, the numbers tell a different story. Mamdani’s proposed budget sits at a staggering $122 billion—larger than the municipal budgets of Chicago, Los Angeles, and Houston combined.

“New York does not have a revenue problem. It has a spending velocity problem. And this budget accelerates it.” — Jessica Walker, President/CEO of the Manhattan Chamber of Commerce

5 Genius Ways to Save NYC (Without Taxing You)

If the Mayor is looking for a "last resort," experts say he hasn't looked hard enough at the first resorts. Here is how the city could bridge the gap without touching your wallet:

1. The "Air Rights" Goldmine: Andrew Rasiej of Civic Hall suggests the city sell unused "air rights" above libraries, schools, and police stations—potentially generating billions in found money.

2. The Airbnb Pivot: Following Paris’s lead, the city could temporarily lift home-sharing restrictions during the 2026 World Cup to maximize tourist tax revenue.

3. The Efficiency Mandate: By letting "Chief Savings Officers" do their jobs and cutting just 2.5% of waste, the city could save over $1 billion.

4. Consolidating Benefits: Merging union welfare funds could save an easy $200 million.

5. The Wall Street Windfall: Profits are at record highs, already bringing in billions more than projected.

Will the City Council Step In?

The Mayor can’t do this alone. He needs the City Council to sign off, and Speaker Julie Menin has already signaled she isn't interested in a tax hike.

As the "Summer of Opportunity" approaches with the 2026 World Cup, the question remains: Will the city innovate its way out of debt, or will it take the easy way out and send you the bill?