May 3, 2026
In a Fox Business interview this week, New York Governor Kathy Hochul was asked about new taxes. (1) "Not from me," she replied. But while she's saying no to more taxes, New York City Mayor Zohran Mamdani is shouting to "tax the rich" to fix what he calls "the greatest fiscal crisis we've seen since before the Great Recession." (2)
According to a recent poll by the Siena Research Institute, 54% of city residents surveyed agree with Mamdani that the wealthy earning over $1 million should pay more personal income taxes. Suburban and upstate voters were receptive, at 50% and 48% respectively. (3)
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The consensus is that voters prefer to raise taxes on its millionaires than to raise property taxes on all of its New York City property owners. (3) The mayor campaigned on taxing those earning over $1M a flat 2% tax (4) — city income tax rates sit at 3.875% whether a New Yorker makes $50K or $50 million (5) — but he needs the government to greenlight the hikes.
Mamdani holds the highest favorability rating with New York voters at 47%, with Hochul at 46% and Trump at 35%. It's an election year for the governor.
Taxing second properties above $5M
This month, Governor Hochul proposed a tax on luxury second homes in New York City that are worth over $5 million and not the owner's primary residence. It's referred to as the pied-à-terre surcharge, and Mayor Mamdani is in support.
She stated in an official press release: "I will not consider income taxes on New York City residents nor corporate taxes on New York businesses. This is a targeted surcharge on second homes and investor-owned apartments worth over $5 million — homes that in many cases sit vacant for a large part of the year. We have the inventory. They're part of our skyline, but those people are not part of our city." (6)
The proposal must be approved by the New York State Legislature, but it faces vocal opponents from the property industry. (7)
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Big apple budget issues
Mamdani continues to push his plan to tax the 1% for the 99%. Under this plan, a New Yorker earning $1 million will pay an additional $20,000 in city income tax. (8)
Taxing the 1% would raise $5 billion a year, he outlined in his political promises. As of now, personal income taxes make up 23% of the city's tax breakdown.
According to the Citizens Budget Commission (CBC), New York's share of millionaires fell from 12.7% in 2010 to 8.7% by 2022, while the share grew in California, Texas and Florida. Raising taxes could accelerate this trend, CBC warned. (9)
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Looking back on New York's millionaire exodus during the pandemic years, the Independent Budget Office reported a 10.4% drop in personal income tax revenue in 2020, followed by shortfalls of 8.6% in 2021 and 10.7% in 2022. (10)
During a forum in Albany last month, Governor Hochul said she doesn't have a philosophical problem with raising taxes on the rich, "but [she has] to look at the fact that [New York is] in competition with other states who have less of a tax burden on their corporations and individuals." (11)
If you live in New York, let your voice and vote be heard. While you might not think a tax on the ultra-rich will affect you, it will impact all New Yorkers in some way — whether in access to everyday services or in the future identity of the city.
The same thing goes for wherever you live, not just the Empire State.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Fox Business (1); City & State New York (2); Siena Research Institute (3); Zohran for NYC (4); NYC Comptroller (5); New York State Governor (6); CBS News (7); Google Drive (8); Citizens Budget Commission (9); NYC Independent Budget Office (10); YouTube (11)
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Amanda Smith is an Australian freelance journalist and writer based in the New York City area who reports on culture/society, technology, and health.
