Mamdani Proposes Major Tax Hike on NYC’s Wealthiest to Fund Massive Rent Relief Package
Published Date: 18th Feb, 2026
February 18, 2026
Zohran Mamdani, the leading Democratic candidate for mayor of New York City, unveiled an aggressive tax plan today that would significantly increase taxes on high earners and large property owners to finance a sweeping rent relief and affordable housing program. The proposal, announced at a packed community event in the Bronx, targets renters struggling with record-high housing costs and aims to freeze rents citywide while building tens of thousands of new permanently affordable units.
Mamdani’s plan would create a new city income tax bracket of 13.5% on earnings above $1 million (up from the current top rate of 10.9%) and impose a 12.5% rate on incomes between $500,000 and $1 million. It also includes a 2% annual tax on net wealth exceeding $50 million and raises the corporate tax rate on large financial institutions operating in the five boroughs.
The projected revenue—approximately $5.7 billion per year—would fund:
- A citywide rent freeze for all rent-stabilized and rent-controlled apartments
- Direct monthly rent vouchers for low- and middle-income households not covered by stabilization
- Construction of 120,000 permanently affordable housing units over the next decade
- Expansion of free child care, after-school programs, and universal pre-K
- Fare-free bus service on 20 high-ridership routes and major subway improvements
Mamdani framed the tax increases as a moral and economic necessity. “New York is the richest city on Earth, yet half our renters are spending more than 50% of their income on housing,” he said. “We can no longer ask working families to choose between rent and groceries while billionaires and hedge funds pay effective tax rates lower than teachers and nurses.”
Reactions Split Along Ideological Lines
Progressive organizations, tenant unions, and labor groups quickly endorsed the plan. The Working Families Party, New York Communities for Change, and the Real Rent Reform coalition called it “the boldest renter-first platform in a generation.”
Business leaders and centrist Democrats reacted sharply. The Partnership for New York City warned that the tax hikes “would accelerate the flight of high earners and capital” already underway since the pandemic. Kathryn Wylde, president of the Partnership, stated: “New York cannot tax its way out of affordability problems; we need growth, not punishment.”
Former Governor Andrew Cuomo and several moderate Democratic figures expressed concern that the plan would damage the city’s competitiveness as a global financial center. Incumbent Mayor Eric Adams has not commented directly on the proposal but has repeatedly opposed large tax increases on high earners during his tenure.
Republican mayoral candidate Curtis Sliwa labeled the plan “full-on socialism” and predicted it would drive even more taxpayers and businesses out of the city.
Campaign Context
Mamdani currently leads most public polls for the June 2026 Democratic primary, fueled by strong support among renters, young voters, and progressive strongholds in Brooklyn, Queens, and the Bronx. The tax-and-rent-relief proposal is expected to become a central issue in the campaign, with opponents framing it as economically damaging and supporters arguing it addresses the city’s most urgent crisis.
Mamdani’s campaign released independent economic modeling showing the tax increases would affect only the top 1.1% of earners and would generate sufficient revenue without triggering widespread out-migration. Critics have challenged those projections, citing studies that show high-net-worth individuals are highly mobile in response to tax changes.
The proposal marks one of the most ambitious redistributive platforms in recent New York City mayoral history. Whether it resonates with primary voters or alienates the moderate and business-friendly wings of the Democratic Party will likely shape the race in the months ahead. Full policy details and revenue projections are available on the Mamdani for Mayor campaign website.
Date: 18th Feb, 2026
