NYC's 9.5% Property Tax Warning: Why It Matters Even If You Don't Live There
When city budgets blow a hole, property taxes are often the first place politicians look to fill it. New York is the latest example—and a reminder of what you can do where you live. NYC Mayor Mamdani announced a $5.4B shortfall and said he'll raise property taxes 9.5% if income taxes aren't raised. We don't serve NYC, but the pattern is the same everywhere: when revenue falls short, property tax is the workhorse. Here's why that matters, and what TX and CA homeowners can do about their own bills.
Key Takeaways:
When city budgets blow a hole, property taxes are often the first place politicians look to fill it. New York is the latest example—and a reminder of what you can do where you live.
In February 2026, Reason reported that New York City Mayor Zohran Mamdani had announced a $5.4 billion budget shortfall over the next two years. The city charter requires a balanced budget. So Mamdani laid out the trade-off: if the state or city doesn't raise income taxes to close the gap, he'll raise property taxes by 9.5% on more than 3 million residential units and 100,000 commercial buildings.
We don't serve NYC—TaxDrop works with homeowners in Texas and California. But the story is the same everywhere: when revenue falls short, property tax is the workhorse. Here's why that matters, and what you can do about your own bill.
What's Going On in New York
The numbers: NYC's comptroller had already flagged huge budget gaps. Mamdani has since trimmed the two-year deficit (using reserves, agency savings, and higher-than-expected revenue) and secured $1.5 billion from the state. A ~$5.4 billion hole remains.
The mayor's plan: He's asked Albany to raise income taxes on high earners and corporate taxes. If that doesn't happen, his "last resort" is to raise property taxes 9.5%—on top of rates that are already among the highest in the country (Reason cites effective rates in the ballpark of ~20% for single-family, ~12% for apartments, ~11% for commercial, depending on tax class).
The takeaway: Whether you agree or disagree with how NYC got here, the pattern is familiar. Budget shortfall → look for more revenue → property tax is the biggest local lever. That's true in New York and in plenty of other cities. We've written before about why "ending" property taxes is so unlikely—because they fund the bulk of local government. The flip side is that when politicians need money, they often turn to that same lever. When property tax rates go up, your bill goes up—even if your assessed value stays the same.
What You Can Do Where You Live
You can't usually vote down a rate hike. What you can do is make sure you're not paying more than you should on the value side.
Property tax rates go up and down with politics and budgets. But over-assessments—paying on a value that's higher than it should be—are something you can challenge every year. In Texas, 80–90% of informal protests result in some reduction. In California, strong evidence and the right deadline matter. The best move is to protest or appeal when your value is wrong, and to do it before the cutoff. Learn more about how often property values are assessed and why mass appraisal leads to common errors.
See if you're over-assessed—it takes under 2 minutes.
The Bottom Line
NYC's possible 9.5% property tax increase is a reminder: when budgets are short, property taxes are often the first place cities look. We don't serve New York, but we help Texas and California homeowners fight over-assessments so they pay less on the value they have today. Even when effective tax rates rise, you can still challenge an incorrect assessed value.
If you're in TX or CA, don't wait for the next headline. Check your assessment and file a protest or appeal if it's too high.
Source: Reason.com — "Mamdani to Increase NYC Property Taxes by 9.5 Percent to Balance Budget If Income Taxes Are Not Raised" (Feb 18, 2026).
TaxDrop helps homeowners in Texas and California lower their property tax bills by protesting or appealing over-assessments. Get your free savings estimate.
Paying Too Much in Property Taxes?
Let our licensed property tax experts assess your tax bill for potential savings. Over 80% of protests get a reduction of more than $1,000 and it takes less than 3 minutes to enroll.
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FAQs
Why is NYC raising property taxes?
NYC Mayor Mamdani announced a $5.4 billion budget shortfall. The city charter requires a balanced budget. He's asked Albany to raise income taxes on high earners; if that doesn't happen, he said he'll raise property taxes 9.5% as a "last resort."
Does this affect me if I don't live in NYC?
TaxDrop serves Texas and California only, not NYC. But the pattern is the same everywhere: when city budgets fall short, property taxes are often the first place politicians look to fill the gap. That's why it's important to make sure you're not paying more than you should on the assessed value side.
What can I do about property tax increases?
You usually can't vote down a rate hike. But you can challenge an over-assessment—paying on a value that's higher than it should be. In Texas, you can protest your appraised value (deadline May 15). In California, you can appeal your assessed value (typically 60 days from your Assessment Notice).
How successful are property tax protests and appeals?
In Texas, 80–90% of informal protests result in some reduction. In California, strong evidence and filing before the deadline matter. The best move is to protest or appeal when your value is wrong, and to do it before the cutoff. Check if you're over-assessed—it takes under 2 minutes.
What's the difference between a rate increase and an over-assessment?
A rate increase is when the tax rate itself goes up (often due to budget needs). An over-assessment is when your property's assessed value is set too high. You can't usually challenge a rate increase, but you can challenge an over-assessment every year through a protest (TX) or appeal (CA).
Ryder Meehan
Ryder Meehan is the Co-Founder of TaxDrop and a Licensed Property Tax Protest Consultant
