Mamdani Announces Plan to Increase Taxes on High Earners in New York City

February 18, 2026

Zohran Mamdani, the Democratic nominee for mayor of New York City, unveiled a detailed tax proposal today that would raise income taxes on the city's wealthiest residents to fund expanded public services, affordable housing, and climate resilience programs. The plan, released during a campaign event in Brooklyn, calls for a new city income tax bracket of 13.5 percent on incomes above $1 million, up from the current top rate of 10.9 percent, and a 12.5 percent rate on incomes between $500,000 and $1 million.

Mamdani, a 34-year-old democratic socialist and New York State Assembly member, framed the tax increase as a direct response to rising inequality, homelessness, and underfunded public transit and schools. “New York City is the richest city in the world, yet we have children sleeping on subway trains and seniors choosing between rent and medicine,” Mamdani said. “It is time for the ultra-wealthy to pay their fair share so we can build a city that works for everyone.”

The proposal would generate an estimated $4.2 billion annually in new revenue, according to campaign economists. Funds would be allocated as follows:

• $1.8 billion for construction of 100,000 permanently affordable housing units over the next decade
• $1.1 billion to expand free child care, after-school programs, and universal pre-K
• $800 million for subway and bus improvements, including fare-free bus pilot programs
• $500 million for climate adaptation projects, including heatwave cooling centers and flood protection in vulnerable neighborhoods

Mamdani's plan also includes a 2 percent wealth tax on net assets above $50 million, projected to raise an additional $1.5 billion per year, and a higher corporate tax rate on large financial institutions operating in the city.

Reactions and Political Context

The proposal drew immediate praise from progressive groups, labor unions, and housing advocates, who called it “bold and necessary.” The Working Families Party and New York Working Families endorsed the plan within hours of its release.

Business leaders and centrist Democrats reacted sharply. The Partnership for New York City, representing major corporations, warned that the tax hikes could accelerate the exodus of high earners and businesses already underway since the pandemic. “New York cannot tax its way to prosperity,” the group said in a statement. Former Governor Andrew Cuomo and several moderate Democrats expressed concern that the plan would damage the city's competitiveness.

Republican mayoral candidate Curtis Sliwa called the proposal “socialist overreach” and predicted it would drive even more taxpayers out of the city. Incumbent Mayor Eric Adams, who has not yet announced whether he will seek re-election, has remained silent on the plan but has previously opposed significant tax increases on high earners.

Mamdani currently leads most public polls for the Democratic primary, buoyed by strong support among young voters, renters, and progressive neighborhoods in Brooklyn, Queens, and the Bronx. The primary is scheduled for June 2026.

The tax proposal is expected to dominate the mayoral campaign in the coming months, with debates centering on whether New York can afford the revenue measures or whether higher taxes would accelerate out-migration of wealth and businesses. Mamdani’s campaign insists the plan targets only the top 1 percent and would make New York more livable for working families.

Full policy details and economic projections are available on the Mamdani for Mayor campaign website.