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Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Not as a millionaire income-tax increase in the FY2027 executive budget. Mamdani campaigned on a higher New York City income tax for people earning at least $1 million and a higher New York State corporate tax rate. The budget he presented instead relied on a proposed tax on certain expensive second homes, a change to a state tax credit, savings, audits, state aid and other adjustments. Several measures still depend on Albany, and some details and revenue estimates remain unsettled.
What changed between the campaign plan and the FY2027 budget?
The distinction is between campaign proposals and measures included in the mayor’s executive budget. The preliminary budget described higher recurring taxes on wealthy residents and corporations as the preferred way to address the city’s finances, while also modeling a property-tax increase as a fallback if the city could not obtain new revenue authority. The FY2027 executive budget, presented by the Mayor’s Office in 2026 as balanced, did not include the proposed millionaire income-tax surcharge or corporate-rate increase.
The budget debate followed a projected two-year gap of roughly $12 billion. After savings, revised revenue estimates and state support, the Mayor’s Office said the remaining gap was $5.4 billion. Those are budget projections, not a measure of money already collected or a guarantee that the eventual results will match the estimates.
Which taxes and revenue measures are being discussed?
The proposals differ in what they tax, which government can change them, and how firmly their revenue is established. The figures below are projections attributed to the Mayor’s Office or, where noted, its reporting to the Associated Press—not verified final collections.
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| Measure | Tax base and who could pay | Authority and status in the FY2027 executive budget | Revenue estimate and timing | Key uncertainty |
|---|---|---|---|---|
| Campaign income-tax surcharge | Personal income of people earning at least $1 million; campaign proposal was a 2-point New York City income-tax surcharge. | Requires state legislation; it was not included in the FY2027 executive budget. | No revenue estimate for this measure is stated in the cited budget materials. | Would require Albany to act; the final design and yield are not established here. |
| Campaign corporate-tax increase | Corporate profits; proposal would raise New York State’s top corporate rate from 7.25% to 11.5%. | Requires state action; it was not included in the FY2027 executive budget. | No revenue estimate for this measure is stated in the cited budget materials. | Final legislation, business responses and net revenue are unknown. |
| Pied-à-terre tax | New York City secondary homes valued above $5 million owned by people who live elsewhere. | Proposed for the executive-budget plan; final design details were still subject to negotiation in the Associated Press’s 2026 report. | The Mayor’s Office and Associated Press reported an estimate of at least $500 million annually. | Eligibility, implementation and the final yield depend on the measure’s design and response by owners. |
| Reduction in the PTET credit | Would reduce the pass-through entity tax credit from 100% to 75%, affecting taxpayers who receive that credit. The administration said more than 95% of credits go to taxpayers earning over $1 million and more than 80% to those earning over $5 million. | The Mayor’s Office and City Council asked the state to make the change; the city cannot alter the state credit on its own. | The Mayor’s Office estimated nearly $1 billion from the change; the cited materials do not specify a recurring annual yield. | The state would need to act, and the estimate is not a final collection figure. |
| Property-tax increase fallback | Property taxes on city property-tax payers. | The preliminary budget modeled it as a fallback if the city lacked new revenue authority; it was not the central tax measure described in the FY2027 executive budget. | The Mayor’s Office’s preliminary-budget assumption was a 9.5% rate increase generating $3.7 billion in FY2027. | This was a budget assumption, not proof that the increase was enacted or collected. |
Did Mamdani actually raise taxes on millionaires?
The FY2027 executive budget did not enact the campaign’s proposed city income-tax surcharge on people earning at least $1 million. The Mayor’s Office did propose reducing the PTET credit, and its own distribution figures indicate that most of the credit currently goes to taxpayers above that income level. But a smaller credit is not the same policy as increasing the city income-tax rate: it changes a tax benefit, and the state would have to approve the requested change.
Mamdani defended the pied-à-terre proposal as a tax on wealthy people who own expensive New York City second homes but live elsewhere. In a May 2026 statement, he said, “I don’t know how else to describe a tax on secondary homes of non-resident New Yorkers worth more than $5 million than as a tax on the rich.” That describes the intended target; it does not mean the campaign’s millionaire income-tax proposal became law.
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What is a pied-à-terre tax?
A pied-à-terre is a secondary home—such as an apartment kept for occasional use—instead of the owner’s primary residence. The proposal discussed for New York City targets secondary homes worth more than $5 million when owned by people who live elsewhere. It is based on ownership and property value, rather than the owner’s annual income.
The Mayor’s Office and Associated Press put the expected yield at at least $500 million a year. That is an estimate for the proposed measure, not a settled amount of revenue. The Associated Press reported that details were still subject to negotiation, so the threshold alone does not establish how residency, valuation, exemptions or administration would be handled in a final version.
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Can the NYC mayor raise the income tax or corporate tax by himself?
No. A mayor cannot unilaterally impose the proposed personal-income surcharge or change New York State’s corporate-tax rate. Those changes generally require state legislation and the governor’s approval, unless the Legislature overrides a veto. Changes to city corporate taxes or the unincorporated business tax also depend on state enabling law.
The same jurisdictional limit matters for the PTET credit: it is a state tax benefit, so the city’s request to reduce it needs state action. The pied-à-terre proposal is a different kind of measure, aimed at qualifying city property; its proposed revenue should not be confused with authority to change the state income or corporate-tax rates.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Could the corporate-tax plan make companies leave New York?
That is a possible behavioral concern, not an established outcome. Critics warn that higher taxes could prompt businesses or wealthy residents to relocate, change activity or seek ways to reduce their tax liability. But the available record does not provide a completed independent estimate of the campaign package’s final net revenue after migration, avoidance, enforcement and legislative changes, nor an ex-post study showing how much revenue a particular tax change ultimately loses to departures.
Accordingly, the proposed rate change cannot be described as certain either to drive companies away or to raise its projected amount regardless of business response. Its effect would depend on the final law and how taxpayers respond; the campaign proposal itself was not part of the FY2027 executive budget.
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How much money will the tax plan raise?
There is no established total for the campaign package’s eventual net revenue. The most concrete amounts are separate budget estimates for individual measures, with different status and timing: the pied-à-terre proposal has an annual estimate, the PTET-credit change has an estimate without a stated annual recurrence in the cited materials, and the property-tax figure was a preliminary-budget fallback. The campaign income-tax and corporate-tax proposals do not have revenue estimates stated in the cited budget materials.
The Mayor’s Office presented a $124.7 billion FY2027 executive budget as balanced. A balanced budget is a spending-and-revenue plan; it does not by itself show that every proposed measure has been enacted, that estimated revenue has already arrived, or that the city’s longer-term gap has been permanently closed. The final result depends in part on state decisions and implementation.
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