NY state lawmakers propose boosting taxes on the rich, challenging Gov. Kathy Hochul and aligning with Mayor Zohran Mamdani

Josephine Stratman, New York Daily News on Mar 10, 2026

Published in News & Features

By clicking submit, I authorize Arcamax and its affiliates to: (1) use, sell, and share my information for marketing purposes, including cross-context behavioral advertising, as described in our Privacy Policy , (2) add to information that I provide with other information like interests inferred from web page views, or data lawfully obtained from data brokers, such as past purchase or location data, or publicly available data, (3) contact me or enable others to contact me by email or other means with offers for different types of goods and services, and (4) retain my information while I am engaging with marketing messages that I receive and for a reasonable amount of time thereafter. I understand I can opt out at any time through an email that I receive, or by clicking here

NEW YORK — A budget battle is unfolding in Albany as state lawmakers in their budget proposals unveiled a push for tax hikes on both wealthy individuals and corporations to supply New York City with more money, aligning with Mayor Zohran Mamdani but posing a sharp challenge to Gov. Kathy Hochul.

The proposals, known as “one-house” resolutions, have typically in years past also included raising personal income taxes, which have been shut down by past governors. However, this year Mayor Mamdani is bringing the political clout of the mayor’s office into the mix. The mayor is looking to fulfill his ambitious affordability agenda and close what he’s said is a $5.4 billion budget gap.

The budget resolutions kick off the negotiation process that’ll play out over the next month between Hochul, Senate Majority Leader Andrea Stewart-Cousins and Assembly speaker Carl Heastie. Hochul has said personal income tax hikes are a nonstarter.

The proposals, released late Monday, kick about $5 billion to New York City – enough to close that gap.

Legislators proposed raising the tax rate for business and residents with incomes over more than $5 million. That’s scaled down from the more-dramatic hike Mamdani has proposed: 2% increase on city dwellers making more than $1 million a year.

Mamdani said he was thankful the state lawmakers included the tax hikes in their budget proposals.

“The legislature and I agree: we cannot bridge this budget deficit on the backs of working-class New Yorkers. I’m grateful that the Assembly and Senate One-House Budgets recognize the scale of the fiscal crisis facing New York City,” he said in a statement.

Hochul faces more pressure this year to raise taxes on the wealthy, though it’s still an uphill climb for state legislators and Mamdani, who has made raising taxes a cornerstone issue.

A recent Siena University poll found that 54% of voters statewide and 62% in New York City supported the push to raise taxes. Independent group have also upped the pressure, with a “Tax the Rich” rally organized by allies of the mayor drawing over a thousand people to Albany last month. On Tuesday, PAC DREAM for NYC unveiled a billboard in Albany pushing for the tax hike.

If the state doesn’t give the city more money, the mayor’s threatened to raise the property tax rate by nearly 10%.

Hochul released her roughly $260 billion preliminary executive budget in January. The state budget is due April 1, although lawmakers regularly blow past that deadline.

Also on Tuesday, the New York City Council released an updated budget forecast.

The Council said that their analysis found $1.7 billion in additional savings, making it not necessary to draw down from the city’s reserves in order to balance the budget in this fiscal year, which runs through June 30.

“The Rainy Day Fund was created to help protect New Yorkers during a true fiscal emergency, and has never been tapped,” Speaker Menin said in a statement. “Our analysis suggests we are not in such an emergency position today.”

Money could be saved on debt service adjustments, axing “long-standing” vacant jobs and unrecognized interest earnings, according to a release, though details about those possible savings were not immediately available.