Zohran Mamdani won the New York mayoral election. Photo source: Cristina Matuozzi / ddp USA / Profimedia
New York City Mayor Zohran Mamdani on Wednesday called for a two-percentage-point tax increase for residents earning more than $1 million a year, as well as an increase in the state corporate tax rate, proposals he has supported since the election campaign, reports Reuters.
During New York State Senate hearings on the 2026 budget, Mamdani, a Democrat, said the city's budget deficit was reduced from $12 billion to $7 billion by “taking a firm approach to savings without compromising public services, updating revenue and bonus estimates and using in-year reserves.”
Despite reducing the budget deficit, Mamdani said New York is “on the edge of the precipice.”
“I think the richest and most profitable companies should contribute a little more so that everyone can live with dignity,” said Mamdani, who is due to present the preliminary draft of the city's budget on Tuesday.
“That's why, in addition to the corporate tax increase, I'm calling for a 2 percent income tax increase for the wealthiest New Yorkers.”
Mamdani said a two percent increase would cover almost half of the city's budget deficit.
On the campaign trail, he supported raising the New York state corporate tax rate from 7.25 percent to 11.5 percent.
New York Gov. Kathy Hochul, a Democrat, would have to approve any tax hike Mamdani proposes.
A spokesman for Hochul did not immediately respond to a request for comment.
The governor, who presented her budget last month, reiterated her opposition to any tax increase in the state.
“We can make transformative investments in our future. Without raising taxes. Without burdening the next generation with mountains of debt,” Hochul said last month.
