New York City’s Proposed 9.5% Real Estate Tax Hike Hits A National Nerve

Forbes Business

by Kelly Phillips Erb, Forbes Staff

February 25, 2026

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New York City’s proposed 9.5% real estate tax hike has sparked national interest, as Mayor Zohran Mamdani seeks to address budget constraints by increasing property taxes following state resistance to taxing millionaires. This move highlights the growing tension over rising property taxes and their impact on homeowners nationwide. With home prices up 55% in five years, concerns about escalating assessments and tax bills have surged. Property taxes are a cornerstone of local funding for schools, police, and infrastructure. They account for nearly 27.4% of state and local tax revenue, with local governments relying heavily on them. These taxes vary widely by location due to differing property values and tax rates, making reassessment frequency a critical factor in determining individual bills. The determination of property value involves assessors evaluating market transactions or income data for commercial properties. Tax rates are applied to these assessed values, often expressed in mills or percentages. Reassessment schedules differ; some jurisdictions do it annually, while others wait for ownership changes or new construction. For example, California’s Proposition 13 caps annual increases unless there’s a sale or new development. The surge in home prices has led to higher assessed values and tax bills, despite caps in some states. This appreciation has increased homeowners’ equity but also strained budgets, as seen with

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Originally published on Forbes Business on 2/25/2026