It is a bit of a "push and pull" situation in Albany right now. While there are several high-profile proposals on the table to increase taxes on the wealthy, Governor Kathy Hochul has historically—and recently—remained resistant to them, preferring to focus on middle-class tax relief.
Here is the breakdown of where things stand as of April 2026:
### 1. The Pro-Tax Proposals (The "Tax the Rich" Side)
New York City Mayor **Zohran Mamdani** and several state legislative leaders have been the primary drivers of these proposals. They are pushing for a variety of "wealth taxes" to plug budget gaps and fund social services. Key items include:
* **Property Surcharges:** A proposed **1% annual surcharge** on residential properties valued at **$5 million** or more.
* **Mansion Tax Increases:** Expansion of the existing "mansion tax" for high-value real estate transactions.
* **Transfer Taxes:** A proposed 1% transfer tax on cash-only real estate deals over $1 million.
* **Income Surcharges:** A 0.5% surcharge on personal income for households making over $5 million.
### 2. Governor Hochul’s Position
Despite the pressure from the Legislature and the Mayor, Governor Hochul has consistently expressed skepticism about new tax hikes on high earners. Her "Affordability Agenda" for 2026 has focused on:
* **Middle-Class Tax Cuts:** Delivering relief to over 8 million New Yorkers with incomes up to $323,000.
* **No "New" Taxes:** While she has been willing to *extend* existing high-earner tax rates that were set to expire, she has generally ruled out creating *new* wealth or property surcharges, fearing they might drive high-net-worth residents out of the state.
* **Senior Exemptions:** She recently signed legislation allowing local governments to increase property tax exemptions for seniors, which shifts the burden slightly but is a tax *cut* for that specific group rather than a broad tax hike on the rich.
### 3. Why the Confusion?
The headlines often conflate what the **Legislature** wants with what the **Governor** has actually signed. In the current budget season (FY 2027), the Senate and Assembly included these "tax the rich" measures in their "one-house" budget proposals. However, these are essentially "wish lists" used for negotiating; they don't become law unless Hochul agrees to them in the final budget.
> **Summary:** As of now, **Governor Hochul has not raised property taxes on the rich.** Those proposals are currently being debated in the state budget process, with the Governor currently standing as a "roadblock" against the more aggressive tax hikes proposed by the Legislature and Ma
yor Mamdani.
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