Last week, Mayor Mamdani presented a proposal to New York State lawmakers and Governor Hochul to raise $5.4 billion for a city budget deficit for the fiscal year beginning July 1, 2026. Part of the proposal is to expand the Death Tax, otherwise known as the Estate Tax, to any New Yorker who passes with “more than $750K”. The State estate tax is $ 7 million, raising the top estate tax rate from 16% to 50%. Combined with the federal rate of 40%, New Yorkers will face a rate of 70% at death.
This would be a visceral hit to anyone living in New York! Some of the other tax revenue proposals include:
A 1% tax on home sales over $1million
A property tax surcharge of 1% for a home valued at $5million plus
A city Mansion tax and supplemental tax on residential properties valued at $5million or more
A state surcharge on capital gains income over $500,00 per year
Lift the exemption of sales tax for sales of precious metal bullion and coins over $1,000
In addition, the mayor has been very focused on hiking personal income taxes by 2% for New Yorkers making $ 1 million or more. This couples with his other threats to raise corporate tax rates. With the mass exodus already happening, does anyone really think this makes sense at this rate?
