Mayor Zohran Mamdani has a new estate tax proposal that critics say could affect middle-class New Yorkers. According to a memo circulated by City Hall, the Democratic mayor wants to bring the estate tax exemption threshold from $7 million to $750,000, a move critics say would affect the middle class. New York is one of the very few states which imposes a 16% tax on estates worth more than $7 million
However, Mamdani wants to change that. His “Tax Revenue Raising Proposals” is a set of proposed tax increases, which he says could help close the $5.4 billion city budget gap. In a proposal submitted to Gov. Kathy Hochul, the Mayor wants to hike the estate tax rate to 50% from the current 16%.
OUTRAGEOUS: New York City’s Socialist Mayor Zohran Mamdani is pushing an EXTREME proposal to slash the state’s estate tax exemption threshold from over $7 million down to a measly $750,000—a staggering drop of nearly 90%.
Harris Faulkner: “He also wants to raise the rate of how… pic.twitter.com/MbM1KFapvg
— RedWave Press (@RedWavePress) March 16, 2026
According to the New York Post, there’s a built-in “cliff” in his tax proposal, which means that once the estate value hits $750,000, the 50% rate will apply to all assets.
Critics believe this move would directly hurt the middle class, considering the average home value. According to the Post, in Westchester County, the average home value is about $823,340, while in Nassau County it is $875,000. Even if there are no additional assets, the proposed tax hike could affect homeowners’ ability to pass down property
Mamdani’s political opponents have strongly criticized his proposals. Assemblyman Michael Tannousis told the New York Post, “This is a prime example of how the ‘tax the rich’ movement is actually all about taxing the middle class and those struggling to put food on their tables for their families. What can you buy in New York City for $750,000? Not much at all.”
🚨NYC Mayor socialist Zohran Mamdani has proposed lowering the exemption on the death tax (estate tax) from $7.1 million down to only $750,000.
He would also increase the death tax from 16% to 50%.
No other jurisdiction in the USA confiscates wealth at death from people with… pic.twitter.com/FMEXCxFyVG
— Wall Street Mav (@WallStreetMav) March 13, 2026
Bruce Blakeman, a Republican and political rival of Hochul, noted, “Children will lose half the value of their parents’ home and family businesses will have to be sold off just to pay this cruel tax.” He described it as “the most extreme Death Tax in America.”
Meanwhile, City Council Member Phil Wong stated that if Mamdani gets his way, it would “hit a lot closer to home than people realize.” He added, “With property values where they are today, families could be forced to sell the very homes they hoped to pass on to their children. Government cannot keep piling on taxes that punish middle-class homeowners.”
The Post notes that it is unlikely that Hochul will support the proposal. However, his memo has surely sparked concern among some homeowners in New York.
