New York City Mayor Zohran Mamdani, a self-described "democratic socialist" who took office earlier this year, has proposed raising the state's top estate tax rate from 16% to 50%. He also suggested slashing the exemption threshold by nearly 90%, from $7 million to $750,000.
Bloomberg reported on the 13th (local time) that Mayor Mamdani recently submitted the proposal to raise the top estate tax rate from 16% to 50% to New York State legislators. New York is one of about a dozen states that levy estate taxes separately from the federal estate tax. If enacted as Mamdani proposes, New York's estate tax exemption would become the lowest in the nation.
However, Mamdani's proposal was not included in the budget recommendations recently approved by both chambers of the New York State Legislature, nor in Governor Kathy Hochul's budget plan. Bloomberg noted that amid pressure to raise taxes due to fiscal deficits, Mamdani's plan could further unsettle wealthy New Yorkers already wary of his progressive policies.
Mamdani, a progressive politician in his 30s of Indian Muslim heritage, was elected New York City mayor on November 4 last year. The former state legislator was initially a relatively unknown political newcomer but sparked a political sensation by persistently tapping into frustrations among New Yorkers struggling with high inflation. His platform—including higher taxes on the wealthy, rent freezes, free childcare, and free buses—drew criticism from President Donald Trump, who called him a "crazy communist."