Mayor Zohran Mamdani released a $124.7 billion executive budget for Fiscal Year 2027 on Monday, announcing that the city has closed a deficit of more than $12 billion without raising property taxes, cutting services, or drawing down reserve funds. The budget raises new revenue through a first-ever pied-à-terre tax on non-resident-owned second homes valued above $5 million and a reduction in the Unincorporated Business Tax credit, measures the mayor framed as asking the wealthiest New Yorkers to contribute more to support city services.

“While you do not choose the deficit you inherit, you do choose how you respond to it,” Mamdani said at the Monday press conference. “We have balanced the budget, and we have done so without placing the burden on the backs of working New Yorkers.”

The pied-à-terre tax, secured in partnership with Governor Kathy Hochul, is projected to generate $500 million in annual revenue. The city also plans to work with City Council Speaker Julie Menin on reducing the Unincorporated Business Tax credit — which Sherif Soliman, director of the Mayor’s Office of Management and Budget, said primarily affects those with more than $1 million in income from pass-through entities — raising an additional $68 million annually. Both measures require state authorization before taking effect, and Soliman said implementation details on the pied-à-terre tax are still being finalized with state partners.