Mayor Zohran Mamdani’s proposal for a 2% city income tax surcharge on New Yorkers earning above $1 million requires New York State legislative approval and faces entrenched opposition from Governor Kathy Hochul, who has resisted new tax increases amid ongoing budget negotiations. The measure has not advanced through Albany sessions despite repeated calls from the mayor since early 2026, while lawmakers instead enacted a pied-à-terre tax on luxury second homes as part of the 2026-2027 state budget. With only months remaining before the end of 2026, the compressed timeline, procedural hurdles, and competing fiscal priorities have produced near-unanimous trader consensus against passage. A late-session compromise or abrupt shift in gubernatorial support could still alter the outcome before year-end.