NEWYou can now listen to Fox News articles!
New York City Mayor Zohran Mamdani is under fire for backing a plan that would slash New York’s estate tax exemption by nearly 90%, a move opponents say could drag middle-class families into a tax burden long aimed at the rich.
New York is one of the states that imposes its own estate tax in addition to the federal levy, and the proposed changes would dramatically expand its reach—potentially sweeping in not just the wealthy, but families whose primary asset is a home they hoped to pass on to their children.
MAMDANI’S RENT FREEZE, TAX HIKES A ‘ONE-TWO WEALTH DESTRUCTION PUNCH,’ ECONOMISTS WARN
Zohran Mamdani celebrates during an election night event in Brooklyn, New York on Nov. 4, 2025. (Angelina Katsanis/AFP/Getty Images)
The plan would sharply reduce how much of an estate can be passed on tax-free, cutting the threshold from $7.35 million to just $750,000, among the lowest in the country, meaning far more estates would be subject to taxation.
In addition, Mamdani is proposing to more than triple the state’s top estate tax rate, raising it from 16% to 50%, a combination that could generate billions in new revenue for New York.
Edward Pinto, a senior fellow and co-director of the AEI Housing Center at the American Enterprise Institute, told Fox News Digital the proposal could push residents and their wealth out of New York.
“This proposal would destroy NYC’s wealth in a different manner,” Pinto said.
“This estate tax proposal will mistreat capital and result in the voluntary exodus of NYC residents and their wealth to places like Florida and Tennessee,” he added.
FROM FREE BUSES TO CITY-OWNED GROCERY STORES, HERE ARE MAMDANI’S KEY ECONOMIC PROMISES
Riders on the Staten Island ferry view the Manhattan skyline on Dec. 19, 2025. (Adam Gray/Bloomberg/Getty Images)
Others echoed similar concerns, pointing to the potential impact on families and long-term financial planning.
Joshua Rowley, a research fellow at the…
