{"id":3024,"date":"2025-12-09T14:30:27","date_gmt":"2025-12-09T19:30:27","guid":{"rendered":"https:\/\/council.nyc.gov\/press\/?p=3024"},"modified":"2025-12-09T14:30:27","modified_gmt":"2025-12-09T19:30:27","slug":"nyc-councils-economic-forecast-projects-3-4-billion-more-in-tax-revenue-for-fiscal-years-2026-and-2027-compared-to-mayors-office-of-management-and-budget","status":"publish","type":"post","link":"https:\/\/council.nyc.gov\/press\/2025\/12\/09\/3024\/","title":{"rendered":"NYC Council\u2019s Economic Forecast Projects $3.4 Billion More in Tax Revenue for Fiscal Years 2026 and 2027 Compared to Mayor\u2019s Office of Management and Budget"},"content":{"rendered":"

City anticipated to see moderately increased revenues, despite continued uncertainty and challenges from tariffs and federal policy decisions<\/em><\/p>\n

City Hall, NY \u2013 <\/strong>Today, the New York City Council released its December 2025 Economic and Tax Revenue Forecast, which projects the City\u2019s economy will remain resilient and lead to a slightly improved tax revenue outlook, despite uncertainty and challenges stemming from federal economic and tariff policies. It estimates $3.4 billion in greater tax revenues for Fiscal Years (FY) 2026 and 2027 than the Mayor\u2019s Office of Management and Budget\u2019s (OMB) indicated in its November 2025 Financial Plan. The differences in projections are mainly driven by stronger than expected personal income, as well as a more comprehensive reforecast of taxes than OMB. The City\u2019s tax revenue growth rate is projected to remain moderate at an average of 3.4% annually from FY26 to FY29, compared to the 5.5% average annual tax revenue growth experienced over the decade of FY10 to FY19.<\/p>\n

The full economic forecast report can be found here<\/a>.<\/p>\n

\u201cThe Council\u2019s latest economic and tax revenue forecast projects continued positive growth despite Trump\u2019s reckless policies, with $3.4 billion more in expected tax revenue than OMB\u2019s November Plan for the next two fiscal years,\u201d said Speaker Adrienne Adams and Finance Committee Chair Justin Brannan<\/strong>.\u201cThe national and city economies remain resilient, which means our city will continue to have the necessary resources to invest in essential services to meet the needs of all New Yorkers. The next Mayor and Council will have what is needed for continued targeted investments to make our city more affordable while confronting the inequities facing our diverse communities. Protecting New Yorkers from threats that undermine our fiscal health<\/a> and stability must also remain a top priority.\u201d<\/p>\n

Aided by the federal budget bill and the Federal Reserve\u2019s policy interest rate reductions, the national economy overall is expected to grow. However, this economic growth will continue to be unevenly distributed, with consumer spending highly concentrated in higher income brackets, while lower-income households will continue to be constrained by the impact of tariffs and the rising cost of living.<\/p>\n

Year-over-year, the city experienced 1.9% total employment growth, with lower-wage job sectors like home health care and social services continuing to be the main driver of job growth in the city. At the same time, the financial sector saw a 1.1% decline in employment growth, and the construction trades experienced the highest decline of 5.4% since last August. <\/a><\/p>\n

New York City\u2019s real estate market is one of the key indicators of local economic health, and the market underpins over half of the City\u2019s tax revenues. The city\u2019s real estate landscape shows a resilient high-end commercial office market and a stable residential market, with recent sales momentum as mortgage rates gradually decline. Manhattan\u2019s Class A leasing<\/a> registered<\/a> record year-to-date activity, while office vacancies continue to decrease slightly, from 22.7% to 22.1%, due to increasing office-to-residential conversions and a limited construction pipeline.<\/p>\n

###<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"

City anticipated to see moderately increased revenues, despite continued uncertainty and challenges from tariffs and federal policy decisions<\/em><\/p>\n

City Hall, NY \u2013 <\/strong>Today, the New York City Council released its December 2025 Economic and Tax Revenue Forecast, which projects the City\u2019s economy will remain resilient and lead to a slightly improved tax revenue outlook, despite uncertainty and challenges stemming from federal economic and tariff policies.<\/p>\n

…<\/p>\n

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