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It marks the second big win for Democrats in an election seen as a referendum on US President Donald Trump.
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Mamdani is set to be the city's first Muslim mayor of south Asian descent.
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Virginia also has contests for lieutenant governor and attorney general.
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The Democrat is projected to win Virginia's governor race, making her the state's first female governor.
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Track live New Jersey governor race results and see how candidates are doing.
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The 34-year-old assemblyman won the Democratic primary by defying the city's all-powerful establishment. He secured the mayoralty by delicately disarming it.
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The 34-year-old, Ugandan-born democratic socialist defeated former New York Gov. Andrew Cuomo, who ran as an Independent, in Tuesday's election, according to a race call by the Associated Press.
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President Donald Trump said that the reason that Republicans lost big was because he was not on the ballots and because of the federal government shutdown.
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Mamdani, a democratic socialist and state assemblymember, will make history as the first Muslim and South Asian person — as well as the youngest in over a century — to serve as New York City mayor.
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;Resize=(620)) Democratic candidates notched wins in gubernatorial races in New Jersey and Virginia on Tuesday night, and in New York City's high-profile mayoral contest.
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