In the race for mayor, there’s a clear and substantial wealth divide between candidates with private-sector income and those who earn their living working for the government.

Republican mayoral candidate Joe Lhota, a former chairman of the Metropolitan Transportation Authority who continued last year to earn money from his private-sector work, reported just under $2 million in total income in 2012, according to a copy of his federal tax return released by his campaign.

Mr. Lhota was, by far, the best paid among the mayoral candidates who released their returns Tuesday. The bulk of his income—$1.48 million—was deferred compensation from Madison Square Garden Co., MSG +1.78% where Mr. Lhota served as executive vice president until he left to run the MTA in November 2011. Mr. Lhota earned $295,881 from the MTA and just over $200,000 in dividends, interest and business income.

Democratic hopeful Bill Thompson, who worked in recent years as a senior managing director at Seibert Brandford Shank & Co., a municipal-bonds underwriter, reported earning more than $725,000 in 2012, according to a copy of his federal tax return….

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