Importance Score: 70 / 100 🔴
Mayor Adams Proposes Income Tax Relief for Low-Income New Yorkers
In a last-minute push for the upcoming state budget, Mayor Eric Adams has proposed a significant income tax reduction for low-income residents of New York City. The mayor’s initiative, dubbed “Axe the Tax,” aims to eliminate New York City’s personal income tax for eligible filers.
“Axe the Tax” Proposal Details
The “Axe the Tax” proposal would repeal the city’s personal income tax for individuals and families with at least one dependent, earning at or below 150% of the federal poverty threshold.
According to City Hall calculations, this income level translates to approximately $36,789 annually for a three-person household consisting of two adults and one child. For a family of four, with two adults and two children, the threshold would be around $46,350 per year.
Addressing the High Cost of Living
Mayor Adams emphasized the urgency of the proposal, stating, “If there is one thing New Yorkers can agree on, it’s that the cost of living in this city is excessively high, particularly for working-class residents. Expenses like rent, groceries, transportation, childcare, and utilities are overwhelming.”
He added, “I believe New Yorkers desire financial relief, and this is a common ground we can all support.”
Potential Impact and Next Steps
The mayor’s plan, initially presented in December, could potentially benefit approximately 429,000 city residents. Low-income families could see an average tax refund of $350 annually, according to City Hall estimates.
Mayor Adams has formally requested Governor Kathy Hochul to incorporate this affordability measure into her state budget plan for the 2026 fiscal year.
Albany Approval Needed for Tax Changes
It is important to note that any alterations to city-level taxes require legislative approval from Albany.
Currently, Governor Hochul and state legislators are engaged in budget negotiations in Albany. The budget deadline, initially set for Tuesday, is expected to be missed as discussions remain stalled on contentious issues including New York’s discovery laws and the governor’s proposals on involuntary commitment policies.