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New York City Mayor Eric Adams, earlier this week announced “Axe the Tax for the Working Class,” an ambitious proposal to bring significant tax relief to working-class families and return over $63 million to more than 582,000 New Yorkers. The plan would eliminate the New York City Personal Income Tax for filers with dependents living at or below 150 percent of the federal poverty line, as well as lower city personal income taxes for filers immediately above that threshold too. Mayor Adams will advocate for the proposal as part of the Fiscal Year 2026 (FY26) New York state budget with the support of New York State Senator Leroy Comrie and New York State Assemblymember Rodneyse Bichotte Hermelyn, who will introduce it during the upcoming legislative session. If passed into law, Axe the Tax for the Working Class could bring relief to working-class families as soon as tax year 2025
Axe the Tax for the Working Class builds on the Adams administrations’ continued efforts to help put money back into the pockets of working-class New Yorkers. In 2022, Mayor Adams successfully pushed Albany to expand the New York City Earned Income Tax Credit (NYC EITC) for the first time in nearly two decades, delivering more than $345 million in tax relief to New Yorkers over the 2023 tax season. When combined, both Axe the Tax for the Working Class and the new, enhanced NYC EITC would put more than a collective $408 million back into the pockets of 2 million New Yorkers and effectively eliminate New York City income taxes for a family of four making less than $46,350.
“Extreme costs are driving many working-class families out of cities like New York, and while, for too many decades, across too many administrations, we let these problems languish, our administration said enough is enough. Today, we are unveiling ‘Axe the Tax for the Working Class,’ a bold proposal to eliminate New York City income taxes for hundreds of thousands of working-class New Yorkers and their families here in the five boroughs and lower taxes for even more of our city’s residents,” said Mayor Adams. “This ambitious plan will put more than $63 million back into the pockets of over 582,000 New Yorkers, and, when combined with the New York City Earned Income Tax Credit, will put more than $400 million back into the pockets of 2 million working-class New Yorkers. I did not become mayor just to watch other families struggle the way that mine did, so this money will help more families cover rent, pay for prescriptions, and pick up groceries. On issue after issue, New York City is leading the nation, so we’re hopeful more cities across the country will ‘Axe the Tax.’ I want to thank Senator Comrie and Assemblymember Bichotte Hermelyn for agreeing to introduce this legislation, as well as HTC and 32BJ for their support. We look forward to working with Albany over the next few months to pass this landmark proposal and give working-class families the relief they finally deserve.”
“From day one of our administration, Mayor Adams tasked me with supporting the families and working-class New Yorkers who keep our city running. That’s why we are turning New York into a ‘City of Yes’ with the most pro-housing zoning changes in our city’s history, increasing opportunities for good-paying jobs, and putting money back into working-people’s pockets,” said First Deputy Mayor Maria Torres-Springer. “Our ‘Axe the Tax’ proposal will give $63 million back to working people and ensure that over 582,000 New Yorkers will benefit from having more money for groceries, child care, health care, and the needs of everyday life. We want all New Yorkers to know that they can raise their family here in the five boroughs and thrive.”
Axe the Tax for the Working Class would eliminate New York City Personal Income Taxes for filers with dependents — largely families with children — living at or below 150 percent of the federal poverty line. Additionally, the proposal would gradually phase out the city personal income tax for filers immediately above — within $5,000 — of 150 percent of the federal poverty line.
