In a move that could have major implications for working-class families, New York City Mayor Eric Adams has thrown his weight behind a new fiscal proposal - "Axe the Tax for the Working Class." This bold plan aims to abolish New York City Personal Income Tax for taxpayers with dependents earning up to 150 percent of the federal poverty line. According to an announcement from the Mayor's office, not only would this eliminate taxes for families living at or below this income threshold, but also reduce city personal income taxes for those slightly above it.
Advocacy for the "Axe the Tax for the Working Class" measure will be part of Mayor Adams' push for the FY26 state budget. The proposal, as outlined by NYC's official press release, could generate relief as early as the 2025 tax year, benefitting over 582,000 New Yorkers and potentially delivering an average household benefit of about $350. Furthermore, when this initiative is combined with the recently augmented NYC Earned Income Tax Credit (EITC), a family of four making under $46,350 could essentially see city income taxes eradicated.
The proposal seems to be a continuum of Mayor Adams' dedication to easing the financial burdens of the city's residents. In a statement obtained by the City of New York, Mayor Adams expressed, "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." He added, "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."
In terms of the practical impact of the proposal, it would return nearly $46 million to over 429,000 New Yorkers, encompassing both tax filers and their dependents. For those hovering just above 150 percent of the federal poverty line, within $5,000 of the threshold, the plan would offer an additional $17 million in tax relief to over 152,500 residents. With the Adams administration already recognized for putting more than $30 billion back in New Yorkers' wallets through various city, state, and federal programs, the administration claims these initiatives are a testament to their commitment to support economizing by connecting people with resources.
Spearheading the proposal in the state legislature will be New York State Senator Leroy Comrie and New York State Assemblymember Rodneyse Bichotte Hermelyn. In the same press release, Bichotte Hermelyn expressed enthusiasm, saying, "I applaud the mayor and his team for putting forward this ambitious idea, and I look forward to making this proposal law in the upcoming legislative year." Additionally, free tax preparation resources provided through the New York City Department of Consumer and Worker Protection’s "NYC Free Tax Prep" program, have already saved New Yorkers nearly $57 million in tax prep fees by assisting in the filing of approximately 257,000 tax returns at no charge.
