Gov. Kathy Hochul proposes no NY state tax on tips after major backlash
ALBANY – New Yorkers may finally see relief from taxes on tips, with Gov. Kathy Hochul saying she’ll propose enacting the policy this year.
In a statement released Thursday morning, Hochul said she’d seek to eliminate state income taxes on up to $25,000 in tipped earnings — following through on President Trump’s initiative to eliminate federal taxes on tips.
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“I’m kicking the new year off with a proposal of no state income tax on tips, continuing my efforts to make New York more affordable for hard working New Yorkers,” Hochul wrote.
The tax-on-tips elimination will be included in Hochul’s state budget proposal to be released later this month, dropping taxes on tips earned in 2026.
Republicans have whacked blue states like New York, Illinois and California for not moving to make sure state income taxes were also eliminated starting this year.
Hochul, a Democrat seeking re-election in 2026, also faced backlash from New York bartenders and restaurant workers, who urged her to extend Trump’s policy to state income taxes.
“If we weren’t taxed on our tips, we’d be able to save more, we’d enjoy life a little more, maybe we wouldn’t have to pick up that extra shift,” Rion Gallagher, a bartender at The Blasket in Midtown, told The Post last week.
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