CITYWIDE — Mayor Eric Adams announced his plan to “Axe the Tax for the Working Class,” a proposal to bring significant tax relief to working-class families. “Axe the Tax” proposes to eliminate the New York City personal income tax for filers with dependents living at or below 150% of the federal poverty line. It also plans to lower the tax for New Yorkers immediately above that threshold.

“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 two million working-class New Yorkers,” said Adams. 

The proposal will be introduced as part of the Fiscal Year 2026 New York State budget, and if passed, “Axe the Tax” could be reflected as soon as tax year 2025. The proposal is backed by State Sen. Leroy Comrie and Assemblymember Rodneyse Bichotte Hermelyn, who will introduce it in the next legislative session.