CITYWIDE — Mayor Eric Adams announced his plan to “Axe the Tax for the Working Class,” a proposal to bring New York City Personal Income Tax relief to working-class families. 

“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. “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.’ 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.”

“Axe the Tax” proposes to eliminate NYC Personal Income Tax for filers with dependents living at or below 150% of the federal poverty line, or families of four making less than $46,350. It also plans to lower the tax for New Yorkers immediately above that threshold, up to $5,000. 

“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,” said First Deputy Mayor Maria Torres-Springer. “We want all New Yorkers to know that they can raise their family here in the five boroughs and thrive.”

The proposal will deliver an average benefit of approximately $350 per household, and it aims to return nearly $46 million to over 429,000 New York families. By lowering taxes for people immediately above 150% of the federal poverty line, the proposal hopes to return another $17 million to over 152,500 New York families. The Adams Administration estimates a collective $63 million would be returned to working-class people. 

“Despite the extraordinary progress we have made in creating a safer, more affordable city for New Yorkers, we know that there is even more we can do to support our working-class families. Mayor Adams’ ‘Axe the Tax’ proposal — along with a historic expansion of the New York City Earned Income Tax Credit he advocated for — will give hundreds of millions of dollars back to New Yorkers and help even more families get ahead in our city,” said Assemblymember Rodneyse Bichotte Hermelyn. “I look forward to making this proposal law in the upcoming legislative year.” 

The proposal will be introduced as part of the Fiscal Year 2026 New York State budget and is backed by State Sen. Leroy Comrie and Bichotte Hermelyn, who will introduce it in the next legislative session.

“Working-class families are the beating heart of New York City, but too many of them are still struggling to get by. At a time when families need extra help with rent, child care, groceries, and more, this bold proposal will give tens of millions of dollars back to New Yorkers and help make our city more affordable for families,” said Comrie. “I look forward to working with my partners in Albany to deliver this crucial relief for our city.”

If passed, “Axe the Tax” could be reflected as soon as tax year 2025. The plan will be most effective when combined with the New York City Earned Income Tax Credit (EITC) which was expanded in 2022 and reflected in $345 million in tax relief in the 2023 tax season. The Adams Administration estimates that a collective $408 million would be reflected after “Axe the Tax” is implemented, impacting two million New Yorkers.

“Encouraging Albany to eliminate the NYC personal income tax for working class New Yorkers is a good idea,” said New York City Comptroller Brad Lander, who is also a mayoral candidate. “It would be great if the Mayor would deliver for working-class families on things he actually has control over, like making sure there’s child care for every three-year-old, libraries that are open when people need them and that it doesn’t take months longer than it should for families to get food stamps or placed into available affordable housing units.”

Adams and his administration have cited the expansion of NYC EITC in 2022 as proof of their efforts to advocate for lower-income families in the city. But amidst Adams’ indictment and trial set for spring 2025, Adams and his team face critique and hesitance from politicians, city officials and New Yorkers.

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