Mayor Adams Unveils "Axe the Tax for the Working Class" | City of New York


Plan Would Abolish New York City Personal Income Taxes for More Than 429,600 Filers and Their Dependents, Lower Taxes for Over 152,500 More

Proposal Alone Would Put Over $63 Million Back Into Pockets of Over 582,000 New Yorkers

Mayor Adams Unveils "Axe the Tax for the Working Class," Bold Proposal to Eliminate New York City Income Taxes for Working-Class Families

December 4, 2024

Video available at: https://youtu.be/TY6oYp9l6Vc

Plan Would Abolish New York City Personal Income Taxes for More Than 429,600 Filers and Their Dependents, Lower Taxes for Over 152,500 More

Proposal Alone Would Put Over $63 Million Back Into Pockets of Over 582,000 New Yorkers

Axe the Tax Plan Follows Historic Expansion of NYC EITC, Which, Together With New Proposal, Would Deliver Collective $408 Million in Tax Relief to 2 Million New Yorkers

Mayor Adams Calls on State Legislature to Pass Proposal as Part of FY26 State Budget

NEW YORK – New York City Mayor Eric Adams today 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.”

“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 New York State Senator Comrie. “I commend Mayor Adams and his administration for the work they’ve already done to put money back in people’s pockets and help more people start and raise a family here in the five boroughs. I look forward to working with my partners in Albany to deliver this crucial relief for our city.”

“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 New York State Assemblymember Bichotte Hermelyn. “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.”

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.

Table for illustrative purposes showing maximum annual income for different family sizes at 150 percent of the of the current U.S. Census Bureau’s Official Poverty Measure. Data for larger family sizes can be found online.

By eliminating the New York City Personal Income Tax for working-class families, the proposal would return nearly $46 million to over 429,000 New Yorkers, including both tax filers and their dependents. Additionally, by lowering taxes for people immediately above 150 percent of the federal poverty line, the proposal would return another $17 million to over 152,500 New Yorkers, putting more than a collective $63 million back into the pockets of working-class people. The proposal alone will deliver an average benefit of approximately $350 per household.

Axe the Tax for the Working Class builds on the Adams administration’s work helping to put money back into people’s pockets. The Adams administration has already saved New Yorkers more than $30 billion by connecting people to city, state, and federal programs, including a historic expansion of the NYC EITC, which delivered an average benefit of approximately $450 per household. If passed into law, the Axe the Tax for the Working Class proposal and the NYC EITC would work together to deliver an average benefit of around $800 per household and effectively eliminate New York City income taxes for a family of four making less than $46,350.

Table showing possible tax relief for New York City families from
both Enhanced NYC EITC as well as Axe the Tax for the Working Class.

Additionally, since the start of the Adams administration, the New York City Department of Consumer and Worker Protection’s (DCWP) “NYC Free Tax Prep” program has helped New Yorkers save nearly $57 million in tax preparation fees by helping filers file approximately 257,000 tax returns for free. And this past tax season, more than 140 in-person sites provided free tax preparation services across the five boroughs. NYC Free Tax Prep providers also offered drop-off services and virtual tax preparation services. Further, last fall, DCWP launched NYC Free Tax Prep for self-employed filers, offering specialized services tailored to gig workers, freelancers, and small business owners who often face barriers to filing taxes and managing financial recordkeeping.

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