ALBANY – New Yorkers may finally see relief from taxes on tips, with Gov. Kathy Hochul saying she’ll propose enacting the policy this year after garnering backlash — and Post front-page story.
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.
“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 heat from New York bartenders and restaurant workers, who urged her to extend Trump’s policy to state income taxes, The Post reported Friday.
“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,” said Rion Gallagher, a bartender at The Blasket in Midtown.
