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Hochul to put forward ‘no tax on tips’ proposal in New York
The proposal exempts up to $25,000 in tips from New York state income tax, aligning with federal guidance to reduce financial burdens on service workers.
- On Thursday, New York Gov. Kathy Hochul will include a no state income tax on tips proposal in her 2027 fiscal year executive budget, her office said.
- Following national attention on the federal 'no tax on tips' provision included in Trump's 'One Big, Beautiful Bill,' federal policy lets qualified service workers deduct up to $25,000 annually, benefiting many.
- The governor also tied the move to wage and tax changes, including middle-class tax cuts taking effect Thursday and an increase in minimum wage to $16 an hour for most New Yorkers, Hochul said.
- Service-Industry workers argue removing tax on tips could provide relief, with Rion Gallagher telling the Post `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`.
- Amid criticism from conservatives, Scott Bessent used X to call Democrat governors `Grinches Who Stole Christmas`, and Hochul mocked it as `Grinch fanfic`, signaling shifting political optics.
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Buffalo NewsReposted by 
Glens Falls Post-Star
Glens Falls Post-StarHochul calls to make tip income tax-free up to $25,000
Echoing a federal proposal from President Trump, Gov. Kathy Hochul on Thursday called to eliminate the state's income tax on up to $25,000 that New Yorkers earn from tips.
·Buffalo, United States
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NY Gov. Hochul Proposes Ending State Income Tax on Tips
New York Gov. Kathy Hochul has proposed eliminating state income taxes on tips, following backlash from service-industry workers. Her plan would remove New York state income tax on up to $25,000 in tipped earnings, aligning with President Trump’s move to end federal taxes on tips.
Kathy Hochul to propose No Tax on Tips legislation in New York's 2027 executive budget
The governor also noted that the state's minimum wage will also increase starting Thursday, which will now be $16 an hour for most New Yorkers and $17 an hour in New York City, Westchester, and Long Island.
·Washington, United States
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Coverage Details
Total News Sources11
Leaning Left0Leaning Right4Center6Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
C 60%
R 40%
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