“Axe the Tax for the Working Class,” an ambitious new plan proposed by NYC Mayor Eric Adams, could eliminate city income tax as soon as next year, putting $63 million back into the pockets of 582,000 New Yorkers.
The plan would bring significant tax relief to working-class families by eliminating the NYC Personal Income Tax for families living at or below 150% of the federal poverty line. These taxes would also be lowered for New Yorkers immediately above the threshold as well.
Axe the Tax for the Working Class builds on the Adams administrations’ ongoing efforts to put money back into the pockets of working-class New Yorkers. Combined with the New York City Earned Income Tax Credit (NYC EITC), which Adams successfully pushed Albany to expand back in 2022, the plans would deliver a collective $408 million back into the pockets of 2 million New Yorkers and eliminate income taxes for a family of four making less than $46,350.
Adams stated:
Extreme costs are driving many working-class families out of cities like New York, and…our administration said enough is enough…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.
Adams is advocating for the proposal as part of the Fiscal Year 2026 (FY26) New York state budget. If passed into law, Axe the Tax for the Working Class could eliminate taxes as early as tax year 2025, providing much-needed relief to hundreds of thousands of NYC families.