Mayor Adams proposes "Axe the Tax" to Cut NYC income taxes

New York City Mayor Eric Adams has unveiled “Axe the Tax for the Working Class,” a transformative proposal to eliminate personal income taxes for working-class families and return $63 million to more than 582,000 New Yorkers.

If enacted, the plan would eliminate city income taxes for filers with dependents living at or below 150% of the federal poverty line and reduce taxes for those slightly above that threshold.

The proposal, which Mayor Adams will advocate for in the Fiscal Year 2026 (FY26) New York State budget, builds on his administration’s commitment to putting money back into the hands of working-class New Yorkers. “Extreme costs are driving families out of cities like New York,” said Mayor Adams. “This bold proposal will eliminate taxes for hundreds of thousands and put over $400 million back into the pockets of working-class New Yorkers when combined with our expanded Earned Income Tax Credit.”

The plan, supported by State Senator Leroy Comrie and Assemblymember Rodneyse Bichotte Hermelyn, aims to take effect as early as the 2025 tax year. It would save families an average of $350 per household, with additional relief provided through the NYC Earned Income Tax Credit expansion. Together, these initiatives would deliver an average benefit of $800 per household and eliminate city income taxes for families of four earning less than $46,350 annually.

Mayor Adams highlighted the urgent need for relief, emphasizing how the funds would help families pay for essentials like rent, prescriptions, and groceries. First Deputy Mayor Maria Torres-Springer called the proposal a step toward ensuring families can “raise their children here in the five boroughs and thrive.”

New York State Senator Comrie praised the initiative, saying it would “give tens of millions of dollars back to New Yorkers and help make our city more affordable for families.” Assemblymember Bichotte Hermelyn echoed this sentiment, commending the mayor for addressing affordability and supporting working-class families.

This proposal follows other Adams administration efforts, such as the NYC Free Tax Prep program, which has saved New Yorkers nearly $57 million in tax preparation fees and facilitated over 257,000 free tax returns. If enacted, “Axe the Tax” could become a model for other cities looking to ease the financial strain on their working-class residents.