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 a 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.
Hochul made the proposal after tipped workers hammered her for not following Trump on the issue. Andrew Schwartz / SplashNews.com
The elimination of gratuity taxes 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.
Nassau County Executive Bruce Blakeman, who is running to unseat Hochul and was among those knocking her for being slow to act, cheered the move and said he’d be happy to provide the governor with “tips” of his own — tax free.
“I see Kathy Hochul is doing a u-turn on taxing tips. I was told she changed her mind after I said I would never tax tips. Kathy if you want more of my ‘tips’ on how to govern just continue to follow my lead,” Blakeman told The Post.
The Post’s cover on Hochul and New York state Democrats not extending the “No tax on tips” policy to state taxes.
Hochul, a Democrat seeking re-election this year, 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.
Hochul’s announcement came with little fanfare. It was mentioned in a press release dropped just hours before New York City Mayor Zohran Mamdani’s public inauguration ceremony outside City Hall, which the governor attended.
Hochul also used the opportunity to tout other aspects of her flimsy knee-jerk “affordability” agenda, including a 0.1% decrease in state income taxes on most middle class earners, a planned increase in the minimum wage and a boost to the child tax credit going into effect in 2026.
But the tax eliminating proposal has existed in Albany in some form since at least early last year when Assemblyman Mike Durso (R-Nassau) and state Sen. Jack Martins (R-Nassau) introduced a bill to scrap levies on tips.
Hochul’s initial decision to not extend “No tax on tips” to state taxes earned the scorn of servers across New York — including Hannah Teal of George and Jack’s Tap Room in Williamsburg, Brooklyn (above). Kevin C Downs forThe New York Post
Durso said Hochul shouldn’t wait to pack the policy into the burgeoning state budget package, which isn’t likely to be passed before its April 1 deadline.
“We don’t need to add stuff to it, attach stuff to it that’s going to make it stink. Let’s just get it done,” Durso said.
“This is plain and simple. It’s going to help working class people,” he added. “I don’t see any pushback, and if there is pushback on it from any of my colleagues, shame on them because they obviously have never worked in these types of industries and understand how hard these people work.”
State Senate Minority Leader Rob Ortt (R-Niagara) also supported no taxes on overtime in a post on X Thursday.
Other lawmakers knocked Hochul for paying lip service to her “affordability” agenda, noting the tax policy would have already been in effect had the governor picked it up earlier.
“It seems like the Democratic playbook is that anything that has Donald Trump’s name on it, they can’t accept it,” state Sen. Dean Murray (R-Suffolk) told The Post.
“Governor Hochul and the Democrats in Albany talk a good game when it comes to affordability and supporting hardworking New Yorkers but talk is cheap,” said Rep. Nicole Malliotakis (R-NY).
Malliotakis went a step further in calling for eliminating taxes on overtime pay, as well.
“They should quickly extend the federal tax breaks Republicans delivered for tipped and overtime workers to the state level,” she told The Post.