New York City Mayor Eric Adams has announced an ambitious proposal aimed at providing significant tax relief for working-class families, a move he says will help make the city more affordable.

The plan, titled “Axe the Tax for the Working Class,” seeks to eliminate the New York City Personal Income Tax for families earning at or below 150% of the federal poverty line, while also lowering taxes for families slightly above that threshold.

A Bold Step Toward Affordability

In his announcement, Mayor Adams emphasized the transformative potential of the proposal, which is expected to return over $63 million to more than 582,000 New Yorkers.

“Let’s eliminate the NYC income tax for working-class families! You heard that right! Today, we introduced ‘Axe the Tax for the Working Class,’ a bold proposal that will put $63 MILLION back in the pockets of working-class New Yorkers,” Adams declared.

The initiative builds on the administration’s previous success with the expansion of the NYC Earned Income Tax Credit (EITC), which delivered over $345 million in tax relief during the 2023 tax season. Together, the two initiatives would provide a combined $408 million in relief, benefiting over two million residents.

“When you combine ‘Axe the Tax’ with our historic expansion of the NYC Earned Income Tax Credit, it will put more than $400 million back into the pockets of over 2 million people — helping more families cover rent, pay for prescriptions, and pick up groceries,” Adams added.

Legislative Support and Vision

Mayor Adams is advocating for the proposal to be included in the Fiscal Year 2026 New York State budget, with support from State Senator Leroy Comrie and Assemblymember Rodneyse Bichotte Hermelyn. If passed, the plan could take effect as early as the 2025 tax year.

Senator Comrie praised the initiative, saying, “Working-class families are the beating heart of New York City, but too many of them are still struggling to get by. This bold proposal will give tens of millions of dollars back to New Yorkers and help make our city more affordable for families.”

Assemblymember Bichotte Hermelyn added, “Despite the extraordinary progress we have made, we know there is even more we can do to support working-class families. Mayor Adams’ ‘Axe the Tax’ proposal will give hundreds of millions of dollars back to New Yorkers and help even more families get ahead in our city.”

Who Stands to Benefit?

Under the proposal, families with dependents earning up to $46,350 annually (for a family of four) would see their city income tax eliminated. Households slightly above this threshold would also experience reduced taxes. The average benefit is projected to be around $350 per household.

First Deputy Mayor Maria Torres-Springer highlighted the administration’s broader strategy to support working families. “Our ‘Axe the Tax’ proposal will ensure that over 582,000 New Yorkers benefit from having more money for groceries, child care, health care, and the needs of everyday life,” she said.

Empowering New Yorkers

The proposal complements other initiatives such as the NYC Free Tax Prep program, which has saved residents nearly $57 million in tax preparation fees since the start of the Adams administration.

As Mayor Adams concluded, “Extreme costs are driving many working-class families out of cities like New York, and while, for too many decades, across too many administrations, we let these problems languish, our administration said enough is enough. We’re hopeful more cities across the country will ‘Axe the Tax.’”

The “Axe the Tax” initiative represents a bold step in the Adams administration’s ongoing efforts to support the city’s working class, fostering a more equitable and affordable New York for all.