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flag New York Governor Kathy Hochul proposes eliminating state tip taxes in 2027 to boost service workers’ pay, part of a broader affordability plan.

flag New York Governor Kathy Hochul plans to propose eliminating state taxes on tips in her 2027 budget, aiming to boost take-home pay for service workers. flag The move follows federal guidance allowing up to $12,500 in annual tip deductions, with higher limits for joint filers. flag The proposal is part of a broader affordability agenda including expanded child tax credits and a middle-class tax cut expected to deliver nearly $1 billion in relief to over 8.3 million residents. flag The state also raised its minimum wage to $16 per hour for most workers and $17 in NYC, Westchester, and Long Island, effective January 1, 2026. flag Hochul emphasized economic relief as a top priority for 2026.

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