New York City Mayor Eric Adams on Monday led a rally at City Hall celebrating the inclusion of his “Axe the Tax for the Working Class” proposal in the Fiscal Year 2026 New York state budget and thanking state partners, labor unions, and nonprofit advocates for their support.

Adams said the ambitious proposal will bring significant tax relief to working-class families by eliminating and cutting city personal income taxes for more than 582,000 filers and their dependents.

First announced in December 2024 with the support of New York State Sen. Leroy Comrie and New York State Assemblymember Rodneyse Bichotte Hermelyn, Adams said the plan would return over $63 million to New Yorkers by eliminating the New York City Personal Income Tax for filers with dependents living at or below 150 percent of the federal poverty line, as well as lowering city personal income taxes for filers with dependents immediately above that threshold, too.

If enacted, the mayor said Axe the Tax for the Working Class could bring relief to working-class families as soon as tax year 2025 and help strengthen the Adams administration’s efforts to make New York City the best place to raise a family.

“If there is one thing New Yorkers can agree on, it’s that the cost of living in this city is too damn high, especially for working-class New Yorkers. Rent, food, gas, child care, cable — it adds up, and it’s too much. Extreme costs are driving too many families — especially working-class families — out of cities like New York, which is why our administration is working to help New Yorkers save money every day,” said Mayor Adams. “Our ‘Axe the Tax’ plan will take that work to the next level and give tens of millions of dollars back to the families who need it most.

“Thank you to the coalition of leaders and advocates who have supported this proposal and fought to give working-class New Yorkers the relief they deserve,” he added.

The mayor said Axe the Tax for the Working Class would eliminate New York City Personal Income Taxes for filers with dependents — largely families with children — living at or below 150 percent of the federal poverty line.

Additionally, he said the proposal would gradually phase out the New York City Personal Income Tax for filers whose income is immediately above — within $5,000 — of 150 percent of the federal poverty line.

By eliminating the New York City Personal Income Tax for working-class families, the mayor said the proposal would return nearly $46 million to over 429,000 New Yorkers, including both tax filers and their dependents.

Additionally, by lowering taxes for people immediately above 150 percent of the federal poverty line, he said the proposal would return another $17 million to over 152,500 New Yorkers and their dependents, putting more than a collective $63 million back into the pockets of working-class New Yorkers.

The proposal alone will deliver an average benefit of approximately $350 per household,” Adams said.

“With the state budget process edging closer to completion, Mayor Adams’ Axe the Tax for the Working Class initiative will provide much-needed relief to thousands of hardworking New Yorkers, ensuring they can keep more of their earnings to support their families,” said Comrie. “This effort will not be possible without the dedication of our state partners, organized labor, and nonprofit advocates who are fighting tirelessly to make this vision a reality. By eliminating and reducing the city’s personal income tax for those most in need, we are taking a critical step toward making New York City more affordable and livable.

“I am proud to have championed this initiative being included in the budget alongside my colleague Assemblywoman Rodneyse Bichotte-Hermelyn, and I look forward to seeing the positive impact it will have on our communities,” he added.

“I appreciate the efforts of Mayor Adams and my colleagues in government for working to provide tax relief for the middle class. This kind of Personal Income Tax relief is not just a financial necessity, but also demonstrates a commitment to the hardworking families who are the backbone of our economy,” said New York State Senator Joseph P. Addabbo Jr. “I believe the effects of Axe the Tax would have a positive direct impact in helping individuals struggling to pay for health care, groceries, rent, rising insurance premiums, property taxes and costs associated with everyday life. I remain hopeful we can implement this tax relief properly for the benefit of our residents.”

“By eliminating and reducing the city personal income tax for over half a million New Yorkers, we are providing real relief to those who are working hard to make ends meet,” said New York State Assemblymember Rodneyse Bichotte Hermelyn. “The inclusion of Mayor Adams’ Axe the Tax for the Working Class proposal in our state FY26 budget is a major victory for all New Yorkers and a critical step toward easing the financial burden on families who need it most. I’m committed to making New York City more affordable, and that’s why I first co-sponsored this legislation to ‘Axe the Tax for the Working Class’ with Senator Leroy Comrie.

“I thank Mayor Adams, my legislative colleagues, and our partners in organized labor for standing together to prioritize ensuring New York City remains a welcoming home where every family can thrive,” added the daughter of Haitian immigrants, who represents the 42nd Assembly District in Brooklyn and who chairs the Brooklyn Democratic Party.