New York Governor Kathy Hochul is highlighting her affordability agenda for the year.
New York Gov. Kathy Hochul says affordability is her top priority in 2026, highlighting tax cuts, higher wages, and expanded credits for families and workers.
Hochul Aims To Make New York State More Affordable
Hochul says she’s going to propose laws that get rid of state income taxes for tipped income, up to 25 thousand dollars. Meanwhile, she’s reminding New Yorkers that starting this year, a tax cut for middle-class workers goes into effect, providing nearly one billion dollars in tax relief. Also, this year, New York’s child tax credit expands, and the state’s minimum wage is now higher.
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“As we welcome in the New Year, affordability remains my top priority and I am doubling down on my commitment to put money back in New Yorkers’ pockets,” Hochul stated
Middle Class Tax Cuts
New York Governor Kathy Hochul And NYC Mayor Eric Adams Make Announcement On Gun Violence
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In the 2026 budget, New York lawmakers secured a middle-class tax cut. Hochul says the tax breaks will deliver nearly $1 billion in tax relief to over 8.3 million New Yorkers.
“This will provide savings to taxpayers earning up to $323,000 for joint filers. When fully phased in, the middle class tax cut will deliver hundreds of dollars in average savings to nearly 77 percent of filers — representing three out of every four taxpayers,” Hochul’s office told Hudson Valley Post.
Sweeping Increase in Child Tax Credit
Hochul’s Office
Hochul’s Office
The budget also provides what’s called a “sweeping increase” in the child tax credit. This is expected to provide “critical financial support for more than 2.75 million children statewide.”
The change doubles, or in most cases, triples the current tax credit, providing up to $1,000 annually per child under four and up to $500 per child aged four to 16.
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The expansion will be phased in over two years. Families with children under four will start seeing benefits this year, with the tax credit extending to older children in 2027.
Increasing the Minimum Wage
New York Governor Hochul Makes an Announcement
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As of Jan. 1, 2026, New York State’s minimum wage increased to $17.00 per hour in New York City, Westchester, and Long Island, and $16.00 per hour in the rest of the state.
Next year, the minimum wage will increase annually at a rate determined by the Consumer Price Index, the most accurate regional measure of inflation.
“Tax rates for the vast majority of lower and middle-class New Yorkers will be cut, families with children will see a sweeping increase in the child tax credit, and minimum wage workers across the state will see their wages go up. 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 added.
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