Overview
- Her office says the measure will track federal guidance from President Donald Trump’s package that lets eligible workers deduct up to $12,500 in tips, or $25,000 for married couples filing jointly.
- Details will be set in an executive budget expected later this month, with eligibility, deduction amounts, retroactivity, and fiscal costs to be negotiated with the legislature.
- Some outlets report the state change could apply to tips earned in 2026 or cover up to $25,000, but those particulars have not been formally confirmed.
- Hochul cast the move as part of an affordability agenda that includes expanded child tax credits and a middle-class tax cut.
- New minimum wage levels are now in effect at $16 for most of the state and $17 in New York City, Westchester, and Long Island.