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Hochul matches Trump, announces no tax on tips for New Yo...
Craig McCart · 2026-05-08 · via New York Post

New Yorkers are set to get tax relief on tips as Gov. Kathy Hochul kept the break on gratuity in her presentation of a handshake budget deal announcement Thursday.

“We got it done, and I said we’d put even more money back in your pockets with relief for utility ratepayers, and by ending state income taxes on tips so that servers working the double shift can keep more of what they earn,” Hochul said from the Red Room.

Governor Kathy Hochul making a budget announcement.
Governor Kathy Hochul announced the legislature as going to remove taxes on tips. Mike Groll/Office of Governor Kathy Hochul
Donald Trump speaking at a roundtable on his "no tax on tips" policy.
Trump has been touting his signature no tax on tips policy around the country. AFP via Getty Images

“We got it done. Over the next few days, the legislature will be conferencing and voting on the budget bills.”

Hochul faced heat early this year to include the tax break to match Trump’s vow to eliminate the levy on the federal level.

A Post front page story at the time highlighted how bartenders and restaurant workers were peeved at the gov for failing to make the tips fully tax-free.