Breaking Down Governor Hochul’s $5 Billion Tax Cuts For New York Families

On January 21, 2025, New York State Governor Kathy Hochul announced some highlights of the 2026 Fiscal Year Executive Budget.

The budget will include over $5 billion in tax cuts, credits, and refunds to New York families, along with major education and healthcare investments. In addition, the Empire State will be keeping $21 billion in reserves.

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According to the Governor's announcement, the Affordability Agenda will include:

• $3 billion to provide Inflation Refund checks to 8.6 million New Yorkers, including $500 for joint filers making less than $300,000 and $300 for single filers making less than $150,000
• $1 billion in middle-class tax cuts across five of the State’s nine tax brackets, cutting rates to their lowest level in nearly 70 years for New Yorkers who file jointly and earn up to $323,000 annually
• $825 million to expand the Child Tax Credit over two years, giving eligible parents $1,000 for kids under 4 years old and $500 for kids ages 4-16
• $340 million to provide free school breakfast and free school lunch for every student in New York
• Fighting for the full repeal of the State and Local Tax deduction, which costs New Yorkers up to $12 billion each year

A budget is more than just numbers on a page – it tells the story of who we are, what we value, and what we’re fighting for. And let me be clear: your family is my fight. This year’s budget will put money back in New Yorkers’ pockets and make our streets and subways safer. Working together with my partners in the Legislature, we can get this done and make New York the best place in the

country to raise a family. - New York State Governor Kathy Hochul

Another part of the budget announcement was a statewide proposal that will impose bell-to-bell restrictions on electronic device use in the classroom for kindergarten through 12th-grade students in New York State, along with more investments in education and improvements to the Foundation Aid formula.

For the complete announcement including other plans for the budget, view the video below, provided by Governor Kathy Hochul via YouTube.

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