{"id":3989,"date":"2026-03-30T14:14:59","date_gmt":"2026-03-30T18:14:59","guid":{"rendered":"https:\/\/nycnewsnetwork.com\/nycpolitics\/no-tax-on-tips-nyc-workers-could-win-big-but-at-what-cost\/"},"modified":"2026-03-30T14:14:59","modified_gmt":"2026-03-30T18:14:59","slug":"no-tax-on-tips-nyc-workers-could-win-big-but-at-what-cost","status":"publish","type":"post","link":"https:\/\/nycnewsnetwork.com\/nycpolitics\/no-tax-on-tips-nyc-workers-could-win-big-but-at-what-cost\/","title":{"rendered":"No Tax on Tips: NYC Workers Could Win Big, But At What Cost?"},"content":{"rendered":"<section class=\"text-token-text-primary w-full focus:outline-none [--shadow-height:45px] has-data-writing-block:pointer-events-none has-data-writing-block:-mt-(--shadow-height) has-data-writing-block:pt-(--shadow-height) [&amp;:has([data-writing-block])&gt;*]:pointer-events-auto scroll-mt-(--header-height)\" dir=\"auto\" data-turn-id=\"3710cfb3-2a4a-4d53-aa96-675f8259a59c\" data-testid=\"conversation-turn-79\" data-scroll-anchor=\"false\" data-turn=\"user\"><\/section>\n<section class=\"text-token-text-primary w-full focus:outline-none [--shadow-height:45px] has-data-writing-block:pointer-events-none has-data-writing-block:-mt-(--shadow-height) has-data-writing-block:pt-(--shadow-height) [&amp;:has([data-writing-block])&gt;*]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]\" dir=\"auto\" data-turn-id=\"request-69c68b03-381c-8324-a29d-49353e3c1c61-3\" data-testid=\"conversation-turn-80\" data-scroll-anchor=\"true\" data-turn=\"assistant\">\n<div class=\"text-base my-auto mx-auto pb-10 [--thread-content-margin:var(--thread-content-margin-xs,calc(var(--spacing)*4))] @w-sm\/main:[--thread-content-margin:var(--thread-content-margin-sm,calc(var(--spacing)*6))] @w-lg\/main:[--thread-content-margin:var(--thread-content-margin-lg,calc(var(--spacing)*16))] px-(--thread-content-margin)\">\n<div class=\"[--thread-content-max-width:40rem] @w-lg\/main:[--thread-content-max-width:48rem] mx-auto max-w-(--thread-content-max-width) flex-1 group\/turn-messages focus-visible:outline-hidden relative flex w-full min-w-0 flex-col agent-turn\">\n<div class=\"flex max-w-full flex-col gap-4 grow\">\n<div class=\"min-h-8 text-message relative flex w-full flex-col items-end gap-2 text-start break-words whitespace-normal outline-none keyboard-focused:focus-ring [.text-message+&amp;]:mt-1\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"a371df49-8d0b-4f98-9213-e9c7aedfb84c\" data-message-model-slug=\"gpt-5-3\" data-turn-start-message=\"true\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden\">\n<div class=\"markdown prose dark:prose-invert w-full wrap-break-word dark markdown-new-styling\">\n<p data-start=\"0\" data-end=\"281\" data-is-last-node=\"\" data-is-only-node=\"\">For many New Yorkers hustling through long shifts, tips are not extra cash, they are how the bills get paid. Now, the push for \u2018No Tax on Tips\u2019 is turning heads across the city, promising relief for workers while raising big questions about where the money will come from next.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<h2 data-section-id=\"1q1mrdx\" data-start=\"494\" data-end=\"546\"><span role=\"text\">Relief or Risk for NYC Workers?<\/span><\/h2>\n<p data-start=\"548\" data-end=\"772\">For thousands of New Yorkers grinding through long shifts in restaurants, bars, and delivery apps, tips are not extra money, they are survival. So when talk of \u2018No Tax on Tips\u2019 started gaining traction, it hit different.<\/p>\n<p data-start=\"774\" data-end=\"1041\">On the surface, it sounds like a win. More money in workers\u2019 pockets. Less taken out by the government. But behind the headlines, this proposal is turning into a serious political fight that could reshape how New York funds everything from housing to public services.<\/p>\n<p data-start=\"1043\" data-end=\"1190\">And now, it is putting <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Kathy Hochul<\/span><\/span> and <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Zohran Mamdani<\/span><\/span> on very different sides of the conversation.<\/p>\n<h2 data-section-id=\"12xspci\" data-start=\"1197\" data-end=\"1240\"><strong><span role=\"text\">What \u2018No Tax on Tips\u2019 Actually Means<\/span><\/strong><\/h2>\n<p data-start=\"1242\" data-end=\"1326\">The idea is simple. Workers would no longer pay certain taxes on the tips they earn.<\/p>\n<p data-start=\"1328\" data-end=\"1339\">That means:<\/p>\n<ul data-start=\"1340\" data-end=\"1496\">\n<li data-section-id=\"dooe70\" data-start=\"1340\" data-end=\"1390\">Restaurant servers keep more of what they make<\/li>\n<li data-section-id=\"1rj5kjz\" data-start=\"1391\" data-end=\"1436\">Delivery workers see bigger take-home pay<\/li>\n<li data-section-id=\"bib25x\" data-start=\"1437\" data-end=\"1496\">Service industry workers get immediate financial relief<\/li>\n<\/ul>\n<p data-start=\"1498\" data-end=\"1643\">The concept has roots tied to messaging from <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Donald Trump<\/span><\/span>, which is now making its way into New York\u2019s political debate.<\/p>\n<p data-start=\"1645\" data-end=\"1714\">Supporters say it is long overdue. Critics say it is not that simple.<\/p>\n<h2 data-section-id=\"1ajepu6\" data-start=\"1721\" data-end=\"1761\"><strong><span role=\"text\">Why Albany Is Even Considering It<\/span><\/strong><\/h2>\n<p data-start=\"1763\" data-end=\"1998\">Governor <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Kathy Hochul<\/span><\/span> has been leaning heavily into affordability messaging. With rising rent, food costs, and everyday expenses hitting New Yorkers hard, any policy that sounds like relief gets attention fast.<\/p>\n<p data-start=\"2000\" data-end=\"2160\">Attribution: According to state-level discussions and budget framing, Hochul has shown openness to tax relief strategies that avoid raising taxes elsewhere.<\/p>\n<p data-start=\"2162\" data-end=\"2212\">For her, \u2018No Tax on Tips\u2019 fits that narrative:<\/p>\n<ul data-start=\"2213\" data-end=\"2310\">\n<li data-section-id=\"1wirmct\" data-start=\"2213\" data-end=\"2246\">Helps working-class residents<\/li>\n<li data-section-id=\"1emjgjp\" data-start=\"2247\" data-end=\"2273\">Avoids broad tax hikes<\/li>\n<li data-section-id=\"3xbgs7\" data-start=\"2274\" data-end=\"2310\">Sends a strong political message<\/li>\n<\/ul>\n<p data-start=\"2312\" data-end=\"2352\">But that approach comes with trade-offs.<\/p>\n<h2 data-section-id=\"ag3irl\" data-start=\"2359\" data-end=\"2403\"><strong><span role=\"text\">The Money Problem: NYC Could Lose Big<\/span><\/strong><\/h2>\n<p data-start=\"2405\" data-end=\"2435\">Here is where things get real.<\/p>\n<p data-start=\"2437\" data-end=\"2536\">Cutting taxes on tips does not just help workers. It also means the government collects less money.<\/p>\n<p data-start=\"2538\" data-end=\"2731\">Attribution: Policy estimates suggest the city could lose hundreds of millions in revenue, with figures around $200M+ annually being discussed depending on how the policy is structured.<\/p>\n<p data-start=\"2733\" data-end=\"2764\">That money normally helps fund:<\/p>\n<ul data-start=\"2765\" data-end=\"2842\">\n<li data-section-id=\"4prm58\" data-start=\"2765\" data-end=\"2796\">Affordable housing programs<\/li>\n<li data-section-id=\"1syusmv\" data-start=\"2797\" data-end=\"2822\">Public transportation<\/li>\n<li data-section-id=\"1242e59\" data-start=\"2823\" data-end=\"2842\">Social services<\/li>\n<\/ul>\n<p data-start=\"2844\" data-end=\"2915\">So the question becomes:<br data-start=\"2868\" data-end=\"2871\" \/>If workers keep more, who fills the gap?<\/p>\n<h2 data-section-id=\"1dlagp1\" data-start=\"2922\" data-end=\"2948\"><strong><span role=\"text\">Mamdani Pushes Back<\/span><\/strong><\/h2>\n<p data-start=\"2950\" data-end=\"3011\">This is where <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Zohran Mamdani<\/span><\/span> comes in.<\/p>\n<p data-start=\"3013\" data-end=\"3096\">Mamdani has been vocal about a very different vision for New York. His focus is on:<\/p>\n<ul data-start=\"3097\" data-end=\"3211\">\n<li data-section-id=\"m2xq6w\" data-start=\"3097\" data-end=\"3129\">Raising taxes on the wealthy<\/li>\n<li data-section-id=\"s8or7s\" data-start=\"3130\" data-end=\"3159\">Expanding public programs<\/li>\n<li data-section-id=\"1pcf3tj\" data-start=\"3160\" data-end=\"3211\">Investing heavily in housing and infrastructure<\/li>\n<\/ul>\n<p data-start=\"3213\" data-end=\"3329\">A policy like \u2018No Tax on Tips\u2019 moves in the opposite direction. Instead of bringing in more revenue, it cuts it.<\/p>\n<p data-start=\"3331\" data-end=\"3493\">Attribution: Based on his broader policy stance, Mamdani\u2019s approach emphasizes generating funding for large-scale city needs rather than reducing tax streams.<\/p>\n<p data-start=\"3495\" data-end=\"3523\">That creates a clear divide:<\/p>\n<ul data-start=\"3524\" data-end=\"3615\">\n<li data-section-id=\"6yvne8\" data-start=\"3524\" data-end=\"3566\">Hochul \u2192 tax relief, cautious spending<\/li>\n<li data-section-id=\"1evpk60\" data-start=\"3567\" data-end=\"3615\">Mamdani \u2192 higher revenue, bigger investments<\/li>\n<\/ul>\n<h2 data-section-id=\"1uek0xn\" data-start=\"3622\" data-end=\"3658\"><strong><span role=\"text\">Why This Debate Hits NYC Hard<\/span><\/strong><\/h2>\n<p data-start=\"3660\" data-end=\"3734\">This is not just a political argument. It is personal for a lot of people.<\/p>\n<p data-start=\"3736\" data-end=\"3810\">In neighborhoods across the city, especially in working-class communities:<\/p>\n<ul data-start=\"3811\" data-end=\"3902\">\n<li data-section-id=\"1k6zlqq\" data-start=\"3811\" data-end=\"3849\">Tips make up a huge part of income<\/li>\n<li data-section-id=\"kap7d1\" data-start=\"3850\" data-end=\"3871\">Rent keeps rising<\/li>\n<li data-section-id=\"yem35y\" data-start=\"3872\" data-end=\"3902\">Costs are not slowing down<\/li>\n<\/ul>\n<p data-start=\"3904\" data-end=\"3974\">So for many workers, \u2018No Tax on Tips\u2019 feels like immediate relief.<\/p>\n<p data-start=\"3976\" data-end=\"4029\">But at the same time, those same communities rely on:<\/p>\n<ul data-start=\"4030\" data-end=\"4100\">\n<li data-section-id=\"dov2kn\" data-start=\"4030\" data-end=\"4056\">Public housing support<\/li>\n<li data-section-id=\"1m650mj\" data-start=\"4057\" data-end=\"4075\">Transit access<\/li>\n<li data-section-id=\"z3fwes\" data-start=\"4076\" data-end=\"4100\">City-funded services<\/li>\n<\/ul>\n<p data-start=\"4102\" data-end=\"4156\">If funding drops, those systems could feel the impact.<\/p>\n<h2 data-section-id=\"15o5r9a\" data-start=\"4163\" data-end=\"4211\"><span role=\"text\">Staten Island Angle: Who Really Benefits?<\/span><\/h2>\n<p data-start=\"4213\" data-end=\"4293\">If this policy moves forward, Staten Island could feel it in two different ways.<\/p>\n<h4 data-section-id=\"1t27mld\" data-start=\"4295\" data-end=\"4313\"><span role=\"text\">The Upside<\/span><\/h4>\n<ul data-start=\"4314\" data-end=\"4419\">\n<li data-section-id=\"1eht64e\" data-start=\"4314\" data-end=\"4361\">Service workers keep more of their earnings<\/li>\n<li data-section-id=\"1rojnla\" data-start=\"4362\" data-end=\"4419\">Hospitality and gig workers see real financial relief<\/li>\n<\/ul>\n<h4 data-section-id=\"1kwzdx7\" data-start=\"4421\" data-end=\"4442\"><span role=\"text\">The Trade-Off<\/span><\/h4>\n<ul data-start=\"4443\" data-end=\"4556\">\n<li data-section-id=\"11wlnrm\" data-start=\"4443\" data-end=\"4503\">Potential cuts or slowdowns in local development funding<\/li>\n<li data-section-id=\"12r05ad\" data-start=\"4504\" data-end=\"4556\">Pressure on services that depend on city budgets<\/li>\n<\/ul>\n<p data-start=\"4558\" data-end=\"4633\">For a borough that already feels overlooked at times, that balance matters.<\/p>\n<h2 data-section-id=\"1b6jk4v\" data-start=\"4640\" data-end=\"4672\"><strong><span role=\"text\">A Bigger Political Signal<\/span><\/strong><\/h2>\n<p data-start=\"4674\" data-end=\"4747\">What makes this story bigger than just taxes is where the idea came from.<\/p>\n<p data-start=\"4749\" data-end=\"4917\">The fact that a concept linked to <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Donald Trump<\/span><\/span> is now part of New York\u2019s political conversation shows how complicated the current landscape is.<\/p>\n<p data-start=\"4919\" data-end=\"5018\">It is not just left vs right anymore.<br data-start=\"4956\" data-end=\"4959\" \/>It is about messaging, survival, and who gets relief first.<\/p>\n<h2 data-section-id=\"1sh1eox\" data-start=\"5025\" data-end=\"5066\"><strong><span role=\"text\">Community Reaction: Mixed and Loud<\/span><\/strong><\/h2>\n<p data-start=\"5068\" data-end=\"5100\">Across NYC, reactions are split.<\/p>\n<p data-start=\"5102\" data-end=\"5126\">Some workers are all in:<\/p>\n<ul data-start=\"5127\" data-end=\"5185\">\n<li data-section-id=\"1kbicw9\" data-start=\"5127\" data-end=\"5157\">\u201cLet us keep what we earn\u201d<\/li>\n<li data-section-id=\"37orn5\" data-start=\"5158\" data-end=\"5185\">\u201cWe already struggling\u201d<\/li>\n<\/ul>\n<p data-start=\"5187\" data-end=\"5212\">Others are more cautious:<\/p>\n<ul data-start=\"5213\" data-end=\"5281\">\n<li data-section-id=\"iydgc7\" data-start=\"5213\" data-end=\"5243\">\u201cWhat happens to <a href=\"https:\/\/www.nyc.gov\/site\/hpd\/index.page\">housing<\/a>?\u201d<\/li>\n<li data-section-id=\"1r50f5p\" data-start=\"5244\" data-end=\"5281\">\u201cWhere does the money come from?\u201d<\/li>\n<\/ul>\n<p data-start=\"5283\" data-end=\"5355\">That tension is only going to grow as the policy gets closer to reality.<\/p>\n<h3 data-section-id=\"xc98bd\" data-start=\"5362\" data-end=\"5386\"><strong><span role=\"text\">What Happens Next<\/span><\/strong><\/h3>\n<p data-start=\"5388\" data-end=\"5500\">Right now, \u2018No Tax on Tips\u2019 is part of a larger budget and policy conversation happening at the state level.<\/p>\n<p data-start=\"5502\" data-end=\"5533\">Nothing is fully locked in yet.<\/p>\n<p data-start=\"5535\" data-end=\"5561\">But what is clear is this:<\/p>\n<ul data-start=\"5562\" data-end=\"5691\">\n<li data-section-id=\"1wndklx\" data-start=\"5562\" data-end=\"5595\">The idea is gaining attention<\/li>\n<li data-section-id=\"7agg3v\" data-start=\"5596\" data-end=\"5628\">The <a href=\"https:\/\/nycnewsnetwork.com\/nycpolitics\/\">political<\/a> divide is real<\/li>\n<li data-section-id=\"11xwamh\" data-start=\"5629\" data-end=\"5691\">And the outcome will directly impact how NYC moves forward<\/li>\n<\/ul>\n<div id=\"attachment_5467\" style=\"width: 622px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5467\" class=\"size-full wp-image-5467\" src=\"https:\/\/nycnewsnetwork.com\/wp-content\/uploads\/2026\/03\/No-Tax-on-Tips-2.jpg\" alt=\"No Tax on Tips 2\" width=\"612\" height=\"405\" \/><p id=\"caption-attachment-5467\" class=\"wp-caption-text\">Photo: iStock<\/p><\/div>\n<h2 data-section-id=\"12dsilg\" data-start=\"5698\" data-end=\"5716\"><span role=\"text\">Bottom Line<\/span><\/h2>\n<p data-start=\"5718\" data-end=\"5824\">\u2018No Tax on Tips\u2019 sounds like a simple win.<br data-start=\"5764\" data-end=\"5767\" \/>But in a city like New York, nothing is ever that simple.<\/p>\n<p data-start=\"5826\" data-end=\"5844\">It is a trade-off:<\/p>\n<ul data-start=\"5845\" data-end=\"5926\">\n<li data-section-id=\"1kiyndi\" data-start=\"5845\" data-end=\"5877\">Immediate relief for workers<\/li>\n<li data-section-id=\"cw8fey\" data-start=\"5878\" data-end=\"5926\">Potential long-term impact on public funding<\/li>\n<\/ul>\n<p data-start=\"5928\" data-end=\"6081\">And as leaders like <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Kathy Hochul<\/span><\/span> and <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">Zohran Mamdani<\/span><\/span> continue to clash over direction, one thing is clear:<\/p>\n<p data-start=\"6083\" data-end=\"6168\">This is not just about <a href=\"https:\/\/www.nyc.gov\/site\/dca\/consumers\/get-tips.page\">tips<\/a>.<br data-start=\"6111\" data-end=\"6114\" \/>It is about the future of how New York pays its bills.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For many New Yorkers hustling through long shifts, tips are not extra cash, they are how the bills get paid. Now, the push for \u2018No Tax on Tips\u2019 is turning [&hellip;]<\/p>\n","protected":false},"author":5907,"featured_media":3990,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[22,64,137,3],"tags":[],"class_list":["post-3989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","category-homeowner-news","category-judicial","category-local-nyc-politics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No Tax on Tips: NYC Workers Could Win Big, But At What Cost? - NYC Political News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nycnewsnetwork.com\/nycpolitics\/no-tax-on-tips-nyc-workers-could-win-big-but-at-what-cost\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No Tax on Tips: NYC Workers Could Win Big, But At What Cost?\" \/>\n<meta property=\"og:description\" content=\"For many New Yorkers hustling through long shifts, tips are not extra cash, they are how the bills get paid. 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