Blakeman proposes eliminating income tax for New Yorkers on first $50,000

Could your first $50,000 be tax-free?

Your paycheck could look different under a new proposal in New York. Bruce Blakeman wants to remove state income tax from the first $50,000 earned by single filers each year.

The Republican gubernatorial nominee says the plan would also create a larger tax-free amount for married couples. It remains a proposal, not an enacted change to state law right now.

Single filers would get a $50,000 break

Blakeman’s proposal would set the first $50,000 of income earned by a single filer at a 0% New York State income tax rate under his plan for that income annually.

That does not mean every part of a tax bill disappears. The proposal addresses state income tax, while separate local taxes can still apply to eligible residents there as well.

Married couples could get $100,000 exempted

For married couples filing jointly, Blakeman proposes making the first $100,000 of income exempt from New York State income tax. The proposal targets qualifying joint filers under those terms specifically.

Couples earning more than $100,000 would still pay state income tax on income above that amount. The proposal would not make earnings tax-free; income above it would remain taxable separately.

A lower rate would follow the exemption

Blakeman’s plan also calls for a 4% rate on income from $100,000 through $500,000 for married couples, according to the proposal details released. It would apply to joint filers too.

That would change the tax treatment for earnings above the new tax-free threshold. The proposal describes this as an overhaul of New York’s income tax structure for all taxpayers generally.

Fun fact: New York first enacted a personal income tax in 1919, making it one of the earliest states to impose one.

The $250,000 example shows the difference

For a married couple earning $250,000, reporting on the proposal says the reported state income tax bill would fall from about $13,000 to roughly $6,000 annually under Blakeman’s plan statewide.

Those figures are proposal-based estimates, not guaranteed savings. Actual tax bills can potentially vary with taxable income, deductions, credits, filing details and later changes in state law under current law.

Single earners would also see a change

A single filer earning $100,000 is another example used in coverage of the plan. Reports say the state income tax bill would drop to roughly $2,000 under the proposal itself.

That example assumes the proposal’s new rules are fully adopted. It should not be read as a personal tax calculation because individual returns can include deductions, credits and other adjustments.

New York already uses progressive tax rates

New York uses a progressive state income tax system, so tax rates generally rise as taxable income moves through higher brackets. The structure has multiple rates across its current brackets.

For 2026, state rates range from 3.9% at the lowest bracket to 10.9% at the highest. Different brackets apply to different income levels and filing statuses under the 2026 rules.

State tax is not the whole tax bill

New York State income tax is separate from certain local income taxes. Residents of New York City can owe a city personal income tax as well at the city level.

Yonkers residents can also face a local income tax surcharge. Blakeman’s proposal is aimed at the state income tax, so local liabilities would remain a separate question where applicable locally.

The plan carries a major price tag

Blakeman’s office estimates the proposal would reduce state tax revenue by about $35 billion. That figure reflects the broad size of the package for the state under the proposal’s estimate.

Blakeman points to economic growth and reducing government waste as ways to address lost revenue. The available reporting does not provide a detailed dollar by dollar offset plan publicly yet.

Blakeman says 45 counties could be affected

Blakeman has said average annual income for married couples is below $100,000 in 45 of New York’s 62 counties. His campaign uses that figure to describe reach under that measure.

That claim does not mean every household in those counties would owe zero state income tax. Individual income, filing status and other tax rules still matter for households living there.

New York ranks high on per person taxes

A recent nonpartisan New York fiscal analysis found state and local governments collected more taxes per person than any other state in fiscal year 2024 for that fiscal year alone.

The analysis said collections were 71% above the national average and 22% higher than second-place California. Those figures cover combined state and local taxes rather than income tax collections alone.

Little-known fact: New York’s personal income tax collected more than $61 billion in fiscal year 2024-25, making it the state’s largest revenue source.

State and local spending is another factor

The same analysis ranked New York second nationally in state and local government spending per person for fiscal year 2024, behind only Alaska among the states included in the comparison.

That spending figure includes government activity beyond income taxes. It provides broader fiscal context for proposals that would change how much revenue the state collects each year beyond tax collections.

For another look at how tax changes could affect Americans, check out why millions of Americans receive a $43B IRS tax boost.

The proposal is now part of the governor race

Blakeman is the Republican nominee for New York governor, while Kathy Hochul is the Democratic nominee. The state has certified their candidacies for the statewide general election scheduled Nov. 3.

The 2026 general election is scheduled for Nov. 3. Until a tax proposal becomes law, New York’s tax rules remain in effect, meaning the proposal cannot change tax bills yet.

For another look at how tax proposals could affect taxpayers, learn how Trump tax proposal could reshape refunds in $3B claim.

How could this tax proposal affect New Yorkers if it becomes law? Share your thoughts in the comments and leave a like if you found this update useful.

This slideshow was made with AI assistance and human editing.

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