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Categories Politics

Governor Kathy Hochul Slammed for Not Matching New York State Policy to Federal ‘No Tax on Tips’ Policy

December 27, 2025

Many states have matched the federal policy of ‘No Tax on Tips’ in order to let service workers who rely on income from tips keep more of their money, but not New York.

The amount of revenue that New York receives because of this is likely negligible, making it seem like Governor Kathy Hochul is doing this purely out of political spite.

Imagine being one of these workers and knowing that you are being denied a benefit that people in other states are enjoying and being told that you are not going to get it just because of where you live.

The New York Post reports:

Hochul hasn’t served up Trump’s ‘no tax on tips’ policy, ticking off NY restaurant workers

These Scrooges refuse to act on a hot tip.

Gov. Kathy Hochul and Democratic New York lawmakers haven’t extended President Trump’s “no tax on tips” policy to state income taxes — hitting bartenders and restaurant workers in the pocketbook all while preaching affordability.

The inaction galled Rion Gallagher, 30, a bartender at The Blasket, an Irish pub in Midtown, on Friday.

“Screw her,” Gallagher said about Hochul.

“If we weren’t taxed on our tips, we’d be able to save more, we’d enjoy life a little more, maybe we wouldn’t have to pick up that extra shift.”

The “no tax on tips” policy, along with a related deduction for overtime, was a key worker-friendly provision of Trump’s “One Big Beautiful Bill” narrowly passed by Republicans this year…

But while many states either proactively or automatically matched the cuts, several others held out against extending the deduction, including New York — to the dismay of service industry workers.

“It’s disgraceful. People live off of tips,” said Zoe Kalodimos, 30, a waitress at Embassy Diner in Bethpage, Long Island, who said she helps out at home as the eldest of five siblings.

Here are some Twitter/X reactions to the story:

How would it hurt the state of New York to allow these workers to keep a few more of their hard-earned dollars? It really wouldn’t, which makes this all the more frustrating.

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