In her 2025 State of the State address, Gov. Kathy Hochul proposed an expansion of New York’s child tax credit. Parents would receive an annual tax credit of up to $1,000 per child under age four and up to $500 per child from four through age16. Don Pollard/Office of Governor Kathy Hochul

ALBANY, New York — Gov. Kathy Hochul wants to cut state income taxes by $1 billion over the next two years — part of an agenda aimed at combating voters’ economic concerns that helped deliver President-elect Donald Trump’s victory. The Democratic governor is also trying to improve her own political standing ahead of her 2026 reelection.

Gov. Kathy Hochul used her State of the State speech to focus on affordability and crime, vowing to place a police officer on every overnight subway train.

Kathy Hochul (D-NY) is trying to build the trust of working class voters within her state with a tax cut for joint filers earning less than $320,000. Hochul announced the plan and the rest of her agenda during her State of the State address on Tuesday.

Gov. Kathy Hochul proposed cutting income taxes by up to 5% in a State of the State speech focused largely on taming New York's high living costs.