New York taxpayers could see the largest middle-class tax cut in state history under a new proposal from Senate Republicans.
State Sen. Tom O’Mara joined his Senate Republican colleagues Tuesday to unveil the “Keep What You’ve Earned” package, a sweeping plan aimed at cutting taxes and easing affordability pressures across New York.
O’Mara said the proposal responds to growing frustration among residents facing high state and local taxes.
“It’s time to cut taxes. It’s time to stop making New York’s state and local taxpayers foot the bill for an out-of-control state government,” O’Mara said. “They’re sick and tired of all talk, no action on affordability and they’re demanding common sense, fairness, and responsibility.”
The plan builds on the Senate GOP’s broader “Save New York” agenda for 2026, which focuses on affordability, public safety, and long-term economic stability.
At the center of the proposal is legislation co-sponsored by O’Mara known as the “Taxpayer Rescue Act.” The bill would deliver $37 billion in state income tax relief over 10 years, which Senate Republicans call the largest middle-class tax cut in New York State history.
The proposal would eliminate state personal income tax on the first $50,000 of income for single filers and the first $100,000 for joint filers. Once fully phased in, joint filers could save up to $6,000. The plan would also lower the income tax rate to 4% for single filers earning up to $250,000 and for married couples earning up to $500,000.
O’Mara also pointed to New York’s poor national standing on taxes, noting that the state ranks last in the Tax Foundation’s Tax Competitiveness Index for the fifth straight year.
“For the fifth straight year, New York ranks at the bottom of a sad heap,” he said.
The “Keep What You’ve Earned” package includes several other proposals, including a permanent 2% cap on annual state spending growth and tougher voting requirements to impose or extend taxes at both the state and local levels.
Additional measures would reduce taxes on small businesses and farms, eliminate state income tax on overtime wages and tips, and provide property tax relief for homeowners. The plan also calls for a temporary freeze on real property taxes and a state takeover of local Medicaid costs for eligible local governments.
O’Mara criticized Democratic leadership in Albany, arguing that current policies have failed to address rising costs and taxpayer concerns.
“We need to save New York by restoring the right priorities,” O’Mara said, adding that families, workers, and businesses deserve a more affordable and responsible future.
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