Governor Kathy Hochul has proposed a policy in the state’s budget to eliminate state income tax on up to $25,000 of tipped income — helping Dashers and other tipped workers keep more of what they earn as everyday costs remain high.
In a joint letter to state leaders, DoorDash joined others in highlighting the importance of this policy to address affordability challenges and put more money directly into the pockets of hardworking New Yorkers:
“The No Tax on Tips proposal offers meaningful tax relief by allowing workers to retain more of their hard-earned money at a time when rents, groceries, childcare, transportation, and general living expenses burden too many New Yorkers,” wrote the nine signers.
Under the new federal No Tax on Tips law, Dashers throughout the country have already saved hundreds of millions of dollars. Extending No Tax on Tips to the state level would offer significant economic relief to Dashers across the state when they need it most.
Lynne, a New York Dasher from Cortland, shared: “I would have owed money back if I had been taxed on my tips [at the federal level], but I ended up getting money back between that and my other job.”
The letter is backed by a diverse group of stakeholders, including the NYC Hospitality Alliance, NYS Latino Restaurant, Bar, and Lounge Association, Business Council of New York, Brooklyn Chamber of Commerce, Bronx Chamber of Commerce, CenterState CEO, and DoorDash – reflecting broad support across industries and communities.
“Dashers and tipped workers play an essential role in communities across New York, and this proposal is a simple, effective way to help them keep more of what they earn,” said Alex Spyropoulos, Head of Policy for New York at DoorDash. “By building on federal progress, New York can deliver real relief for workers and support greater economic stability across the state.”
DoorDash urges lawmakers to include the No Tax on Tips proposal in the final state budget.
