New York Governor Kathy Hochul is considering a potential corporate tax increase as the state faces a multi-year $34.3 billion budget shortfall and uncertain federal support.
New York Governor Kathy Hochul is considering whether to raise corporate taxes as the state confronts a sizable budget gap intensified by expected federal funding cuts, a source reported on 14 November 2025.
While no proposal has been finalised, the consideration reflects mounting fiscal pressure.
Mayor-elect Zohran Mamdani has publicly pushed for a sharp increase in the top corporate tax rate from 7.25% to 11.5% as part of a broader strategy to bolster city revenues.
The state, meanwhile, is staring at a projected USD 34.3 billion shortfall through the 2029 fiscal year, which runs from 1 April to 31 March. Federal support is unlikely to grow under President Donald Trump, who has signalled he will provide only the minimum required assistance following Mamdani’s election.
