Here's what the newly passed $268B NYS budget may mean for you

ALBANY — New York State lawmakers this week approved a more than $268 billion budget for the 2026-27 fiscal year, touching on a wide range of activities and programs with the aim of making the state more affordable for residents.

Parents, children, subway riders, seniors, college students, utility ratepayers, nicotine pouch users, farmers and food servers are among those who could be impacted by the budget.

Gov. Kathy Hochul on Thursday signed the final spending bills, roughly eight weeks after the state’s April 1 budget deadline. The State Senate and Assembly approved the last measures late Wednesday night.

Here are some highlights of what the state budget might mean to you.

Income tax rates frozen

Hochul fended off any changes in the state’s income-tax rates, despite pressure from progressive Democrats and New York City Mayor Zohran Mamdani. In the end, Democrats who control the State Legislature agreed with Hochul: State income tax rates won’t increase.

Utility rebate checks

Full-time residents will receive a check in the mail between September and December under a new $1 billion utility tax rebate program, known as the Protecting Our Wallets Energy Rebate, or POWER, credit.

Married joint filers or surviving spouse filers with incomes up to $150,000 based on their 2024 tax returns would receive $200. Joint or surviving spouse filers earning between $150,000 and $300,000 would get a check of $150. All other filers earning up to $150,000 would receive $100. The rebate will reach an expected 8.2 million taxpayers.

No taxes on tips

If you’re a food server, bartender, cabdriver or other service worker, you will no longer have to pay taxes on up to $25,000 in tipped income per year, under a provision matching a Trump administration initiative. The state estimates about 340,000 New Yorkers have tip-earning jobs and could benefit.

More childcare, pre-K seats

Hochul’s signature proposal to expand access to childcare and prekindergarten made it into the final agreement, sending funding to increase seats statewide. School districts will be required to provide prekindergarten programming to all eligible 4-year-olds by the 2028-29 school year.

Tax credit boost for parents, caregivers

About 230,000 parents and caregivers on average could see an additional $576 because of enhancements made to the state Child and Dependent Care Credit. And parents with children ages 4 to 16 also could see an increase through the state child tax credit, passed in last year’s budget, which will go from $330 up to $500 per child.

No tuition hike, higher education help

For students at a State University of New York four-year college, tuition is frozen.

Through what’s called the Opportunity Promise scholarship, the state will waive tuition at public colleges and universities for residents aged 25 to 55 pursuing first-time associate degrees in high-demand fields including nursing, cybersecurity, teaching in shortage areas, engineering and green and renewable energy.

Also existing-degree holders could go for free if pursuing a nursing diploma.

Pension sweeteners for public workers

A $557 million pension package will increase benefits for public workers hired on or after April 1, 2012, into the sixth pension tier.

Teachers can retire at age 58 with 30 years of service, instead of age 63.

Other state and local public workers will see a decrease in their contribution rates, with 3% being the lowest and 5.75% being the highest.

Police and firefighters can count 25% of their overtime toward their pensions, up from 15%.

And the cap on overtime pay will increase from about $22,000 to $30,000 per year — largely benefiting state and local correction officers and county deputy sheriffs.

Bigger taxes on nicotine pouches

This fairly new product is having a sales boom, with tobacco insiders saying more than 1 billion units sold last year. But lawmakers are raising the price to encourage quitting, applying the state’s 75% excise tax on cigarettes to nicotine pouches. This means a $5 can of Zyn pouches could have a $3.75 excise tax added on.

No property taxes for disabled vets

Disabled veterans wouldn’t have to pay any property taxes in localities that opt into an exemption in the budget. The 100% property tax exemption would apply to the primary residence of veterans who are permanently and totally disabled due to their military service.

More police and barriers in the subway

Riders could see an increase in police presence on subway platforms and trains through an extra $77 million included in the budget aimed at boosting safety.

Rent freeze for some seniors

Seniors who live in rent-controlled apartments in the villages of Hempstead and Great Neck Plaza, City of Glen Cove and Town of North Hempstead (the four Long Island municipalities that participate in the low-income, senior program) could have their rents frozen for the year.

Tariff relief for farmers

If you are a livestock or dairy farmer and took a financial hit from President Donald Trump’s tariffs, you might get direct tariff aid payments. The budget includes $30 million for the payments, which also would apply to certain specialty crop growers and aquaculture.