New York governor considering raising corporate taxes, source says [View all]

Source: Reuters

November 14, 2025 6:17 PM EST Updated 11 hours ago


Nov 14 (Reuters) - New York Governor Kathy Hochul is considering increasing corporate taxes to close a potential budget shortfall amid federal cuts, but that no decision has been made, a source familiar with the matter said on Friday. "The state is on strong financial footing today but much of the budget outcome at the start of next year is going to be largely dependent on what the federal government does and we're watching that closely and trying to plan accordingly," the source said.

The source did not say what new tax rate was under consideration by Hochul. New York City Mayor-elect Zohran Mamdani has advocated to increase the top corporate rate from 7.25% to 11.5%.

The issue of affordability was at the center of Mamdani's campaign with him promising to freeze rent and raise taxes on the rich. A spokesperson for Mamdani's campaign did not immediately respond to a request for comment.

New York is facing a $34.3 billion budget shortfall through its 2029 fiscal year that begins April 1 and ends on March 31. Republican President Donald Trump, who endorsed former Democratic New York Governor Andrew Cuomo for mayor, has said he will likely not contribute federal funds to the city "other than the very minimum as required" as a result of Mamdani's election.

Read more: https://www.reuters.com/world/us/new-york-governor-considering-raising-corporate-taxes-source-says-2025-11-14/