New York benefits cliff
How much can you earn before a raise costs you in New York?
The short answer
In New York, a $1,000 raise at $116,000 can cut a family of 4's real take-home by $21,994 a year, because benefits fall away faster than the raise. Take-home recovers past $160,000, the safe exit.
Your benefits cliff
New York, household of 4. The filled line is your real take-home. The dashed line is wages alone.
A second cliff, only in New York
New York families can hit the cliff twice
Most states have a single steepest cliff. New York has a second one. Its Essential Plan keeps health coverage almost free up to 200% of the federal poverty line. Earn one step past that and a family of 4 moves to full marketplace premiums, cutting real take-home by about $6,362 a year at around $67,000.
That ceiling fell from 250% to 200% of the poverty line on 1 July 2026, so more New York families reach this second cliff now than did last month.
What you can earn before each benefit drops
For a family of 4 in New York. Each benefit falls away at a different income, and where several fall together is where the cliff bites.
Look at one benefit at a time
Every number comes from a government source
Rules checked Jul 7, 2026. See how CliffCheck knows the numbers
Questions people ask
- Can a raise really make you poorer in New York?
- Yes. For a family of 4 in New York, a $1,000 raise at $116,000 can cut real take-home by about $21,994 a year, because benefits fall away faster than the extra pay comes in.
- What is a benefits cliff?
- A benefits cliff is where a small raise triggers a large drop in benefits, so your total take-home goes down even though your pay went up. Several benefits can fall in the same narrow income band, which is what makes the drop so steep.
- What income clears the cliff in New York?
- For a family of 4 in New York, take-home passes its earlier level again at about $160,000 a year. That is the safe exit: earn past it and the raise pays off for good.
- Is New York's Essential Plan changing in July 2026?
- Yes. On 1 July 2026 the Essential Plan income ceiling fell from 250% to 200% of the federal poverty line. A family of 4 earning past that now hits a second cliff, losing about $6,362 a year at around $67,000. Every figure here is calculated from the rules, not estimated.
- Why does New York have a second benefits cliff?
- New York's Essential Plan keeps health coverage almost free up to 200% of the poverty line. Earn past that and a family of 4 pays full marketplace premiums, cutting real take-home by about $6,362 a year at around $67,000. That ceiling fell from 250% to 200% of the poverty line on 1 July 2026.
- Where do these New York numbers come from?
- Every figure is calculated from published government rules, SNAP from the USDA, Medicaid and the marketplace, HUD housing limits, and New York's own childcare and tax rules. Your inputs stay on your phone and are never sent anywhere.