New York Wall Street bonuses increased last year but fell significantly short of projections made by city and state officials for their 2026 budgets, according to a new report from State Comptroller Thomas DiNapoli. The shortfall could create financial challenges for upcoming fiscal plans.

The total amount of bonuses paid to executives in New York's securities sector rose by 9% from 2024 to $49.2 billion in 2025. The average year-end payout reached $246,900, marking a 6% increase. This growth coincided with a surge in industry profits, which jumped over 30% to $65.1 billion, driven by strong trading, underwriting, and asset management fees.

Despite these positive figures, the actual bonus growth of 9% was considerably lower than official forecasts. Mayor Mamdani’s proposed $127 billion city budget had projected a 15.1% increase in securities-industry bonuses, while Governor Hochul’s office had anticipated an even more optimistic 25.9% growth for 2025.

Comptroller DiNapoli's report estimates that these bonuses are projected to generate an additional $199 million in state income tax revenue and $91 million for New York City compared to the previous year. However, the gap between actual and projected bonus growth means tax revenue from these payouts is likely to fall below initial expectations for the current fiscal year. This could leave Governor Hochul’s proposed $260 billion state budget hundreds of millions of dollars short and Mayor Mamdani’s city budget tens of millions in the red, potentially requiring adjustments to budget plans or the exploration of new revenue streams.

Mayor Mamdani, who is seeking to close a reported $5.4 billion budget gap before the city's new fiscal year begins in July, has advocated for new financial measures, including proposals for a wealth tax, increased corporate levies, and higher property taxes. Governor Hochul, on the other hand, has publicly committed to not raising income taxes this year, though she has previously urged wealthy individuals who left the state to return and contribute to its tax base.

DiNapoli underscored the vital economic contributions of the financial sector, stating, "When Wall Street does well, it’s good for our state and city budgets, which are reliant on the industry’s significant tax contributions." The securities industry generated $22 billion for the state and $7 billion for New York City in income tax collections during the 2024 fiscal year. It accounted for 20.2% of the city’s economic activity in 2024 and contributed 19.4% of state tax collections in fiscal year 2024-25 and 8.4% of city tax revenue in fiscal year 2025.

While New York remains the country's primary financial hub, DiNapoli noted a slight decline in the city's share of nationwide finance jobs, which is just under 18%, with 198,200 people directly employed. This is down from a 30-year high of 201,500 the previous year. Average annual salaries in finance, including bonuses, rose 7.3% to $505,677 in 2024, nearly five times the average in the rest of the city's private sector. DiNapoli cautioned about slower job growth and geopolitical conflicts posing risks for the financial sector and broader economic markets, while reiterating the industry's continued importance to the state's economy.