New York State is ready to roll out two major one-time payments this fall. These payments are aimed at easing the burden on households struggling with rising costs and will be sent through checks.
Both payments will be automatic for eligible residents, and there will be no separate application required. These payments or checks are designed to hit mailboxes or bank accounts starting in late September 2025. The whole process may go on for a few weeks.
We’re putting money back where it belongs: In your pocket.
Inflation refund checks are on the way for over eight million New Yorkers.
Learn more: https://t.co/Au8hw80w2l pic.twitter.com/4RQPiXIACV
— Governor Kathy Hochul (@GovKathyHochul) October 20, 2025
The New York State Department of Taxation and Finance has introduced its first-ever inflation-refund program as a part of the 2025-26 state budget. The department will send out these one-time checks to residents who have filed a full-year resident return for 2023.
The amounts of these checks may vary by income and filing status:
- Single filers with a NY AGI of $ 75,000 or less receive $200.
- Single filers with AGI between $75,001 and $150,000 receive $150.
- Married couples filing jointly with AGI of up to $150,000 receive $400; those earning up to $300,000 get $300.
Distribution of the checks began at the end of September and will continue through October and November. The administration is expecting the checks to reach more than 8 million households.
More importantly, recipients do not need to apply. The plan for distribution of the check has confirmed that the Department will mail checks to the address on the most recent tax return filed.
Simultaneously, the state is also delivering additional relief via the STAR Program (School Tax Relief) for homeowners. Many eligible homeowners will receive payments or credits valued between $350- $1,500 under its 2025 rollout. The amount on the check will depend on property tax levels, location and filing status.
As described, this check is only for the homeowners, and to qualify for it, recipients must own their primary residence in New York. Homeowners must also meet income thresholds (for Enhanced STAR, typically age 65+ with income under ~$98,700; for Basic STAR, income under ~$250,000) and must be registered with the STAR program.
Governor Kathy Hochul has said that these payments are being made so that the surplus tax revenue can be returned to New Yorkers who are distraught due to elevated inflation. The rise in sales tax and living costs has greatly affected the city-state, and the aim is to help the residents as much as possible.
The inflation refund alone represents roughly $2 billion in direct state‐funded relief.
The checks will definitely bring timely relief, though some analysts caution that they are short-term and residents must not bring themselves to rely on such payments often. Experts have also cautioned that these payments and checks will not address broader structural issues such as high housing, utility and insurance costs.
Residents must remember that these checks are being mailed over a period of weeks and not in a single wave. Therefore, there may be instances where neighbours may receive differing amounts at different times.
Residents must remember that
- They must confirm that they filed their 2023 resident tax return (Form IT-201) if they are expecting the inflation refund.
- One must update their mailing address with the Tax Department or file a 2024 return if they have moved, so that their check is sent to the right location.
- Homeowners should confirm their STAR registration is current and their property tax bill reflects the relief amount.
- Watch for official checks arriving in standard state envelopes. Also, everyone, beware of scams; the Tax Department will never ask for additional personal or bank details if you qualify.
If you’re a New York resident who filed the appropriate tax returns and also meet the income or homeowner thresholds, you could receive two separate benefits this fall.
