The State of New York is ready for its first-ever “inflation refund” initiative. Millions of New Yorkers will soon see some extra money in their bank accounts.
Governor Kathy Hochul recently made an announcement that would affect over eight million households. According to the governor, these households will receive one-time payments of $150 and $400, and this will start in mid-October 2025.
The refunds are designed to help residents cope with rising prices. These will be distributed automatically, and residents don’t need to apply separately.
Eligibility for these checks is based on 2023 state income tax returns. Those who have filed a New York State Resident Income Tax Return (Form IT-201) for 2023 will qualify for these checks. The resident should not have claimed themselves as a dependent and must meet certain income thresholds.
Based on filing status, checks are distributed. A rough estimate is given below:
Single filers or heads of household
$75,000 or less: $200
$75,001–$150,000: $150
Married filing jointly or qualified surviving spouse
$150,000 or less: $400
$150,001–$300,000: $300
Married filing separately
Same thresholds as single filers
New York Governor Kathy Hochul announced that inflation refund checks will be mailed to up to 8.2 million households in October and November. Single tax filers earning $75,000 will get $200. While married or joint tax filers making $150,000 will receive $400. To qualify,… pic.twitter.com/dR1Mxm3AF4
— Eyewitness News (@ABC7NY) May 18, 2025
The Department of Taxation and Finance will calculate these amounts automatically using the adjusted gross income from the 2023 return.
These refunds are part of the 2025–2026 state budget. The state has decided to return the surplus sales tax revenue to residents rather than letting it sit unused.
Hochul called this plan a direct way to put money “back into the pockets of hardworking New Yorkers. It is especially important at a time when inflation has eroded household budgets.
These refunds are one element of a broader affordability package. The package also includes expanded child tax credits, property tax relief, and universal free school meals.
Hardworking New Yorkers deserve a break. We’re going to put billions of dollars back in their pockets.
You read that right: Billions.
Today, I proposed New York’s first-ever Inflation Refund to help working families make ends meet. pic.twitter.com/2GgGT2cSsB
— Governor Kathy Hochul (@GovKathyHochul) December 9, 2024
The Department of Taxation and Finance will start mailing these checks in mid-October and continue into November. Its delivery will be staggered across the state.
There’s no fixed schedule for the delivery. There hasn’t been any set plan to distribute these by region either. Therefore, some households may receive their checks earlier than others.
These checks will be mailed directly, and recipients should ensure their address is current to avoid delays.
Residents are also urged to watch for envelopes from the tax department and avoid discarding them as junk mail.
There have been such relief efforts in the past, but they have required application. These, however, require no applications from recipients. If you qualify based on your 2023 tax filing, the payment will be issued automatically.
🗽 Governor Hochul’s Budget Announcement
First-of-its-kind initiative (inflation refund)
The Budget Proposal for the State of New York#IRS #InflationRefund #GiveItBack #PuttingMoneyBack #NYBudget2025— Rudy Watson (@1RudyWatson) May 20, 2025
The refund amounts may not cover large expenses. However, they can help offset grocery bills, utility costs, or other everyday necessities. For many recipients, the biggest relief may be the simplicity of the process. They will receive money without jumping through bureaucratic hoops.
Governor Hochul has emphasized that this is not a one-off gesture. It is a part of a sustained commitment to making New York more affordable. The refunds are being targeted toward middle- and lower-income households, and the state hopes to ensure the funds reach those feeling the greatest squeeze from inflation.
