Governor Hochul’s first State of the State proposal would send $500 to families and $300 to individuals, using surplus sales tax revenue driven by inflation.
As part of her 2025 State of the State agenda, Governor Kathy Hochul has proposed an Inflation Refund plan aimed at easing the financial strain caused by rising living costs. The initiative, unveiled today, would deliver $3 billion in direct payments to 8.6 million New Yorkers. Families earning up to $300,000 would receive $500, while single filers making up to $150,000 would get $300.
The payments, funded by excess sales tax revenues generated by inflation, mark New York’s first-ever initiative of this kind. If approved by the Legislature, New Yorkers who filed recent tax returns will receive payments starting in Fall 2025.
Who will receive the inflation refund?
- Families: Joint filers earning less than $300,000 will receive $500.
- Individuals: Single taxpayers earning less than $150,000 will receive $300.
The refund will benefit New Yorkers statewide, with the largest number of recipients in:
| Region | Estimated Recipients |
|---|---|
| New York City | 3,645,000 |
| Long Island | 1,344,000 |
| Hudson Valley | 986,000 |
| Western New York | 620,000 |
Governor Hochul emphasized the importance of the proposal, stating, “Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we’re returning that cash back to middle class families.”
Ongoing commitment to affordability
This initiative is part of Governor Hochul’s broader “Money in Your Pockets” agenda. Since taking office, her administration has delivered over $5.5 billion in supplemental payments and tax relief, including:
- $4 billion in middle-class tax cuts.
- $600 million in child tax credit payments.
- $600 million in gas tax relief.
If passed, the Inflation Refund will offer crucial financial relief to millions of New Yorkers grappling with rising costs.
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