More than 8 million New Yorkers will begin receiving direct payments of up to $400 in fall 2025 as part of the state’s first-ever inflation refund program. The payments are designed to return excess sales tax revenue to residents struggling with rising costs.
Governor Kathy Hochul signed the initiative into law on May 9, 2025, as part of New York’s FY 2026 state budget, which includes sweeping economic relief measures.
Who qualifies for the inflation refund?
Eligibility is based on income reported in 2023 state tax returns. To qualify:
- You must have filed Form IT-201 (New York State Resident Income Tax Return).
- Your 2023 income must fall within specified thresholds.
- You must not have been claimed as a dependent on another return.
Refund amounts by income and filing status
| Filing Status | NY AGI (2023) | Refund Amount |
|---|---|---|
| Single / Head of Household | $75,000 or less | $200 |
| $75,001 – $150,000 | $150 | |
| Married Filing Jointly | $150,000 or less | $400 |
| $150,001 – $300,000 | $300 | |
| Married Filing Separately | $75,000 or less | $200 |
| $75,001 – $150,000 | $150 | |
| Qualified Surviving Spouse | $150,000 or less | $400 |
| $150,001 – $300,000 | $300 |
There are no age limits, and no application is required. Checks will be sent automatically to eligible taxpayers.
When will the checks arrive?
Inflation refund checks will begin mailing in fall 2025. Due to the volume—more than 8 million checks—they will be distributed over several weeks. Mailings are not tied to region or zip code, so delivery dates may vary.
The New York State Department of Taxation and Finance advises taxpayers to watch their mailboxes, as there is no online tracker or status tool for these payments.
What other relief is included in the budget?
In addition to inflation refunds, the FY 2026 budget includes:
- Expanded child tax credit: Up to $1,000 per child for families with children under 4, and $500 for children 4–16.
- Middle-class tax cuts: The lowest state income tax rates in 70 years for more than 8 million filers.
- Free school meals: Universal free breakfast and lunch for all public school students, saving families up to $1,600 per child annually.
According to the Governor’s office, these combined measures will provide up to $5,000 in economic relief to many New York families over the next year.
What happens next?
Eligible residents do not need to take any action to receive the inflation refund. Checks will be issued automatically to those who qualify based on 2023 filings. No sign-up or application is required.
More details about check delivery schedules are expected later this year. Residents with questions are advised to contact the Governor’s Office or visit the official New York State website for updates.
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