New York residents will see two significant financial relief programs in 2025: The new inflation refund checks and the ongoing STAR credit program. Each initiative targets different cost burdens and eligibility groups. Here’s how they compare.
What is the 2025 inflation refund?
The 2025–2026 New York State budget introduces the state’s first inflation refund. This one-time payment aims to offset the sales tax burden residents faced due to inflation.
Eligibility:
- Filed a 2023 New York State Resident Income Tax Return (Form IT-201)
- Met income thresholds based on filing status
- Not claimed as a dependent by another taxpayer
Payment amounts:
- Single or Head of Household:
- Income ≤ $75,000: $200
- $75,001–$150,000: $150
- Married Filing Jointly or Qualified Surviving Spouse:
- Income ≤ $150,000: $400
- $150,001–$300,000: $300
- Married Filing Separately:
- Income ≤ $75,000: $200
- $75,001–$150,000: $150
Delivery schedule:
- Refund checks begin mailing mid-October 2025
- Over 8 million checks issued over several weeks
- No application needed; checks mailed automatically
What is the STAR credit?
The School Tax Relief (STAR) program provides annual property tax relief to homeowners.
Program types:
- STAR Credit: Annual payment via check or direct deposit
- STAR Exemption: Direct reduction on school property tax bill (only for pre-2015 homeowners)
Eligibility:
- Homeowners with income ≤ $500,000
- Property must be the owner’s primary residence
STAR benefit types:
- Basic STAR: Available to most eligible homeowners
- Enhanced STAR: For seniors aged 65+ meeting income limits
Delivery:
- Payments typically issued annually before school tax due dates
- Check delivery schedules by county and school district via the STAR Credit Delivery Schedule tool
- Direct deposit option available via Homeowner Benefit Portal
Key differences
| Feature | Inflation Refund | STAR Credit |
|---|---|---|
| Type | One-time payment | Annual benefit |
| Purpose | Offset sales tax burden from inflation | Reduce school property tax burden |
| Eligibility | Income-based, based on 2023 tax return | Homeownership, primary residence, income < $500,000 |
| Delivery | Paper checks, mid-Oct 2025 | Check or direct deposit, annually |
| Application | None needed | Required via Tax Department or Portal |
What happens next?
If you’re eligible for both programs, you could receive both payments in 2025—a boost to help manage property and living costs. To ensure you don’t miss out:
- Confirm your 2023 tax filing status
- Verify your address is up-to-date with the NYS Tax Department
- Register for the STAR credit if you haven’t already
Stay informed by checking the New York State Department of Taxation and Finance website for updates.
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