In a direct move to counter the impact of rising prices, New York State will issue cash rebates to millions of residents this fall. Dubbed the “Inflation Refund,” this measure, part of the 2025-2026 state budget, channels part of the budget surplus straight into taxpayers’ pockets—particularly those feeling the tightest squeeze.
Governor Kathy Hochul championed this stimulus checks program, framing it as tangible relief with no extra paperwork required. The goal is clear: to soften the blow of inflation for low- and middle-income households. Essentials like groceries, housing, energy, and transportation have grown costlier.
Who qualifies for the inflation refunds?
The checks, ranging from $150 to $400, are based on 2023 state tax returns. They aim not only to stimulate the local economy but also to restore trust in government by returning surplus funds in a direct, meaningful way.
To be eligible, taxpayers must have filed their New York State tax return (IT-201) for 2023 by April 15, 2025. They must be full-year residents and cannot be claimed as dependents on another return. No prior tax debt or participation in other programs is required—eligibility is automatic for those who meet the criteria.
The exact amount depends on adjusted gross income (AGI) and filing status:
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Single filers or heads of household earning under $75,000 receive $200
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Those earning $75,001–$150,000 receive $150
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Married couples filing jointly with AGI under $150,000 receive $400
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Those earning $150,001–$300,000 receive $300
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Married filing separately? Same amounts as single filers apply.
No application needed — Checks coming by mail
The best part? No need to apply. The New York State Department of Taxation and Finance will automatically mail a physical check to the address on file from the latest tax return. There will be no direct deposits or electronic transfers.
The mass mailing starts in mid-October 2025 and continues over several weeks. Since there’s no regional order, neighbors may receive checks at different times—so keep an eye on your mailbox between October and November.
An estimated 8 million households statewide will receive payments. While New York City will see a large share, regions like Long Island, the Finger Lakes, and rural upstate areas will also see significant impact. The program is fully state-run, with no federal or third-party involvement.
More benefits for working-class families in NY
This refund is just one piece of New York’s 2025-2026 fiscal plan. It’s paired with an expanded child tax credit (up to $1,000 for kids under 4, $500 for those under 16), universal free school lunches in public schools, and a gradual income tax cut for the middle class.
Importantly, this rebate is separate from the STAR program (property tax relief), which remains unchanged but is processed independently.
