Update: Millions of New Yorkers Will Receive “Inflation Refund” Checks

New York Governor Kathy Hochul has proposed a sweeping $3 billion plan to send “inflation refund” checks to 8.6 million taxpayers across the state. Announced as part of her 2025 State of the State agenda, the initiative aims to alleviate the financial strain caused by rising consumer prices—especially on essentials like groceries, which have surged over 25% since 2019. “My agenda for the coming year will be laser-focused on putting money back in your pockets,” Hochul said. “The cost of living is still too damn high, and New Yorkers deserve a break.” This proposed one-time payment would be the state’s first direct inflation rebate and is designed to redistribute unexpected sales tax revenue that was bolstered by high inflation and consumer spending.

Who Qualifies and How Much You’ll Get

Under Hochul’s plan, the amount of the refund will be based on income levels:

• Single taxpayers earning up to $150,000 would receive $300

• Families or joint filers earning up to $300,000 would receive $500

The payments would be available to all taxpayers, regardless of whether they own a home or have children. For example, in Central New York alone, an estimated 340,000 people are expected to qualify. However, alternative proposals are being discussed in the state legislature. Some Senate Democrats have suggested limiting the refunds to senior citizens through income-tax credits of the same value, with payments continuing for three consecutive years instead of just once.

Timeline for Payments and Budget Talks

If approved, Hochul says the checks would be mailed out in fall 2025, although an exact date hasn’t been announced. The payments would likely be distributed through the state’s tax infrastructure, similar to previous rebate checks or tax credits.

Budget negotiations are ongoing, with both the Assembly and Senate offering their versions of the fiscal plan. Hochul’s executive budget comes in at $252 billion, while the Assembly’s proposal totals $256.6 billion and the Senate’s is at $259 billion.

While Assembly Democrats have largely backed Hochul’s plan, Senate Democrats have leaned toward a more targeted approach focusing on seniors. Meanwhile, Republicans have criticized the refund checks as a political stunt, advocating instead for broader, long-term tax relief measures.

How New York Compares to Other States

New York isn’t alone in offering inflation relief. Since the pandemic, at least 22 states have distributed similar rebate checks.

• California issued up to $1,050 in “middle-class tax refunds” in 2022.

• Virginia gave rebates of up to $200 per person in 2023.

• Georgia provided tax rebates ranging from $250 to $375 between 2022 and 2024.

These payments have become a common policy tool to address economic strain from inflation, with New York now potentially joining the list if Hochul’s proposal is passed in time.