New Yorkers will receive their first-ever inflation refund checks up to $400 in 2025. The state is offering one-time payments to residents who had paid the high sales tax under the affordability plan introduced in the FY 2026 budget.
The NY Taxation and Finance Department will send these checks automatically, so learn who can expect these refund checks in the article below.
NY Refund Inflation Checks 2025
On 9th May 2025, the state announced that they are returning the $2 billion to the state taxpayers through the first-ever NY inflation refund checks. The Governor said that they understand the cost of living in NY is so high, hence they plan to put some money into the taxpayers’ pockets.
The refund check is part of the FY 2026 budget to counterbalance the sales taxes people paid during 2021, and are currently paying due to the higher cost of living. The New Yorkers will receive the refund check based on the 2023 tax returns, hence, no application is needed for this refund check.
Apart from this inflation check, the state lawmakers have also introduced tax cuts for middle-class households, free school meals, and expanded the child tax credit for households with children under 4 to $1000 and $500 for children between 4 and 16 years of age.
Who is eligible?
The New Yorkers are speculating about the eligibility conditions of the upcoming inflation refund check can check it below:
- The New Yorkers who have filed the state income tax returns for the tax year 2023;
- The person should not be claimed as a dependent on the person’s tax return in the 2023 tax year.
- The income reported in the tax return should be under the adjusted income, that is, $75,000 or less, but not more than $1,50,000 for individuals and couples filing taxes jointly, $150,000 or less, but not more than $300,000.
Refund Amount
The New York Taxation and Finance Department will determine the refund check amount based on the taxpayer’s filing status and adjusted gross income reported in the tax year 2023. Here is the refund amount for the NY inflation refund check, depending on both factors:
| Filing Status | Adjusted Gross Income | Refund Amount |
| Single | $75,000 or less | $200 |
| Above $75,000 but not more than $150,000 | $150 | |
| Married and filing jointly | $150,000 or less | $400 |
| Above $150,000 but not more than $300,000 | $300 | |
| Married but filing separately | $75,000 or less | $200 |
| Above $75,000 but not more than $150,000 | $150 | |
| Head of Household | $75,000 or less | $200 |
| Above $75,000 but not above $150,000 | $150 | |
| Qualified Surviving Spouse | $150,000 or less | $400 |
| Above $150,000 but not more than $300,000 | $300 |
When to expect?
Governor Kathy Hochul has not revealed the refund check distribution date, however, the authority has confirmed the refund check will be mailed in early summer 2025, that is, around mid-June 2025.
The taxation department has identified that over 8 million taxpayers will be eligible for this inflation refund check, and checks for this many people will be disbursed in multiple weeks in the fall of 2025.
The date of the NY refund check disbursement is not clear, as for some people it may arrive earlier, or for some it may come a little late because it is not based on the region. The delivery of a refund check depends on your local mailing service, so the payout date is not exact.
The department has also said that the taxation department contact center will not have additional information on the refund check status, hence, the New Yorkers are advised to check their mail check during the mentioned time.
With the inflation refund check, tax cuts, free school meals, and other initiatives, the NY lawmakers are putting back up to $5000 into the pocket of MY taxpayers under their affordability plan of the FY 2026 budget. This amount of $500 will help the NY residents to maintain a good financial balance with their expenses in the rising cost of living.