As part of the 2025–2026 New York State Budget, the state government has started sending out inflation refund checks to eligible taxpayers. These one-time payments are aimed at helping New Yorkers deal with the rising cost of living.
Though often referred to as “stimulus checks,” they’re actually tax refunds based on your 2023 state tax return.
Governor Kathy Hochul confirmed that the program will return part of the extra revenue collected from sales tax—which went up due to inflation—to qualifying taxpayers. The total budget for this initiative is $2 billion, and the payments are being sent automatically by mail.
Who Is Eligible for the Inflation Refund?
To qualify for the $200 to $400 inflation refund, you must meet the following conditions:
Filed a 2023 New York State income tax return (Form IT-201) as a full-year resident
Not claimed as a dependent on someone else’s tax return
Fall within specific income brackets based on your filing status
Here’s a quick look at the refund amounts:
| Filing Status | 2023 NYAGI Income Range | Refund Amount |
|---|---|---|
| Single / Head of Household / Married Filing Separately | Up to $75,000 | $200 |
| Single / Head of Household / Married Filing Separately | $75,001 – $150,000 | $150 |
| Married Filing Jointly / Surviving Spouse | Up to $150,000 | $400 |
| Married Filing Jointly / Surviving Spouse | $150,001 – $300,000 | $300 |
Anyone earning above these limits is not eligible for the refund.
When Will the Checks Arrive?
The state has already started sending checks as of late September 2025, earlier than initially expected. Originally scheduled for October and November, the New York Department of Taxation moved the timeline up, beginning mailing in the last week of September.
Key points to remember:
All payments are by paper check only—no direct deposits.
The checks will be sent to the address listed on your most recent tax return.
There is no specific schedule by ZIP code, so delivery times may vary.
If you’ve moved recently, you can update your mailing address using New York State’s Online Services portal.
Will the Refund Be Taxable?
At the state level: These checks are not taxable since they are considered a refund of prior taxes paid.
At the federal level: Things are less clear.
If you claimed the standard deduction, the refund likely won’t be taxable.
If you itemized deductions, you may need to report the refund depending on your federal tax situation.
The IRS has not released specific guidance yet for this program, so it’s best to:
Keep your check and any official communication
Talk to a tax professional when filing your 2025 federal return
How Many People Will Benefit?
An estimated 8.2 million households across New York State are expected to receive these payments. The program covers various regions, including:
New York City
Long Island
Upstate and Western New York
Hudson Valley and Capital Region
No application is needed. If you’re eligible based on your 2023 return, you’ll receive the refund automatically.
Can the Refund Be Taken for Other Debts?
No. The New York Department of Taxation has confirmed that:
The refund will not be reduced or withheld for state tax debts.
It won’t affect your eligibility for other state benefit programs.
So even if you owe the state money or receive public assistance, you’ll still get the full amount you’re eligible for.
New York’s 2025 inflation refund checks are a welcome relief for millions of taxpayers feeling the pinch of rising prices. If you filed your 2023 taxes in New York as a full-year resident, you may already be eligible to receive $200 to $400, depending on your income and filing status.
The good news? There’s no application, and you don’t need to take any action—just check your mail. While these payments aren’t taxable at the state level, keep all documents and consult a tax expert when filing your federal return. This is one more way the state is trying to give back to its residents during tough economic times.
