New York State has introduced a direct financial relief initiative called the Inflation Refund Checks, which was included in the New York State Budget for Fiscal Year 2026.
Governor Kathy Hochul signed the budget into law in May 2025, aiming to help residents cope with the high cost of living by providing direct payments to approximately 8 million individuals.
Overview of the New York FY 2026 Budget
The total budget for Fiscal Year 2026 is approximately $254 billion, marking a 5.3% increase from the previous fiscal year. Key areas of focus include affordability, public schools, health care, housing, public safety, and the Inflation Refund Checks program.
Inflation Refund Checks Program Details
As of September 2, 2025, state officials released important details about the Inflation Refund Checks program. This initiative is part of a broader fiscal plan that will provide more than $5 billion in rebates and credits to taxpayers.
The refund checks will be automatically distributed based on information from the 2023 state income tax returns. This method eliminates the need for individuals to apply, ensuring a faster and more efficient distribution process.
Do I Need to Apply for the NY Tax Rebate?
No application is required for eligible residents. The checks will be sent automatically to those who filed a 2023 New York State income tax return, were legal residents of New York for all of 2023, and meet the program’s income limits.
The checks are set to be mailed starting in mid-October 2025, and the process will take several weeks due to the large volume of payments. It is estimated that over 8.2 million households across New York State will receive the checks, including approximately 1.25 million households on Long Island.
Eligibility and Payment Amounts
Eligibility for the Inflation Refund Checks is determined by three criteria:
- Filing a 2023 New York State income tax return
- Being a legal resident of New York for the entire year of 2023
- Meeting income limits set by the program
The payment amount depends on both the type of tax return filed and the adjusted gross income (AGI) of the individual or couple for the 2023 tax year. Here’s a breakdown of the payments:
Single or Individual Filers:
$200 for AGI of $75,000 or less
$150 for AGI between $75,001 and $150,000
Married Filing Jointly:
$400 for AGI of $150,000 or less
$300 for AGI between $150,001 and $300,000
These payments are not taxable at the federal or state level. The aim is to provide direct financial support to alleviate long-term affordability challenges for New Yorkers.
Other Initiatives in New York’s FY 2026 Budget
In addition to the Inflation Refund Checks, the FY 2026 budget includes several other initiatives:
- Tax Cuts: There will be a 0.2% cut in tax rates for the first five income tax brackets, benefiting middle-class taxpayers.
- Child Tax Credit Expansion: The budget includes an increase in the Child Tax Credit, which will provide more than $5 billion in tax savings for families.
- Affordable Child Care: A $2.2 billion allocation is earmarked to improve access to subsidized child care programs for working families across the state.
- Public School Funding: The state will invest a record $37.6 billion in public schools for the 2025-2026 school year, with an expansion of free school meal programs.
- Community College Programs: The budget introduces a plan to offer free community college for adults pursuing degrees in high-demand fields.
- Health Care: The Medicaid budget will increase by 9%, bringing it to the highest level ever, and the budget also allocates funds for mental health care services.
With these initiatives, New York State aims to provide immediate financial relief while addressing long-term issues related to affordability, education, and health care.
