New York, N.Y. – As part of its fiscal 2025-2026 budget, New York State is introducing a measure to distribute direct payments to residents, known as inflation rebate checks, aimed at easing the financial pressure caused by rising living costs.
Governor Kathy Hochul proposed the initiative, which utilizes a portion of the additional tax revenue from increased sales tax collections driven by inflation.
Automatic Payments to Eligible Residents
There is no application process for residents to access these inflation rebates. The New York Department of Taxation and Finance will automatically issue checks to those who meet the eligibility criteria based on their 2023 tax returns (Form IT-201). This streamlined approach eliminates the need for additional paperwork or applications.
Eligibility Criteria for Inflation Rebate Checks
To qualify for the rebate, taxpayers must meet three conditions:
- They must have filed Form IT-201 as a state resident.
- They must have a New York Adjusted Gross Income (NY AGI) within the thresholds outlined for their filing status.
- They must not have been claimed as a dependent on another taxpayer’s return during the 2023 tax year.
There are no age restrictions for receiving the payment.
Payment Amounts Based on Tax Profile
The rebate amounts are determined by your filing status and 2023 NY AGI (reported on Line 33 of Form IT-201):
Single filers:
$200 refund if NY AGI is $75,000 or less
$150 refund if NY AGI is $75,001-$150,000
Married filing jointly:
$400 refund if NY AGI is $150,000 or less
$300 refund if NY AGI is $150,001-$300,000
Married filing separately:
$200 refund if NY AGI is $75,000 or less
$150 refund if NY AGI is $75,001-$150,000
Head of household:
$200 refund if NY AGI is $75,000 or less
$150 refund if NY AGI is $75,001-$150,000
Qualifying surviving spouse:
$400 refund if NY AGI is $150,000 or less
$300 refund if NY AGI is $150,001-$300,000
Distribution Process and Territorial Breakdown
The rebate distribution will begin in mid-October 2025 and continue through November 2025. Paper checks will be mailed to the address listed on the taxpayer’s most recent tax return, and no direct deposits will be issued.
Due to the volume of checks, shipments will occur in waves, with no specific order based on geographic location.
The estimated distribution by region is as follows:
New York City: 3.53 million households
Long Island: 1.25 million households
Mid-Hudson: 924,000 households
Western New York: 585,000 households
Finger Lakes: 513,000 households
Capital Region: 475,000 households
Central New York: 321,000 households
Southern Tier: 251,000 households
Mohawk Valley: 198,000 households
North Country: 156,000 households
Address Updates and Debt Offset
Recipients who have changed their address must update their information at ny.gov/inflationrefund. Additionally, any outstanding debts owed to the state may result in the refund being used to settle those debts.
Additional Budget Provisions
The 2025-2026 New York State budget also includes provisions to reduce financial burdens, such as:
Tax cuts for the middle class, the lowest in seven decades.
An expanded child tax credit offering up to $1,000 per child under 4 years old and $500 for children between 4 and 16 years old.
Free school meals for all public school students.
While recipients have the flexibility to use the inflation rebate as they see fit, experts suggest putting the funds in high-yield savings accounts (HYSAs) to combat the long-term effects of inflation. The total estimated economic impact of this initiative is $2 billion.
