In response to rising living costs and increased sales taxes, New York State has introduced a one-time Inflation Refund Check program for the 2025–2026 fiscal year.
This initiative aims to provide financial relief to eligible residents, returning a portion of the state’s surplus tax revenue directly to taxpayers.
Overview of the Inflation Refund Checks
Governor Kathy Hochul announced that over 8.2 million New Yorkers will receive these refund checks, with amounts ranging from $150 to $400, depending on income and filing status.
The distribution began in late September 2025 and will continue through October and November.
Eligibility Criteria
To qualify for a refund check, individuals must meet the following requirements:
- Filed Form IT-201, the New York State Resident Income Tax Return, for the 2023 tax year.
- Reported income within specified thresholds (see table below).
- Were not claimed as a dependent on another taxpayer’s return.
Refund Amounts by Filing Status and Income
| Filing Status | Income Range (2023 AGI) | Refund Amount |
|---|---|---|
| Single | $75,000 or less | $200 |
| Single | $75,001 – $150,000 | $150 |
| Married Filing Joint | $150,000 or less | $400 |
| Married Filing Joint | $150,001 – $300,000 | $300 |
| Married Filing Separate | $75,000 or less | $200 |
| Married Filing Separate | $75,001 – $150,000 | $150 |
| Head of Household | $75,000 or less | $200 |
| Head of Household | $75,001 – $150,000 | $150 |
| Qualifying Surviving Spouse | $150,000 or less | $400 |
| Qualifying Surviving Spouse | $150,001 – $300,000 | $300 |
Note: Refund amounts are based on Adjusted Gross Income (AGI) as reported on Form IT-201, Line 33.
Distribution Process
- No Application Required: Eligible residents do not need to apply; checks will be mailed automatically.
- Mailing Address: Checks will be sent to the address listed on the most recent tax return filed (2024 or 2023).
- Payment Method: All payments will be issued via paper check; direct deposit is not available for this program.
- Delivery Timeline: Mailings began in late September and will continue through November.
Important Considerations
- Taxability: The refund checks are subject to federal income tax. Recipients should report the amount received on their 2025 federal tax returns.
- No Offset for Debts: Refund amounts will not be applied to any outstanding state or federal tax debts.
- Scam Awareness: Be cautious of unsolicited communications requesting personal information. The New York State Department of Taxation and Finance will not contact individuals for this program.
The 2025 New York Inflation Refund Checks provide timely financial relief to millions of residents affected by rising living costs.
By returning surplus tax revenue to taxpayers, the state aims to ease the financial burden on households. Eligible individuals should ensure their mailing address is up to date with the Department of Taxation and Finance to receive their checks promptly.
FAQs
Do I need to apply for the inflation refund check?
No, applications are not required. If you meet the eligibility criteria, the refund check will be mailed to you automatically.
What should I do if I have moved since filing my last tax return?
Update your address with the New York State Department of Taxation and Finance using your Individual Online Services Account to ensure the check is sent to your current address.
Are the inflation refund checks taxable?
Yes, the refund checks are subject to federal income tax. Report the amount received on your 2025 federal tax return.