In fall 2025, New York State will launch an inflation refund program aimed at helping residents cope with inflation. This initiative, funded by a sales tax surplus, was approved in the state’s FY 2026 budget.
The program is designed to provide relief to eligible New Yorkers, offering refunds that could be as high as $400 per household. Here’s everything you need to know about the program, including eligibility, refund amounts, and how to claim the money.
Who is Eligible for the Inflation Refund?
To qualify for the inflation refund, New York residents must meet several key requirements:
Tax Filing Requirement: You must have filed a state tax return (Form IT‑201) for the 2023 tax year as a New York resident. This is the mandatory form for consideration in the automated selection process.
Income Limits: Your Adjusted Gross Income (AGI) must fall within certain limits based on your filing status. The income thresholds vary for single filers, heads of household, married joint filers, married separate filers, and qualifying surviving spouses. If your AGI exceeds these limits, you will not be eligible for the refund.
Residency and Dependency Status: You must have been a full-time New York resident throughout 2023 and not claimed as a dependent on another person’s tax return. The Tax Department will verify this through cross-referenced data.
Inflation Refund Payment Chart
The amount you receive depends on your filing status and income level. Here’s the breakdown:
Single filers or heads of household with AGI ≤ $75,000: Receive $200.
Single filers or heads of household with AGI between $75,001 and $150,000: Receive $150.
For married joint filers:
AGI ≤ $150,000: Receive $400.
AGI between $150,001 and $300,000: Receive $300.
For married separate filers, the payment amounts follow the same scale as for single filers:
AGI ≤ $75,000: Receive $200.
AGI between $75,001 and $150,000: Receive $150.
For qualifying surviving spouses:
AGI ≤ $150,000: Receive $400.
AGI between $150,001 and $300,000: Receive $300.
The maximum refund available is $400, regardless of your filing category.
Do You Need to Do Anything to Claim the Refund?
Good news: the process is automatic. You do not need to fill out additional forms to claim the refund. The New York State Tax Department will use the data from your 2023 IT‑201 tax return to determine your eligibility and calculate the refund amount. There are no extra steps required from your side.
When Will You Receive Your Check?
Physical refund checks will be mailed between October and November 2025. These checks will be sent in regional batches, but no specific distribution schedule has been published.
Important to note: even if you previously used direct deposit for your tax refunds, this inflation refund will only be issued by check. So, it’s crucial to ensure your mailing address is updated with the Tax Department.
If you’ve moved recently, you should update your address through your online account at tax.ny.gov to avoid delays in receiving your refund.