New York residents grappling with the pain of rising prices can finally breathe a sigh of relief. Governor Kathy Hochul’s 2025-2026 state budget has approved the launch of the New York Inflation Relief Rebate Program, distributing about $3 billion in excess sales tax revenue back to over 8 million eligible taxpayers.
This initiative, which is central to the Governor’s 2025 agenda, aims to directly combat the staggering 25%+ rise in grocery prices since 2019—a surge that inadvertently resulted in higher sales tax collections. Think of this as Albany throwing a lifeline to households navigating the rough economic waters.
New York’s Inflation Refunds Confirmed in 2025
This rebate is just one part of a larger strategy to reduce the cost of living, including middle-class tax cuts, expanded child tax credits, and universal free school meals.
By returning inflation-driven tax revenue to residents, the state is acknowledging the financial strain felt at gas stations and grocery stores. Distribution of the checks begins in mid-October 2025, with no application required—a streamlined process that prioritizes accessibility.
How Much Will You Get?
Payment values depend on filing status and your 2023 New York Adjusted Gross Income (AGI):
Single Filers:
Income ≤ $75,000: $200 rebate
Income $75,001 – $150,000: $150 rebate
Married Filing Jointly:
Income ≤ $150,000: $400 rebate
Income $150,001 – $300,000: $300 rebate
Head of Household:
Income ≤ $75,000: $200 rebate
Income $75,001 – $150,000: $150 rebate
Qualifying Surviving Spouse:
Income ≤ $150,000: $400 rebate
Income $150,001 – $300,000: $300 rebate
Timetable for Distribution
The New York State Department of Taxation and Finance will begin mailing checks in mid-October 2025, continuing into November due to the large volume of over 8 million checks. There is no need to take action—the checks will be sent to the 2023 tax filing addresses, with limited direct deposits. While patience will be required, updates will not be available via call centers or ZIP-code sequencing at this stage.
You can confirm qualifications or check the status of your payment at tax.ny.gov using your SSN and 2023 tax information. For complex cases, contact the number: 518-457-5181.
Where Are These Inflation Refunds Being Sent?
The regional distribution of these refunds is based on the populations of the areas:
New York City: 740,000 households, 1.2 million children supported
Long Island: 215,000 households, 355,000 children supported
Mid-Hudson: 180,000 households, 330,000 children supported
Western New York: 118,000 households, 207,000 children supported
Finger Lakes: 104,000 households, 180,000 children supported
Capital Region: 86,000 households, 145,000 children supported
Central New York: 67,000 households, 116,000 children supported
Southern Tier: 51,000 households, 89,000 children supported
Mohawk Valley: 43,500 households, 76,500 children supported
North Country: 35,000 households, 61,000 children supported
Impact on Child Poverty
The inflation refunds are part of a larger suite of measures designed to alleviate financial strain. The state government expects these refunds, along with other benefits, to reduce child poverty rates by between 8.2% and 17.7%.
One of the most significant changes is the expanded New York Child Tax Credit. This program, first introduced by Governor Hochul in January 2025, now targets 1.6 million households across the state, reaching nearly 3 million children.
The Game-Changer: Expanded Child Tax Credit
If you have a child under 4 years old, you’ll receive up to $1,000 per child starting this year.
In 2026, the program will extend to provide $500 for each child aged 4 through 16.
This credit is fully refundable, meaning you can receive the credit even if your tax bill is zero, with the payment going directly to your bank account.
