New York State has begun the process of distributing so-called “inflation refund checks,” one-time payments intended to partially offset the financial impact of inflation on taxpayers. These stimulus checks (kind-of) are part of the 2025–2026 State Budget and are part of a fiscal measure approved by the current administration.
The initiative was officially announced by Governor Kathy Hochul, who stated that the goal is to return to taxpayers a portion of the revenue collected through sales taxes, which increased as a result of rising prices. The program has a budget allocation of approximately $2 billion, as confirmed by the New York State Division of the Budget.
These payments are based on the premise that inflation has increased state tax revenue, so part of these funds are now allocated to taxpayers who meet specific criteria. This is not a social assistance program, but rather a refund tied to individuals’ prior tax status.
NY inflation stimulus checks: Who qualifies for $200-$400 ?
To be eligible, taxpayers must have filed Form IT-201 as a full-time New York resident for tax year 2023. They must also not have been claimed as a dependent on another tax return and their income must fall within the program’s thresholds. Those who do not meet any of these requirements will be excluded from the benefit.
Refund amounts vary by filing status and 2023 New York Adjusted Gross Income (NYAGI) income level. For single taxpayers with incomes up to $75,000, the refund will be $200; for those with incomes between $75,001 and $150,000, the refund will be $150.
For couples filing jointly, the payment will be $400 for incomes up to $150,000, and $300 for incomes between $150,001 and $300,000.
Those filing as heads of household or married filing separately will receive amounts equivalent to those of single individuals, while surviving spouses will receive the same amounts as cohabitants. The official disbursement table has been published by the New York Department of Taxation.
Delivery schedule and payment method for the inflation refunds
The checks began shipping in late September 2025 and will continue for several weeks. Although a delivery period for October and November had initially been announced, the state tax agency updated its information on August 27, 2025, stating that shipments would begin earlier than planned. There is no specific schedule for each postal code, so the order of receipt may vary by neighborhood or area.
Payment will be made exclusively by paper check, regardless of whether the taxpayer has opted for direct deposit for previous income tax refunds. Checks will be sent to the address listed on the most recently filed return. Those who have recently changed their address can update their information through the state’s Online Services platform.
The New York Department of Revenue has emphasized that these refunds will not be withheld to offset outstanding debts owed to the state. Nor will they be deducted from other benefit programs or prior tax obligations.
Are these stimulus checks taxed?
It is estimated that more than 8 million New York City residents will benefit from this measure, equivalent to approximately 8.2 million households. The government has provided a regional breakdown of recipients, which includes areas such as New York City, Long Island, and other regions of the state.
At the state tax level, the refund is considered a refund tied to previously paid taxes and therefore not taxable income for New York. However, its treatment at the federal level is less clear. According to the IRS, state tax refunds are generally not taxable for taxpayers who opted for the standard deduction. However, those who have itemized deductions may be affected.
To date, the IRS has not issued specific guidance regarding this particular program. Therefore, taxpayers are advised to retain all associated documentation—such as checks or official communications—and consult with a tax preparer when filing their 2025 federal income tax returns.
The initiative was proposed in late 2024 with initial amounts different from those finally approved. It was formally incorporated into the FY 2026 Budget, whose total amount rises to $254 billion. Public budget documents and communications from the State Comptroller’s Office detail the legal and accounting framework supporting the measure.
The $2 billion allocation for these refunds is duly detailed in the New York State Division of the Budget reports. The measure is part of a broader fiscal strategy aimed at alleviating economic pressures in inflationary contexts, without altering the current tax structure. The distribution of these funds is automatic, requiring no application from the recipients.
