In California, mailboxes are delivering modest checks and bank accounts are seeing unexpected deposits. it’s not a universal basic income experiment, but the state’s latest iteration of a temporary fiscal relief program: the sales tax surplus reimbursement, that turned into stimulus checks.
For eligible residents, it’s a welcome, if modest, financial boost. For the state, it’s a calculated political and economic maneuver, a way to return a slice of an unprecedented budget surplus directly to the people who helped create it through their spending. Let’s find out more about this stimulus program.
California to deliver millions of stimulus checks
In essence, this money is a giveback. The state of California funds its operations through a complex tax system, with the sales tax being a major revenue engine. The base state rate sits at 7.25%, but with local add-ons, consumers can pay up to 10.25% at the register.
When the economy runs hotter than projected—driven by a surge in retail, tourism, or inflation-driven price increases—the state’s coffers swell beyond initial forecasts. This creates a surplus. California law provides a mechanism to return a portion of these specific excess collections directly to taxpayers, framing it not as a new benefit, but as a reimbursement for overpayment.
A new way to return taxes to residents
The program’s most direct ancestor is the Middle Class Tax Refund (MCTR) of 2022, which saw payments of up to $1,050 per family fueled by a staggering $97 billion surplus. The 2025 version is more modest, drawing from a projected $1.5 to $2 billion surplus from the 2024 fiscal year.
The estimated payments range from $200 to $565 for individuals and up to $1,130 for couples, with additional funds for families with dependents.
But who gets to share in this prosperity? The eligibility criteria are tightly defined, prioritizing low- to moderate-income households. To qualify, a person must have been a California resident for at least six months of the 2024 tax year and filed a state tax return.
Basics of the eligibility: claiming the stimulus check
The key gatekeeper is the California Adjusted Gross Income (CA AGI). The full payment is generally reserved for those with an AGI under $50,000, with a sliding scale for individuals earning up to $100,000 and couples filing jointly up to $200,000.
The distribution is currently in full swing. As of September 2025, the state’s Franchise Tax Board (FTB) has processed approximately 90% of direct deposits for those who received their previous tax refunds electronically. For everyone else—those who got paper checks or have changed their banking information—the wait involves the postal service.
Prepaid debit cards and checks are being mailed out through October, with deliveries taking an estimated four to six weeks. For the anxious, the FTB’s “Where’s My Refund?” online tool is the primary source of information, requiring a Social Security number and expected refund amount. A customer service line (800-852-5711) is also available, though wait times can be long during peak periods.
