For several years, New York State has been implementing various economic relief measures, or stimulus checks, aimed at helping its residents cope with the high cost of living. These initiatives arise in response to specific economic pressures, such as post-pandemic inflation.
Among the most talked-about aid measures is the Inflation Refund Check. This program was authorized as a one-time payment by the state. Its main objective is to return to taxpayers a portion of the tax surpluses generated in part by higher sales taxes resulting from inflation. It is the initiative that most closely resembles the federal stimulus checks distributed during the pandemic.
Who is eligible for Inflation Refund Checks?
Eligibility for this refund is automatic and based on the 2023 tax return. To qualify, individuals must have filed Form IT-201, the return for state residents. Additionally, it is a requirement to be a permanent resident of New York. Temporary residents or nonresidents are not eligible to receive this payment.
The amount each person receives varies based on their adjusted gross income and filing status when they file their taxes in 2023. For single individuals or those filing as head of household with incomes up to $75,000, the payment is $200.
If their income was between $75,001 and $150,000, the amount is reduced to $150. For married couples filing jointly, the payment is $400 if their combined income was $150,000 or less. If their income was between $150,001 and $300,000, the rebate is $300.
No need to apply: stimulus checks arrive on their own
The great advantage of this program is that it requires no action on the part of the taxpayer. The New York Department of Taxation and Finance automatically identifies eligible individuals. Payment is sent by traditional mail to the address the taxpayer had on file for their last return.
Have into consideration that this applies even to those who normally receive their tax refunds by direct deposit. Mailings are scheduled to begin in late September 2025.
Tax relief for families with school-age children
Another key program is STAR (School Tax Relief). Unlike the inflation-based rebate, STAR is not a one-time payment, but a permanent benefit that offers relief on school taxes. This tax is often the largest item on the property bill for New York homeowners. The program has been in operation for many years and is divided into two tiers.
Basic STAR is available to owners of their primary residence whose combined household income is less than $500,000. This benefit applies regardless of the owner’s age. Enhanced STAR, on the other hand, offers a larger discount and is reserved for owners age 65 and older. To qualify, the combined household income must be less than $107,300. The home must be the applicant’s primary residence.
To receive the STAR benefit, property owners must register for the program. Unlike the inflation check, this is not automatic for new property owners. Registration is done through the NY Department of Revenue website and is generally only required once.
The benefit does not arrive as a check in the mail, but is applied directly as a reduction on the school tax bill. If the credit is greater than the tax amount, the excess is returned to the property owner as a refund.
Stimulus payments for energy expenses: HEAP program
The Home Energy Assistance Program (HEAP) is another available assistance program, although its nature is different. HEAP is designed to help low-income families pay for winter heating costs. This program is not a universal stimulus check, but rather targeted assistance for an essential expense. Eligibility depends on income, household size, and heating source.
HEAP payments are not uniform. The amount varies depending on each household’s particular situation. Unlike previous programs, HEAP does require an active application. Residents must apply through their local Department of Social Services office or online during the application period, which typically opens in the fall. Funds are limited and are allocated on a first-come, first-served basis.
