Money in Your Pockets: Governor Hochul Proposes Sending 8.6 Million New Yorkers an Inflation Refund Check as First Proposal of 2025 State of the State

Proposal Would Deliver $3 Billion by Taking Excess Sales Tax Revenue Driven by Inflation and Giving That Money Back to Everyday New Yorkers

$500 Payment For Families Making Less Than $300,000; $300 Payment for Individual New York Taxpayers Making Less Than $150,000

Governor Has Delivered More Than $5.5 Billion in Supplemental Payments, Tax Relief and Rebates Since Taking Office

As her first proposal for the 2025 State of the State, Governor Kathy Hochul today proposed New York State’s first-ever Inflation Refund, which would deliver about $3 billion in direct payments to around 8.6 million New York taxpayers statewide in 2025. This new refund would send a payment of $300 to single taxpayers who make up to $150,000 per year, and a payment of $500 for joint tax filers making up to $300,000 per year. Today’s announcement is one of several proposals to help address the cost of living that will be unveiled as part of the Governor’s upcoming State of the State.

“Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we're returning that cash back to middle class families,” Governor Hochul said. “My agenda for the coming year will be laser-focused on putting money back in your pockets, and that starts with proposing Inflation Refund checks of up to $500 to help millions of hard-working New Yorkers. It's simple: the cost of living is still too damn high, and New Yorkers deserve a break.”

Governor Hochul’s proposed Inflation Refund is a one-time, direct payment that will reach New Yorkers throughout every corner of the State, as seen in the following regional breakdown:

Region	Estimated Recipients
New York City	3,645,000
Long Island	1,344,000
Hudson Valley	986,000
Western New York	620,000
Finger Lakes	542,000
Capital Region	502,000
Central New York	340,000
Southern Tier	263,000
Mohawk Valley	208,000
North Country	163,000
Total	About 8.6 Million

Governor Hochul is proposing this new Inflation Refund to help address the impacts of inflation on the cost of everyday goods in the years following the COVID pandemic.

In recent years, New York State has experienced growth in sales tax revenues that exceed historical averages. This growth has been driven largely by price inflation. With that in mind, Governor Hochul’s proposal will use that surplus growth to provide a one-time payment to New Yorkers. This payment would be granted to New York State taxpayer filers regardless of homeownership or parental status.

New Yorkers who recently filed tax returns will be eligible for the payment. Taxpayers who are single, head of household, or married filing separately, will be eligible if their income was no greater than $150,000. Resident couples filing jointly will be eligible if their income was no greater than $300,000.

If this proposed Inflation Refund is passed by the State Legislature, payments will be made starting Fall 2025.

Governor Hochul’s “Money in Your Pockets” Agenda
This proposal is the latest step in Governor Hochul’s ongoing commitment to help address the cost of living by putting money back in the pockets of New Yorkers statewide.

Since taking office, the Hochul Administration has delivered more than $5.5 billion in supplemental payments, tax relief and rebates, as well as expanding access to child care assistance and paid leave for families and pregnant women.

These past efforts have included:

• More than $4 billion in tax relief for middle-class New Yorkers and homeowners.
• Over $600 million in extra payments for families receiving New York’s child tax credit and the Earned Income tax credit
• Expanded eligibility of New York’s child tax credit to cover kids under 4 years old.
• More access to child care assistance, with eligible families paying less than $15 per week.
• Nearly $600 million in gas tax relief for everyday New Yorkers.
• More than $200 million in additional food assistance for low-income kids.
• Expansion of New York’s Tuition Assistance Program to make education more affordable.
• The nation’s first-ever paid prenatal leave law, so pregnant workers don’t have to choose between a paycheck and a checkup.
• Expansion of New York’s paid family leave program to cover more workers statewide.