As her first proposal for the 2025 State of the State, Governor Kathy Hochul has 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.
The new refund would send a payment of $300 to single taxpayers who make up to $150,000 per year and a payment of $500 to joint tax filers who make up to $300,000 per year. It is highly reminiscent of the recent stimulus checks of 2020 and 2021, which were each issued by then-President Trump and President Biden to help Americans recoup from the losses related to the COVID-19 pandemic and its subsequent lockdowns. In a very similar manner, Governor Hochul’s announcement is designed to help New Yorkers bounce back from inflation prices, boost morale, and encourage confidence in their new governor. This is one of several proposals to help address the cost of living that will be unveiled during the Governor’s upcoming State of the State address.
“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.”
Breaking Down the Refund
Governor Hochul’s proposed Inflation Refund is a one-time, direct payment that will reach New Yorkers throughout every corner of the State. In New York City, there will be over 3,645,000 recipients. In Long Island, there will be 1,344,000. In Hudson Valley, there will be 986,000. In Western New York, over 620,000 residents will receive a check. In Finger Lakes, 542,000 will. In the Capital Region, 502,000 checks will be sent out. In Central New York, 340,000 residents will receive their incentive. In the Southern Tier, an estimated 263,000 people will. And finally, in Mohawk Valley and North Country, 208,000 and 163,00 residents will receive their refund. All were told that the plan accounts for over 8.6 million New Yorkers to receive this inflation refund.
New York State has experienced growth in sales tax revenues that exceed historical averages in recent years. This growth has been driven largely by price inflation. Governor Hochul’s proposal would 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. Single taxpayers, head of household, or married filing separately will be eligible if their income is no greater than $150,000. Resident couples filing jointly will be eligible if their income is at most $300,000.
If this proposed Inflation Refund is passed by the State Legislature, payments will be made starting Fall 2025. “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,” said Governor Kathy Hochul.
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 childcare 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. Additionally, over $600 million in extra payments have been made to families receiving New York’s child tax credit and the Earned Income tax credit. She has also worked to expand the eligibility of New York’s child tax credit to cover kids under 4 years old.
Furthermore, more access to childcare assistance, with eligible families paying less than $15 per week, has been granted. There has been nearly $600 million in gas tax relief for everyday New Yorkers, with more than $200 million in additional food assistance for low-income kids. She has also overseen the expansion of New York’s Tuition Assistance Program to make education more affordable. Notably, she also proposed the nation’s first-ever paid prenatal leave law, so pregnant workers don’t have to choose between a paycheck and a checkup.
