Key Points and Summary: New York’s new inflation refund is a one-time state payment meant to offset higher prices and sales taxes.
-Eligible residents are full-time New Yorkers who filed a 2023 Form IT-201, fall within specific income thresholds, and were not claimed as dependents.
-Checks of $150, $200, $300, or $400 are being mailed automatically—no application or direct deposit—and won’t be used to offset past-due debts.
-However, the refunds are subject to federal income tax and must be reported on 2025 returns. Officials are also warning about scams: the state and IRS will not call or text asking for personal information.
What is the NY Inflation Refund and How Do You Get It?
New York, in its current state budget, gave some relief to residents facing ongoing inflation by issuing inflation refund checks for the first time in state history.
“These one-time payments provide relief to New Yorkers who have paid increased sales taxes due to inflation,” the state’s Department of Finance says on its website.
Those who qualify for a payment are not required to do anything; they automatically receive the checks, which began distribution in September.
Those eligible for the refund checks have to meet three criteria, per the Department of Finance website: They have to have “filed Form IT-201, New York State Resident Income Tax Return, reported income within the qualifying thresholds below, and were not claimed as a dependent on another taxpayer’s return.”
New Yorkers were not required to apply for the checks, and checks were sent to the residents’ addresses of record. The checks will not be direct-deposited, even for those who have direct deposit set up for their regular tax refund. The refund checks will be issued only to full-time New York residents.
New Yorkers are also promised that “the amount of your inflation refund will not be applied to any outstanding debts.”
How Big a Check?
The amount of the check is either $150, $200, $300, or $400. It depends on several factors, including the taxpayer’s adjusted gross income, whether they are filing as single, married filing jointly, or married filing separately, and whether they are head of household or a “qualifying surviving spouse.” The table of how large the checks are is available here.
The checks were sent out to 8 million people, and the Department of Finance could not make promises or predictions about exactly when New Yorkers would receive their checks.
What if Your Check Never Came?
“According to the state, the inflation refund checks will continue to be sent out through the end of November, and when you’ll receive it depends on when you filed your 2023 tax return and had it processed − the earlier you filed it, the earlier you’ll receive it,” the Utica Observer-Dispatch reported.
Meanwhile, Gothamist reported this fall that the checks are not tax-free.
“State officials confirmed to Gothamist that the checks, which will start arriving this week, are subject to federal income tax. Federal charges won’t be deducted from the face value of the rebate checks, so it will be up to New Yorkers to report the rebates on their 2025 income tax returns when they’re filed next year, the report said.
This means, per that report, that the program, as pushed by a Democratic governor, “will end up sending hundreds of millions of dollars to President Donald Trump’s administration.”
Scam Alert
Gov. Kathy Hochul, who made the checks a reality through legislation this year, warned in September of scams related to the checks.
Such scams, per the governor’s announcement, have included “text messages, voice messages, emails, and direct mail to taxpayers in an attempt to spread false information” about the checks.
Contrary to what is alleged in the messages, the governor’s office said, “the New York State Tax Department and the IRS will not call or text New Yorkers with requests for any personal information.”
“New Yorkers do not have to do anything to receive an inflation refund check outside of meeting the eligibility requirements,” the governor said in a statement.
“With scams targeting the state’s inflation refund initiative, let me be clear: The Tax Department and the IRS do not call or text individuals for personal information. My administration urges New Yorkers to remain vigilant and report these scams to the Tax Department to protect yourself from being a victim.”
Taxpayers approached by such scammers can report them here.
How the Inflation Refund Happened
At the time when the potential inflation refund checks were debated in Albany this spring, the proposal was contentious. Even some Democrats, in Hochul’s party, were lukewarm on the proposal, the New York Times said at the time.
“We’re going to give it back directly — no red tape, no hoops to jump through, just giving you that check,” Hochul said after the budget passed in May.
But not everyone agrees with the governor.
“The decision to spend $2 billion on one-time ‘inflation refund’ checks for about eight million New York households—one of the largest and most tactile components of the multibillion dollar package—has been derided by some Democratic legislators as a stunt that is more about politics than good policy,” the Times reported.
The story quoted State Sen. James Skoufis as stating that “New Yorkers know a gimmick when they see one.”
The original proposal was to spend $3 billion on the checks, though that amount was later reduced to $2 billion in negotiations.
A Federal Version?
There has not been a federal version of what New York passed, a widespread stimulus check meant specifically to help taxpayers deal with inflation. However, such a proposal has been bandied about from time to time.
However, since economists have alleged that the COVID-era stimulus checks worsened inflation, there’s been skepticism about doing so again.
President Trump, while not calling it “inflation relief,” has proposed a “tariff rebate check” to be distributed in 2026 to present American taxpayers with money collected from tariffs.
But according to a CNN analysis, the proposal is highly unlikely to become a reality.
“It’s highly unlikely there is some sort of stimulus check sent out next year. I would be pretty shocked,” Scott Lincicome, vice president of general economics at the Cato Institute, told CNN.
There are several reasons for this: It would be very expensive and likely to both increase the deficit and worsen inflation. It would require an act of Congress, and it’s far from a sure thing whether Trump would have the votes for it.
And the amount it would take to send every American $2,000 would exceed the tariff revenue collected.
About the Author: Stephen Silver
Stephen Silver is an award-winning journalist, essayist, and film critic, and contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review, and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. For over a decade, Stephen has authored thousands of articles that focus on politics, national security, technology, and the economy. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
