New Yorkers will soon get some much-needed relief as the state prepares to issue a $400 Inflation Refund starting in August 2025. This one-time payment is part of the 2025–2026 state budget and is aimed at helping families cope with rising prices for essentials like food, housing, and utilities. Funded by excess sales tax revenue, the refund will reach over 8 million eligible residents across the state.
Who Is Eligible for the Refund
Eligibility for the $400 Inflation Refund is based on your 2023 New York State income tax return. Residents must have been full-time New York residents during 2023, filed their 2023 state tax return, and not been claimed as a dependent by someone else. Meeting the income requirements outlined by the state is also essential.
Income Limits and Refund Amounts
The amount you receive will depend on your income and filing status. Single filers or heads of household earning $75,000 or less will get $200, while those earning between $75,001 and $150,000 will get $150. Married couples filing jointly with an income of $150,000 or less will receive the full $400, and those with income between $150,001 and $300,000 will get $300. Married individuals filing separately will follow the same thresholds as single filers, receiving either $200 or $150 based on income.
When to Expect Your Payment
The New York Department of Taxation and Finance will start mailing checks in mid-August 2025, with distribution continuing until November 2025. These payments will be made by paper check only direct deposits or electronic transfers will not be available. If you have not received your check by December 1, 2025, you can contact the state’s helpline to check your payment status.
How to Prepare and Avoid Scams
To ensure you receive your refund without any issues, make sure your mailing address on file from your 2023 tax return is up to date. Be cautious of scams, as the state will never call, text, or email you to claim the refund. No fees or personal information are required to receive the check. Also, this refund will not be reduced or withheld for any back taxes or state debts you may owe.
Why the Refund Is Being Issued
This refund is part of a broader effort to return surplus sales tax revenue to residents and provide relief during times of high living costs. Beyond immediate financial support, it also aims to stimulate local economies and help families cover essential needs. The initiative is complemented by other measures in the state budget, including expanded child tax credits, middle-class tax reductions, and free meals for public school students.
What Residents Should Do Next
For most New Yorkers, no action is required other than ensuring their address is correct. The checks will arrive automatically, making this program one of the simplest ways for families to receive financial help. Keeping an eye on your mailbox starting in August 2025 will ensure you don’t miss this timely relief.