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. 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. The 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 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.
Bob Duffy, President and CEO of the Greater Rochester Chamber, said, “As the Voice of Business for Greater Rochester, we are supportive of all efforts that seek to reinvest in our families and welcome the fact that over a half-million Finger Lakes residents can expect to benefit from this plan, sparking our local economies.”
If this proposed Inflation Refund is passed by the State Legislature, payments will be made starting Fall 2025.
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