Governor Hochul Proposes $500 Inflation Refund for Millions of New Yorkers

New York Governor Kathy Hochul has unveiled a proposal for New York State’s first-ever Inflation Refund, an initiative designed to provide direct financial relief to middle-class taxpayers. Announced as part of her 2025 State of the State agenda, the plan allocates approximately $3 billion to deliver payments to 8.6 million taxpayers statewide. The proposal aims to ease the financial strain caused by inflation, particularly on everyday goods, in the years following the COVID-19 pandemic.

Under the plan, single taxpayers earning up to $150,000 annually would receive $300, while joint filers with incomes up to $300,000 would receive $500. Governor Hochul emphasized the importance of this relief effort, stating, “Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we’re returning that cash back to middle-class families. The cost of living is still too damn high, and New Yorkers deserve a break.”

The Inflation Refund is a one-time payment that will reach every corner of the state, ensuring broad support for residents. The estimated recipients include 3.6 million in New York City, 1.3 million on Long Island, and hundreds of thousands in regions such as the Hudson Valley, Western New York, and the Finger Lakes.

This proposal capitalizes on surplus sales tax revenues, which have grown significantly due to inflation. Instead of utilizing these funds for new projects, the state plans to return them directly to taxpayers. Eligibility for the payments is based on recently filed tax returns, with no requirements tied to homeownership or parental status, ensuring that millions of middle-income New Yorkers can benefit.

If approved by the State Legislature, the payments are expected to begin in Fall 2025. More measures are expected to be announced in the coming weeks as part of her efforts to prioritize economic stability and affordability across the state.