Hochul proposes inflation refund for state residents

New Yorkers may get an “inflation refund” in 2025 under a new proposal by Governor Kathy Hochul. The announcement will be part of the governor’s 2025 State of the State address. This 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 proposal would send about $3 billion to roughly 8.6 million New York taxpayers.

“Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we’re returning that cash back to middle class families,” 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.”

The inflation refunds would be one-time direct payments to state taxpayers. According to Hochul’s announcement, an estimated 986,000 residents in the greater Hudson Valley area would receive refunds.

Of course, the state Legislature still needs to approve the payments. If approved, payments will be sent out in the fall of 2025. Hochul’s 2025 State of the State address will take place January 14, 2025, at 1 p.m.