While her State of the State address is still a little over a month away, Governor Kathy Hochul is starting to unveil some of her proposals for the new year. On Monday, she 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.
“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’s proposed Inflation Refund is a one-time, direct payment. Here is how many people would be recipients of the payment by region:
Governor Hochul is proposing this new Inflation Refund to help address what she says are 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.
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