Governor Hochul proposes New York’s first ever inflation refund

ALBANY, NY- Governor Kathy Hochul has revealed one of her first proposals for the upcoming 2025 State of the State – New York’s first ever inflation refund.

“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 Governor said.

If enacted, the refund would deliver about $3 billion in direct payments to around 8.6 million New York taxpayers statewide in 2025.

For single taxpayers making up to $150,000 per-year, officials say the refund would send them a payment of $300, while joint filers making up to $300,000 per-year would see a payment of $500.

In the North Country Region, the Governor’s Office estimates that there will be nearly 163,000 recipients for the refund and roughly 208,000 for the Mohawk Valley.

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, the Governor's Office says. This growth has been driven largely by price inflation.

Governor Hochul’s proposal will reportedly 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.

If this proposed Inflation Refund is passed by the State Legislature, payments will be made starting Fall 2025.

Image via the office of New York Governor Kathy Hochul.