Inflation — the steady rise in prices of goods and services—has been a growing concern for New Yorkers, as it diminishes the purchasing power of their money. To help residents cope, the New York City Department of Taxation and Revenue will soon begin issuing one-time inflation refund checks to eligible households.
Understanding Inflation and Its Causes in NYC
Inflation typically results from an increase in the money supply or disruptions in the supply chain, causing prices to climb. For example, a country might print more money, devalue its currency, or experience shortages of goods, all of which can push prices higher. The result is that each dollar buys less than before.
Common measures of inflation include the Consumer Price Index (CPI) and the Wholesale Price Index (WPI), both tracking price changes across a range of goods and services.
How Inflation Refund Checks Will Help New Yorkers
Governor Kathy Hochul announced that inflation refund checks of up to $400 will be mailed to approximately 8.2 million households starting mid-October 2025. These payments are automatic and aim to offset the higher sales taxes many have paid due to inflation.
Eligibility for the refund includes:
- Filing a New York State Resident Income Tax Return in 2023 (Form IT-201)
- Not being claimed as a dependent on someone else’s return
- Meeting specific income thresholds
Payments will be staggered over several weeks, without a set schedule based on location or zip code.
Broader Budget Initiatives to Ease Financial Strain
This refund program is part of the 2026 New York State Budget, which also includes:
- Expanding the New York Child Tax Credit up to $1,000 per child
- Cutting middle-class taxes to their lowest level in 70 years
- Providing universal free school meals, potentially saving families $1,600 per child annually
Governor Hochul’s initiatives are designed to help working families and middle-class residents weather the rising cost of living by putting more money back in their pockets and reducing everyday expenses.
Information sourced from:
- New York City Department of Taxation and Revenue
- Official statement by Governor Kathy Hochul