$400 inflation refund: New York starts issuing cheques — Check eligibility, tax status and other details

NEW York state has begun mailing out the state's first-ever inflation refund checks as part of its initiative to offer financial relief to New Yorkers who have paid increased sales taxes due to inflation.

According to the New York State Department of Taxation and Finance, over 8 million eligible taxpayers from the state will receive refunds pertaining to tax year 2023. All taxpayers who qualify for the refund, are not required to apply separately, and will automatically get their refunds.

Who is eligible for the refund and who isn't? Here's a glimpse at all the major queries
New York State inflation refund check: Are you eligible?

Any taxpayer who meets the following criteria is eligible for a refund check for the year 2023:

   ** filed Form IT-201, New York State Resident Income Tax Return, which is filed by full-year New York residents,
   ** reported income within the qualifying ranges,
   ** was not claimed as a dependent on another taxpayer’s returns

How to apply for the refund cheque?

There is no need to apply for the refund cheque. Any taxpayer who is eligible for the refund, will receive the cheque from the State Department of Taxation and Finance.

The refund amount depends on the respective taxpayer's income and the filing status as follows:
Filing Status    2023 New York Adjusted Gross Income (Form IT-201 line 33)    Refund Amount
Single    $75,000 or less    $200
Over $75,000, but not more than $150,000    $150

Married filing joint    $150,000 or less    $400
more than $150,000, but not more than $300,000    $300

Married filing separate    $75,000 or less    $200
Over $75,000, but not more than $150,000    $150

Head of household    $75,000 or less    $200
more than $75,000, but not more than $150,000    $150

Qualifying surviving spouse    $150,000 or less    $400
more than $150,000, but not more than $300,000    $300

When, where will the cheque be sent?

All the inflation refund cheques will be mailed to the most current address of each taxpayer, which is usually the person's address from the most recently filed federal tax returns.

Who is eligible to receive the cheque?

The New York State Department began mailing the cheques towards the end of September 2025. Although the department has not mentioned any specific schedule, it stated that taxpayers are likely to receive the cheques sooner or later than their neighbours, as mailings are not based on zip code or region.

Are the refund cheques taxable?

Yes, the cheques will be taxed by the IRS – and all taxpayers receiving an inflation refund cheque and will have to declare the refund amount on their 2025 federal tax return.