A plan to disburse inflation refund checks to New York taxpayers has been announced. This plan is part of New York State’s budget for the 2026 fiscal year. The refund check amounts will be decided based on 2023 tax information. This refund will be accessible to over eight million New Yorkers. Another provision of the budget is a tax reduction for middle-class New York taxpayers. The new budget also builds on the existing Child Tax Credit. In addition, the budget eliminates restrictions that limit eligibility for free meals at school.
2026 New York State Budget Overview
According to New York State’s website, “Governor Kathy Hochul… rallied with New Yorkers.” Her reason for celebration was New York State’s new budget for FY 2026. FY indicates fiscal year. A fiscal year is an annual time unit used in government accounting. Fiscal years do not necessarily correspond with calendar years. The fiscal year for New York State is from April 1 to March 31.
Included in the new budget are features designed to provide financial help for New Yorkers. The budget includes cutting middle-class taxes and increasing the reach of the Child Tax Credit. Also, the website states the budget ensures “free school meals for over 2.7 million students.” Another provision of the budget is for millions of inflation refund checks.
Inflation Refund Checks
While more information about inflation refunds will come later, some details are known. New York State’s website describes inflation that has caused rising prices and drained personal finances. The website states inflation “has also driven… increases in the State’s collection of sales tax.” The governor’s stated goal is to give New Yorkers “an Inflation Refund.” This way, money can be returned to hardworking people who rely on it.
Governor Hochul plans for refund checks to be sent directly to New York taxpayers. According to the New York State website, this “will put $2 billion back in…pockets.” Gothamist states: “An estimated 8.2 million filers will be eligible.” How much money New York taxpayers will receive will depend on their income. Depending on filing status, taxpayers will receive checks of $150, $200, $300, or $400. Check amounts will be decided based on tax filing information from 2023.
Other Notable Budget Details
The budget also features an intended reduction in taxes for middle-class New Yorkers. Middle-class tax rates could then drop to levels not seen in seventy years. A more general tax level decrease will be implemented first. This, according to the state website, will impact “more than 75 percent of… tax filers.” Over eight million taxpayers in New York could see relief of $1 billion each year.
Another aspect of the new budget is an expansion of the state’s Child Tax Credit. This will be the state’s biggest extension of this credit. The tax credit will be provided to 1.6 million families in New York. Governor Hochul is expanding eligibility for the Child Tax Credit. This credit will be accessible to more families. In addition, there will be an increase in money available per family. New York State’s website reports that the average credit amount is set to approximately double. According to the website, this amount will increase “from $472 to $943.”
Also, the budget is designed to provide free meals at school for students. The state website explains that “any financial requirements to receive this benefit” are being eliminated. All New York students will now be eligible for free school lunch and breakfast. Having these meals available could provide around $165 in savings per month for each child. In addition, free school meals can lessen food insecurity and provide learning benefits for students.
Context for Budget Plans
Governor Hochul has told constituents: “I promised to put more money in your pockets.” This new budget aims to help Hochul keep her promise to New Yorkers. Governor Hochul states that the budget provides “nearly $5,000” for families in New York. This money could be useful for people in the state coping with price increases.
