If you’re living in California or New York, don’t be surprised if your bank balance ticks up this year. That’s because both states are rolling out new stimulus-style relief payments worth up to $500—and depending on your income, you may already qualify without doing anything.
Unlike the federal COVID-era stimulus checks, this money is coming directly from state programs, aimed at helping working families and middle-income residents keep up with rising prices. With inflation and housing costs continuing to weigh on wallets, state officials are stepping in to deliver targeted relief—and it’s happening now.
What’s Happening in New York?
In New York, Governor Kathy Hochul approved a brand-new “Inflation Relief Refund” as part of the 2025 state budget. These checks—worth between $150 and $500—will go out automatically to eligible taxpayers starting in October 2025.
Here’s how the payments break down:
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Single filers making $75,000 or less: up to $200
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Single filers making $75,001–$150,000: up to $150
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Married couples filing jointly with income below $150,000: up to $400
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Joint filers earning $150,001–$300,000: up to $300
To qualify, residents must have filed their 2023 state tax return by April 15, 2025, and lived in New York for the full year in 2023. The good news? There’s no application process—if you qualify, your check or direct deposit will arrive automatically.
What’s California Doing?
California is issuing what it calls a second round of Middle-Class Refunds, part of a broader tax rebate plan using the state’s revenue surplus. While some checks have gone as high as $1,050, many fall in the $400–$500 range, particularly for joint filers in the middle-income bracket.
Eligibility is based on income and filing status. To get the payment, you must have:
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Filed your 2023 California state tax return
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Been a California resident in 2023
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Met the state’s income qualifications (generally under $150,000 for joint filers or $75,000 for single)
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Not received earlier Middle-Class Refund checks in 2022 or 2023
If you’re eligible, you likely already received your payment between April and May 2025. Most disbursements were completed by May 20, according to state officials. If you haven’t seen the funds yet, you can check your status through California’s official Middle-Class Refund portal.
Why Are States Sending These Payments?
Both California and New York reported strong tax revenues in the past year, thanks to inflation and increased consumer spending. Rather than let that money sit idle, state lawmakers chose to return a portion to residents, especially those who’ve felt the sting of rising rent, groceries, gas, and child care costs.
This isn’t federal money—it’s state-funded, and the goal is to provide fast, meaningful relief without requiring residents to jump through hoops.
What Should You Do Now?
For most people: nothing at all. These payments are processed based on your most recent state tax return, so as long as you filed and met the income rules, you’ll either receive a direct deposit or a check in the mail.
However, it’s smart to:
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Verify your bank info with the state revenue department
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Check your mail around the announced delivery dates
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Watch for scams—you’ll never be asked to “claim” your stimulus by phone or text
Key Dates
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California: Most payments were distributed by May 20, 2025
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New York: Payments will begin in October 2025
If you missed out this time—say you didn’t file your 2023 return on time—you’ll likely need to wait until next year’s relief programs. But for those who did everything right, up to $500 in tax-free money could be coming your way very soon.
