Inflation has made life more expensive for many people, but there’s good news for New Yorkers. The governor of New York has announced a new economic plan for 2026.
This plan includes tax cuts and stimulus payments designed to help families save money. Even better, most of these benefits will be automatically provided, so there’s no need to fill out extra forms.
Lower Taxes for Most Taxpayers
The plan includes tax cuts for 75% of taxpayers, which amounts to nearly $1 billion per year in savings.
This means 8.3 million people will pay less in taxes, with rates dropping to levels not seen in decades. Middle-class families stand to benefit the most from these changes.
Stimulus Checks That Require No Extra Work
If you live in New York, you could receive a stimulus check of up to $400. These payments, funded by a sales tax surplus, will be issued between October and November of 2025. Here’s how it works:
- If you’re single and earn up to $75,000 a year, your stimulus check will be $200.
- If you earn between $75,000 and $150,000, you’ll get $150.
For couples filing jointly:
- If your household income is up to $150,000, you’ll receive $400.
- If it’s between $150,000 and $300,000, the payment will be $300.
More than 8 million households are expected to benefit from these payments, which will either be deposited directly in bank accounts or mailed like a holiday gift.
Support for Families With Children
Families with children will also see improvements to the Child Tax Credit. Parents can now receive:
- Up to $1,000 per year for each child under 4 years old.
- $500 per year for children aged 4 to 16.
For example, a family with two young children could get an extra $2,000 per year. In total, this expansion will help 2.75 million children in the state.
Additionally, public schools will offer free breakfast and lunch to 2.7 million students. This not only saves families money but also ensures children have access to nutritious meals.
Biggest Tax Cuts in 70 Years
This plan includes the largest tax cuts in New York in seven decades, coming at a time when the cost of everyday items keeps rising. By combining tax cuts with cash refunds and improved social benefits, the plan aims to provide real relief.
For example:
- A single person earning $70,000 a year could save an extra $300 in taxes.
- A couple with young children could receive up to $3,000 in combined refunds and tax credits.
While the stimulus checks won’t arrive until late 2025, other measures in the plan are already starting. The Child Tax Credit is currently in effect, and the tax cuts will roll out gradually over time.
What to Keep in Mind
To ensure you receive these benefits, it’s important to file your taxes and keep your information updated with the state. Failing to do so could lead to missing out on these refunds and credits.
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Read more: Three States Offering Stimulus Payments in 2025
