These States Are Offering Tax Rebates or Refunds Under New Budgets (Is Yours One?)

Several states are offering residents tax rebates or refunds under new budgets, which might help put extra cash in your pocket. States have finalized their 2027 fiscal-year budgets, many of them navigating multi-billion-dollar shortfalls and slowing revenue growth. However, a handful of states are sending funds back to residents as inflation continues to increase the cost of essentials, straining many households' budgets.

The tax rebates and refunds are available only in certain states, so see if yours is one of them.

1. New York

New York taxpayers may receive a one-time "Protecting Our Wallets Energy Rebate." According to Governor Kathy Hochul, the $1 billion rebate is designed to provide relief to millions of New Yorkers.

Checks are scheduled to be mailed between September and December of 2026, and they're based on taxpayers' income and filing status. Joint filers who earn less than $150,000 may receive a $200 refund. Joint filers who earn between $150,000 and $300,000 may receive $150, while single filers who earn less than $150,000 may receive $100.

2. New Jersey

New Jersey's 2027 budget includes more than $4.1 billion for property tax relief programs for residents.

One such program, the Stay NJ program, is designed for older homeowners. The program was created in 2025 to help older homeowners keep their homes by reducing their tax burden.

The program's income cap was lowered for 2027; while previous homeowners making up to $500,000 could qualify, the cap has been lowered to $200,000. Homeowners must have been age 65 or older in 2025 and must have owned and lived in a home for the duration of 2025. Qualifying homeowners may receive an annual benefit up to $6,500.

3. Pennsylvania

Pennsylvania's 2027 budget includes expanded tax credits and money for the state's long-running Property Tax and Rent Rebate (PTRR) program. The program is designed for seniors and people with disabilities, and in four years it has issued 1.84 million rebates amounting to over $1 billion.

On June 30, the Shapiro Administration announced that the program would issue $226.4 million in rebates to nearly 376,000 Pennsylvanians, including seniors, widows, widowers, and residents with disabilities.

During Shapiro's first year in office, he worked to expand the program, increasing the maximum standard rebate from $650 to $1,000, and raising income eligibility limits to $48,110. Pennsylvanians aged 65 and older, widows and widowers aged 50 and older, and people with disabilities aged 18 and older must reapply for a rebate every year.

4. Georgia

Georgia is issuing surplus tax refunds under HB 1000. Georgia first issued these refunds to qualifying taxpayers who filed 2024 and 2025 returns on time. Refunds range from $250 to $500 depending on a resident's tax filing status.

5. California

The California Budget Act of 2026 included funding for green energy rebates to help counteract the loss of federal incentives and encourage the use of green energy. The budget funded Senate Bill 168, a bill that provides rebates for electric vehicle purchases.

Senate Bill 168 funds the MyFirstEV program, which provides first-time electric vehicle purchasers with automatic rebates right at the dealership. Electric vehicle buyers may receive $3,500 off of a new vehicle with an MSRP up to $50,000. Alternatively, buyers may receive $1,750 off of a used electric vehicle sold for up to $25,000.

6. South Dakota

Other states are working to save homeowners money without ever issuing specific rebates. In March, South Dakota Governor Larry Rhoden signed two bills creating "the largest property tax cut in South Dakota history."

One bill increased the state sales tax from 4.2% to 4.5% for 2027. The revenue generated may allow the state to reduce homeowner property taxes by 14% to 22%, which would amount to a $548 savings on a home valued at $325,000.

The second bill allowed counties to impose sales taxes, rather than relying on property taxes as they currently do. That bill may result in another property tax reduction of 10% to 25%, and homeowners may average a savings of $660.

Where the refunds are coming from

Some of these rebates come directly from new 2027 state budgets that allot those specific funds. Other states, such as Georgia and South Dakota, are enacting separate measures that help create rebates or lower costs for residents.

Bottom line

The tax rebates and refunds available vary by state, and the process of applying for and receiving those rebates and refunds also varies. Check with your state's revenue department for information on available rebates, as well as any eligibility rules and application deadlines. Several of these rebates require you to take action to receive them, and some windows are still open to apply.

A rebate or refund may provide some welcome relief as the country continues to face the effects of inflation and high energy prices resulting from the conflict with Iran. This extra bit of money may help stretch your retirement dollars further, so be sure to apply if you're eligible.

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