4 US States That Are Issuing Tax Relief In December

Inflation's impact on housing, food, health care, and transportation has made life in the U.S. so expensive that there are only a handful of places where retirees can live on Social Security alone. It's not even clear if future generations will be able to afford to buy a home, and in a November 2025 ADP Research survey 64% of employee respondents said they were under consistent financial strain. This included 58% of upper managers who told ADP they were barely making ends meet.

In addition, FICO revealed that America's credit score fell three points from 718 in April 2023 to 715 in April 2025 as young adults struggle to pay off their student loans. Meanwhile, an alarming number of Americans are paying more than $1,000 a month for their cars, as higher costs for new cars stretch consumer budgets. With all of this mind, it's safe to say many Americans are experiencing financial strain that is set to only become worse with the holiday shopping season. Fortunately, there are a few states offering tax relief in 2025 that could help. Four states in particular are offering some form of state tax rebate programs for their residents, with payments for many recipients due to arrive in December.

According to the Missouri Economic Research and Information Center (MERIC), New York is the No. 6 most expensive place out of 50 states, Washington, D.C., and Puerto Rico, as of Q3 2025. As such, rising cost of living was cited as a primary reason for why New York state decided to send inflation checks to over eight million New York residents. In order to receive a check, a resident must have filed a New York state income tax return in 2023 and not be claimed as a dependent, according to the New York State Department of Taxation and Finance. Checks range from $150 to $400, depending on filing status. Also, the maximum annual income a New Yorker can claim, and still receive a rebate check with, is $150,000 for a single-filer or head of household or $300,000 for a married joint return or qualified surviving spouse.

New York state officials started sending checks in September 2025, but checks are being sent at different times on a rolling basis through the end of the year. The Utica Observer Dispatch reported in December 2025 that the sooner a household filed its 2023 tax return, the sooner they'll receive their check in 2025 (or possibly early 2026).

Alaska is one of nine states without an income tax. And since the late 1970s, those who live in this state might be eligible to receive a stimulus payment every year. Known as the Permanent Dividend Fund, the annual payments come from investments on the state's oil revenues. To qualify, a recipient must have lived in Alaska for almost the entire previous year, pledge to remain in the state indefinitely, and not commit any felonies, per the state's PDF webpage. However, these requirements might be easier said than done since Alaska is the No. 5 most expensive place to live in the U.S., per MERIC.

In May 2025, Alaska's state legislature determined set the 2025 dividend payment at $1,000. The first of those payments were slated to be sent in October 2025, the Anchorage Daily News reported. However, some residents won't receive their money until December 18, 2025 or January 15, 2026, depending on their application.

In 2022, New Jersey lawmakers passed the Affordable New Jersey Communities for Homeowners and Renters program, also known as ANCHOR. Its purpose is to provide some rebate tax relief for not just homeowners but also renters in a place that, as of Q3 2025, was the No. 8 most expensive in the country, per MERIC.

According to the New Jersey Treasury's Division of Taxation, homeowners aged 65 and over who made $150,000 or less in 2024 are entitled to $1,750 while those who earned between $150,001 and $250,000 can receive $1,250. Homeowners below the age of 64 can get a benefit of $1,500 if they make $150,000 a year or less or $1,000 if their incomes were between $150,001 and $250,000. Renters, on the other hand, can receive $450 if they are aged 64 and younger or $700 if they are 65 years or older. Renters and owners 65 and older who were not required to file a state income tax return can get a tax credit of $50.

Residents should get their payments within 90 days of filing for their ANCHOR benefit. Payments began on a rolling basis in September based on when an application was submitted. This means that those who applied closer to the program's October 31 deadline likely won't receive their checks until January 2026.

Pennsylvania is not the most expensive place to live. In fact, MERIC ranked Pennsylvania as the No. 25 most affordable place out of all 52 states and territories. Nevertheless, the Keystone State's has provided property tax and rent relief for mainly older Pennsylvania residents since 1971 in the form of the Property Tax/Rent Rebate (PTRR) Program.

Per the Pennsylvania Department of Revenue, base rebates of between $380 and $1,000 are offered to those who make below $46,520 a year and who are 65 years of age or older, 50 years of age or older if a surviving spouse, or 18 years or older for those with disabilities. Homeowners residing in Philadelphia, Scranton, or Pittsburgh can get an additional rebate of between $190 and $500 if they earn $31,010 or less a year, and more than 15% of their income goes towards property taxes. PTRR payments are still being sent to late applicants in December 2025 and into early 2026.