3 States Giving Out Stimulus-Style Tax Rebates This Fall

It’s been more than two years since the last round of federal stimulus checks, but at least three states are still sending out similar tax rebate payments of their own this fall.

State “stimulus checks” emerged as a trend in 2022 as governors and state lawmakers moved to kick money back to residents to help them deal with inflation and the lingering economic impacts of the pandemic. These programs were possible in part because federal money and higher-than-expected state revenues last year led to state budget surpluses and record financial reserves.

Three states — Alabama, Arizona and Virginia — are still giving out one-time tax rebates in the final months of 2023, which is unique because most states that issued these stimulus check-style payments concluded those programs last year.

A handful of other state relief programs wrapped up recently: The last day to claim Georgia’s surplus tax refund was Monday, Oct. 16. The deadline to postmark applications for Montana’s property tax rebate of up to $675 was Oct. 2. Minnesota sent out about 2.1 million payments in August and September for its one-time $260 rebate program for each eligible taxpayer, giving out nearly $1 billion total, according to the Minnesota Department of Revenue.

States giving out stimulus check-style tax rebates in 2023

State tax rebate programs vary not only in the dollar amount but also in terms of eligibility criteria. Programs may have requirements based on factors such as tax filings, income and dependents. They’re similar to the COVID-19 stimulus checks because they offer one-time relief to residents to address hardship.

These are the three stimulus check-style tax rebates available this fall:

Alabama

Alabama is expected to soon begin sending tax rebates of $150 for individuals and $300 for couples. Nearly 2 million residents who filed 2021 tax returns will receive money. Taxpayers will receive direct deposits if the Department of Revenue has their bank info, otherwise, checks will be mailed to their addresses.

The rebates are meant to partially offset sales taxes that residents paid on grocery taxes that contributed to a surplus in the state’s Education Trust Fund. The rebates are a one-time tax credit, but residents will benefit from lower taxes going forward. According to the legislation that created the tax credits, the Department of Revenue cannot begin issuing them until November 30.

The state reduced its grocery sales tax from 4% to 3% on September 1 as the surplus had reached $2.8 billion, and the tax could be lowered to 2% next year.

Arizona

Taxpayers in Arizona who have dependents are set to receive rebates by November 15.

Arizona’s tax rebates will be $250 per dependent for kids under 17, up to a maximum of $750 for three dependents. Taxpayers with older dependents will get $100 per dependent. The Arizona Freedom Caucus negotiated for the rebates earlier in the year during budget negotiations, arguing that some of the state’s surplus funds should help residents deal with inflation.

About 750,000 taxpayers who filed 2021 tax returns will benefit from the rebates, contingent on them having claimed a specific credit on their return for that year. The state will send the money out via direct deposit or check.

Virginia

The state of Virginia is giving $200 tax refunds to individuals, provided the resident had tax liability in had in 2022 — meaning they owed money to the state that year after subtracting tax credits, deductions and subtractions. For joint filers, the one-time tax rebate is $400.

Residents who filed their taxes by July 1 will get their refunds by November 30. The deadline to file 2022 taxes to get the rebate is November 1.

Here’s where you can find more details about Virginia’s 2023 tax rebate.

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