California residents may be eligible for ‘inflation relief’ payments up to $350, in what Governor Gavin Newsom called a “middle-class tax rebate.”
The rebate was written into the 2022-23 state budget and announced by Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon Sunday, with payments expected to reach roughly $23 million Californians.
“California’s budget addresses the state’s most pressing needs and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries,” a joint statement from Newsom, Atkins and Rendon said Sunday. “The centerpiece of the agreement, a $17 billion inflation relief package, will offer tax refunds to millions of working Californians. Twenty-three million Californians will benefit from direct payments of up to $1,050.”
NEW: Millions of Californians will be receiving up to $1,050 as part of a NEW middle class tax rebate.
That’s more money in your pocket to help you fill your gas tank and put food on the table.
— Gavin Newsom (@GavinNewsom) June 27, 2022
While the governor angled the announcement as a $1,050 relief payment, that specific amount would only be the maximum sum for joint filers with a dependent, earning fewer than a combined $150,000 a year.
The payments will be distributed as follows:
- Earning fewer than $75,000: $350 payment
- Earning between $75,000 and $125,000: $250 payment
- Earning between $125,001 and $250,000: $200 payment
- Californians making more than $250,000 will not receive a payment
- Earning up to $150,000: $700 payment
- Earning between $150,001 and $250,000: $500 payment
- Earning between $250,001 and $500,000: $200 payment
- Joint filers earning more than $500,000 will not receive a payment
- Earning fewer than $75,000: additional $350
- Earning between $75,000 and $125,000: additional $250
- Earning between $125,001 and $250,000: additional $200
- Earning up to $150,000: additional $350
- Earning between $150,001 and $250,000: additional $250
- Earning between $250,001 and $500,000: additional $200
Newsom added that the relief package will suspend the state sales tax on diesel fuel, but not standard car fuel, as Newsom previously proposed due to increasing gas prices.
All rebates will be issued by either direct deposit, or mailed through debit cards, as they were for the $600 California “Golden State Stimulus” payments in 2021.
The payments are expected to begin going out in October.