CA Giving Away $9.5B Next Month: What To Know

CALIFORNIA — Californians have been plagued by high prices on everything from groceries to gas over the last year. Starting next month, eligible residents will start receiving "inflation relief" tax refund payments, the state announced.

The state's Middle Class Tax Refund — which was approved as part of a 2022-2023 state budget surplus — will issue payments to more than 20 million Californians. Payments ranging from $200 to $1,050 will begin rolling out in October, according to the California Franchise Tax Board.

The funds will continue hitting bank accounts between October and January 2023. Payments will be issued either on a debit card or through direct deposit. Those who filed their taxes online can expect a direct deposit.

Under Gov. Gavin Newsom's proposal, the state will send out an estimated $9.5 billion to Golden Staters. The rebate is due to another historic state budget surplus.

READ MORE: Newsom Targets 6 Issues To Fund With Record $97.5B Budget Surplus

In March, the Democratic governor said that he planned to submit a revised budget to the state Legislature to "put money back in Californians' pockets to address rising gas prices."

The Golden State is home to the most expensive fuel in the nation. On Thursday, the average price for a gallon of regular gasoline was $5.43, compared with the national average of $3.69 per gallon of regular gas.

READ MORE: Inflation Reduction Act: 5 Benefits For California Residents

Who is getting a rebate?

To receive this rebate residents must have completed a 2020 California tax return by Oct. 15, 2021. Recipients must have been a California resident for six months or more of the 2020 tax year and must be a resident on the date that payment is issued.

Recipients also must not have been eligible to be claimed as a dependent in the 2020 tax year.

Determine your eligibility here.

How much will I get?

Single filers who make under $75,000 per year will get $350, joint filers with a combined income of under $150,000 will get $350 each and those with dependents will also receive an additional $350.

Anyone who makes more than $125,000 but less than $250,000 individually will be given $200. Another $200 would be given for any dependents.

Payments will not be given to single filers who make more than $250,000 a year or to joint filers or single-filers who make more than $500,000.

Estimate your amount using this tool.