State Budgets and Fiscal Measures for 2027

Finalized State Budgets and Tax Measures

Most U.S. states have completed their budget for the 2027 fiscal year. Several include tax return measures for citizens. States aim to manage shortfalls and underfunding in critical social programs. The National Conference of State Legislatures (NCSL) notes plateauing revenue growth as a factor, urging cautious budgeting.

Despite fiscal challenges, many states plan tax cuts, rebates, and refunds. Inflation has increased costs for essentials like housing, groceries, insurance, and utilities. Meanwhile, wage growth has lagged, impacting lower- and middle-income households.

California’s Green Energy Focus

The California Budget Act of 2026, signed in June, emphasizes green-energy rebates. Senate Bill 168 provides a $3,500 rebate for first-time electric vehicle buyers of cars under $50,000, and $1,750 for cars under $25,000.

New Jersey’s Property Tax Relief

Governor Mikie Sherrill approved New Jersey’s $60.7 billion budget, including $4.1 billion for property tax relief. Adjustments to the Stay NJ initiative reduce effective property tax for older residents. Income cap lowered from $500,000 to $200,000 while retaining up to $6,500 as the maximum benefit.

New York’s Energy Rebate

Governor Kathy Hochul’s budget includes $1 billion for the “Protecting Our Wallets Energy Rebate,” providing one-time relief to New Yorkers. Payments are distributed based on income and filing status, from September to December 2026. Joint filers under $150,000 receive $200, between $150,000-$300,000 receive $150, and single filers under $150,000 receive $100.

Pennsylvania’s Expanded Programs

Pennsylvania’s 2027 spending plan enhances tax credits and property tax rebate programs. The property tax/rent rebate program, supported by Governor Josh Shapiro’s office, has delivered over $1 billion through 1.84 million rebates in four years. In July, the Department of Revenue distributed 376,000 rebates, amounting to $226.4 million.

Other States’ Taxpayer Return Initiatives

States like South Dakota and Georgia also return funds to taxpayers. South Dakota raised sales taxes to finance property-tax relief. Georgia issues surplus tax refunds according to HB 1000, signed in March. The state sends $250, $375, and $500 to single filers, heads of households, and married joint filers respectively.

“Georgians know best how to spend their money, not the government,” stated Governor Brian Kemp in May.

For more information, contact Newsweek editors John Fitzpatrick and Gray R. Thomas.