Many California Inflation Relief Debit Cards Haven't Been Activated: What You Should Know

California license plate with dollar signs on it

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California's Middle Class Tax Refund (MCTR) program provided eligible Californians with one-time inflation relief payments. The California "stimulus" payments began two years ago and continued until January last year. However, despite more than 9.5 million debit cards containing refund money being sent to eligible Californians, data show millions of dollars in benefits remain unspent.

As a result, the California Franchise Tax Board (FTB) has urged residents to activate their Middle Class Tax Refund debit cards to access this financial aid.

Here’s more of what you need to know.

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Unspent California inflation relief

The California Middle-Class Tax Refund (MCTR) was created to assist middle-class families with high housing costs, healthcare, and everyday necessities.

Eligible California residents automatically received relief payments between October 2022 and January 2023.
MCTR payments typically ranged from $200 to $1,050, with the exact amount based on income, filing status, and number of dependents.

California sent funds to residents through direct deposit or MCTR debit cards. FTB data indicates that 9.6 million debit cards were distributed, but millions in unspent benefits reportedly remain because many debit cards have yet to be activated. (According to a March 7 audit report, "more than one million debit cards, worth approximately $611 million in payments, had not yet been activated by their recipients as of January 2024.")

To address this, the FTB reminds residents to activate their MCTR debit cards. The agency also encourages those who haven’t received their cards to contact the agency to ensure they get their MCTR benefits.

Some residents might not know the funds on the cards can be transferred to a bank account of their choice. The FTB also points out that the MCTR debit cards are valid for three years from the date of issuance.

California Middle Class Tax Refund: What to Do

According to the FTB, if you received a Middle Class Tax Refund (MCTR) debit card and have not activated it, you may have received or will receive an activation reminder letter with instructions on how to do so.

If you need assistance with activation, replacement, or lost or stolen MCTR cards, call 1-800-240-0223.

If you have not received your debit card and believe you are eligible, ensure your address is updated with FTB. Visit the FTB’s Help with the Middle Class Tax Refund page for instructions on updating your address.

Is California MCTR taxable?

The FTB says the MCTR payment is not taxable for California state income tax purposes. Also, as Kiplinger reported, the IRS announced last year that it would not tax California Middle-Class Tax Refunds at the federal level.

Kelley R. Taylor is the senior tax editor at Kiplinger.com, where she breaks down federal and state tax rules and news to help readers navigate their finances with confidence. A corporate attorney and business journalist with more than 20 years of experience, Kelley has helped taxpayers make sense of shifting U.S. tax law and policy from the Affordable Care Act (ACA) and the Tax Cuts and Jobs Act (TCJA), to SECURE 2.0, the Inflation Reduction Act, and most recently, the 2025 “Big, Beautiful Bill.” She has covered issues ranging from partnerships, carried interest, compensation and benefits, and tax‑exempt organizations to RMDs, capital gains taxes, and energy tax credits. Her award‑winning work has been featured in numerous national and specialty publications.