As part of the FY 2026 state budget, New York Governor Kathy Hochul has signed legislation that will deliver historic tax relief to families through a major expansion of the state’s Child Tax Credit.
The enhanced program will benefit more than 1.6 million families, with payments starting as early as next year.
What is the expanded Child Tax Credit in New York?
Governor Hochul’s plan significantly boosts New York’s existing Child Tax Credit, offering:
- Up to $1,000 per child under age 4
- Up to $500 per child aged 4 through 16
This marks the largest expansion of the credit in New York history and will impact approximately 2.75 million children statewide.
RELATED: How would the GOP plan for Child Tax Credit impact families?
Who qualifies for New York’s Child Tax Credit?
Eligibility is determined by household income and number of qualifying children. The newly expanded credit:
- Removes income barriers for lower-income families previously excluded
- Expands access to middle-class families who were above prior thresholds
- Covers children from birth through age 16
For example:
- A family of four with a toddler and school-age child earning $110,000/year will receive $1,500
- A similar family earning $170,000/year will now qualify for over $500, even though they were previously ineligible
More than 187,000 children will become newly eligible under the updated rules.
How much will families save?
Governor Hochul’s office estimates the average credit will increase from $472 to $943 per child, delivering nearly $1,000 more in tax relief per eligible family. When combined with other budget measures, such as free school meals and inflation refund checks, some families may receive up to $5,000 in total relief during 2025–2026.
How will this impact child poverty?
The expansion is projected to:
- Reduce child poverty statewide by 8.2%
- Reduce overall child poverty in New York by 17.7% when combined with other measures
- Provide the strongest support to families with young children, who face the highest care costs
“These initiatives help address the rising cost of living for families across the income spectrum,” Governor Hochul said. “When I said your family is my fight, I meant it—and I’ll never stop fighting for you.”
What happens next?
Families do not need to apply separately for this benefit. The expanded Child Tax Credit will be applied automatically when eligible taxpayers file their 2025 state income tax returns. Payment timelines and final credit amounts will be based on family composition and income levels.
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