New York To Implement ‘Sweeping Increase’ Of Child Tax Credit In 2026

As New York lawmakers get ready to officially enact the 2026 state budget, New York families can look forward to a pretty big tax break in the new year.

Read More: New York Budget To Include Inflation Refund Checks And Tax Cut

Collectively, many cost-saving elements are built into the New York state budget, agreed upon by legislators last week. A $1 billion tax cut for the middle class & low-income families, inflation refund checks up to $400, and free school lunches for students K-12 are some of the cost-saving measures for New York taxpayers and families.

New York Child Tax Credit To Increase In 2026

For families, the biggest of all those measures could be what Governor Hochul's office calls a "sweeping increase" to the Child Tax Credit in 2026: eligible families will now get a tax credit of $1,000 for children under 4 years of age and a $500 credit for children 4-16 years old. The Governor's office says these changes will double this tax break for the average family.

The Times Union says this increase of the Child Tax Credit is the biggest ever and will "benefit around 1.6 million families and 2.75 million children" across New York.

The Governor's office estimates all of the tax breaks and cost-saving measures in the new budget would put $5,000 back in the pockets of New York families.

Considering the rising cost of necessities across the board and with the uncertainty of how new federal tariff policies could impact prices, these tax credits will be a welcome change for families in the Empire State.