In a big win for working families, New York State is expanding its Child Tax Credit, with payments increasing up to $1,000 per child under a new state budget. This change is part of a larger financial plan that promises major support for middle- and low-income families.
What Is the Child Tax Credit?
The Child Tax Credit (CTC) is a government program that helps parents cover the costs of raising children. It’s available at both federal and state levels.
At the federal level, families can receive up to $2,000 per child under the age of 17, depending on their income and the number of dependent children.
In addition, 16 states, including New York, offer their own versions of the Child Tax Credit to give families extra financial help.
What’s Changing in New York?
Under Governor Kathy Hochul’s new budget for 2026, the New York Child Tax Credit is getting a major boost:
$1,000 per child for families with children under age 4
$500 per child for children aged 4 to 16
Previously, the maximum was just $330 per child, so this new change nearly triples the benefit for some families.
The updated Child Tax Credit will help millions of families with children and is a part of Hochul’s larger goal to lower the cost of living and improve the lives of everyday New Yorkers.
Governor Hochul’s Budget Plan: A Full Support Package
Governor Hochul’s $254 billion budget is not just about tax credits. It also includes several helpful benefits for working families and residents:
$2.2 billion investment to make child care more accessible across the state
$2 billion in Inflation Refund checks with up to $400 per family
$340 million to provide free breakfast and lunch to every K–12 student, saving families an average of $1,600 per child
A $1 billion tax cut for middle- and lower-income families, leading to the lowest tax rates in nearly 70 years
Governor Hochul said:
“I promised New Yorkers to fight like hell to put money back in their pockets… This budget is going to make a real difference for New York families.”
The full plan is expected to be passed by lawmakers within the coming days.
Families in New York are about to receive some much-needed financial relief. With the Child Tax Credit increasing to up to $1,000 per child, along with other programs like Inflation Refunds, tax cuts, free school meals, and expanded child care, this budget promises real support for those who need it most. It’s clear that New York’s government is making strong moves to reduce costs and improve family life across the state.
