New York’s Child Tax Credit could soon deliver more money to families.
As part of her 2025 State of the State, Governor Kathy Hochul will unveil a proposal to expand New York’s child tax credit for more than 2.75 million children. According to the Governor, her plan would give 1.6 million New York families an annual tax credit of up to $1,000 per child under age four and up to $500 per child from four through sixteen. This proposal represents the single largest boost to New York’s child tax credit in its history, and a significant increase above the value of the existing credit, which currently provides only up to $330 per child.
“From groceries to strollers to kids’ clothes, the cost of living and raising a family is still too damn high — and that’s why we’re proposing a massive increase in New York’s child tax credit to put up to $1,000 per kid back in the pockets of hardworking families,” Governor Hochul said. “As New York’s first mom governor, I know how hard it can be for parents to make ends meet — and I’ll never stop fighting to make New York more affordable for every family.”
The design of Governor Hochul’s proposed expansion will drive significant assistance to families with the youngest children and help families across the income spectrum. The average credit given out to families will double from $472 to $943. It will be instrumental in helping to address child poverty in New York State — and will also deliver relief to many middle-class families whose incomes are currently too high to qualify for the credit.
For example, under Governor Hochul’s expanded child tax credit, a family of four with a toddler and school-age child, and a household income up to $110,000, would receive a credit of $1,500 per year — representing nearly $1,000 more per year than what that family receives under the current program.
This proposed expansion will put money back in the pockets of around 1.6 million families overall statewide and lift up the financial fortunes of over 2.75 million children. A regional breakdown provided by the Governor’s Office can be seen below:
Additionally, while the full credit is available to jointly filing households up to $110,000, the expanded credit combined with its gradual rate of phaseout means even a family of four with a household income of $170,000 would receive over $500 per year. That family would not have qualified for any credit under the current program.
The credit will be phased in over two years, with households with children under four eligible for their $1,000 credit for the 2025 tax year and those with children over four eligible for the $500 credit for the 2026 tax year. The Empire State Child Credit is a refundable credit, which can either help offset taxes or be paid out directly to taxpayers as a refund.
When fully implemented, Governor Hochul estimates this one initiative could reduce poverty among children statewide by 8.2 percent.
Have all the Finger Lakes news from Finger Lakes News Radio delivered to your email every morning for FREE! Sign up by clicking here
