Governor Hochul announces major expansion of the Empire State Child Tax Credit to deliver more financial relief to New York families

New York – Governor Kathy Hochul is urging families across New York to take full advantage of a significantly expanded child tax credit that state leaders say could deliver meaningful financial relief to millions of households, particularly those raising young children or living on lower incomes.

The program, formally known as the Empire State Child Credit (ESCC), is a refundable tax credit that can either reduce a family’s state tax bill or be paid out directly as cash back through a tax refund. With the 2026 tax filing season now open, state officials are emphasizing that the credit is larger, more inclusive, and easier to access than at any point in New York’s history.

“The Empire State Child Credit delivers a vital financial boost to New York families,” Governor Hochul said. “Now, after the largest expansion of the credit in New York history, more New Yorkers have access to the credit than ever, which will put money directly in families’ pockets and help make our state more affordable for millions of recipients.”

The expansion, enacted last year by the Governor and the State Legislature, represents a major shift in how New York supports families with children. Under the new structure, eligible families filing for Tax Year 2025 can receive up to $1,000 per child under the age of four, and up to $330 per child between the ages of four and sixteen. That alone marks a substantial increase from prior years, particularly for households with very young children, who often face higher childcare and living expenses.

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Even more changes are coming in the following year. For Tax Year 2026, the credit for children ages four through sixteen will rise to as much as $500 per child, while families with children under four will continue to qualify for up to $1,000 per child. State officials say this phased expansion reflects a growing recognition of the financial pressures families face at different stages of child development.

One of the most impactful reforms, however, targets families who were previously left out of the full benefit. New York has eliminated a long-standing minimum income requirement that once prevented the state’s poorest households from accessing the entire credit. Under the updated rules, families with little or no income can now receive the full value of the ESCC as a refund, even if they do not owe any state income tax.

At the same time, the state adjusted how the credit phases out at higher income levels. While the full credit remains available to married couples filing jointly with incomes up to $110,000, the expanded structure now allows many middle-class families who previously earned too much to qualify for anything to receive at least a partial benefit. For example, a family of four with one child under four and one child over four, earning $170,000 a year, can now receive more than $500 annually—something that was not possible under the prior program.

Taken together, these changes are expected to dramatically increase the reach of the credit. State analysts say the average benefit for eligible families will nearly double, rising from $472 to $943. Independent researchers estimate that if all eligible households claim the expanded ESCC, child poverty in New York could drop by more than eight percent from this single initiative alone.

Eligibility for the refundable Empire State Child Credit in 2026 is based on several basic criteria. Families must be full-year New York State residents, have at least one qualifying child under the age of 17 as of December 31, 2025, and file a New York State income tax return. A valid Social Security Number or Individual Taxpayer Identification Number is required for both the filer and each child claimed.

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Families with incomes below $75,000 for single filers or heads of household, and below $110,000 for married couples filing jointly, are eligible for the maximum credit amount. Even families earning above those thresholds may still qualify for a reduced benefit under the expanded phase-out rules.

For lower-income New Yorkers, the state is emphasizing that filing a tax return is essential—even for those who do not owe taxes or have very little income. Individuals with no income or income below $4,000 can still receive the maximum credit as cash back by filing a return. Those earning more than $4,000 may also receive the credit as a refund or use it to offset any small tax liability they may have.

New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said the expansion represents a meaningful step toward easing financial strain for families across the state.

“We are grateful to Governor Hochul and the State Legislature for increasing and expanding New York’s Empire State Child Credit,” Guinn said. “The expanded Empire State Child Credit will provide a much-needed boost to household budgets for millions of families across New York State and will be especially impactful for families with young children who have little or no income. But it’s important that those families know they need to file a New York State income tax return in order to receive the money and that doing so will not impact other benefits they may receive, including SNAP and Medicaid. We will be reaching out to families to make sure they know about this important benefit and ask community partners to do the same.”

To ensure that eligible families are aware of the expanded credit, Governor Hochul has directed a coordinated, whole-of-government outreach effort. Agencies such as OTDA are developing targeted materials aimed at low-income households, particularly those already receiving assistance through programs like SNAP. State officials point to national survey data showing that many households who do not regularly file taxes are still connected to other public benefits, making outreach through those systems especially important.

Officials also stressed that receiving the Empire State Child Credit will not affect eligibility for Medicaid, SNAP, Supplemental Security Income, cash assistance, or housing aid. Additionally, if families choose to save their refund, it will not count against asset limits for a full year, removing another barrier that previously discouraged some households from claiming tax benefits.

The 2026 tax filing season officially opened on Monday, January 26. State officials are encouraging eligible New Yorkers to file electronically, noting that e-filing is the fastest and safest way to submit returns and receive refunds. Many families who qualify for the ESCC may also be eligible for free tax filing services offered through the New York State Department of Taxation and Finance.

The expanded Empire State Child Credit is a central pillar of Governor Hochul’s broader Affordability Agenda, which aims to reduce everyday costs for New Yorkers. Other initiatives under that umbrella include middle-class tax cuts that have brought rates to their lowest level in seven decades, inflation rebate checks that delivered more than $2.2 billion to millions of residents, and universal free school meals that save families an estimated $1,600 per child each year.

As tax season begins, state leaders say the message is simple: families should file, check their eligibility, and claim the credit they are entitled to. With expanded benefits now reaching across income levels, the ESCC is being positioned as one of the most direct tools New York has to put money back into family budgets and improve long-term financial stability for children statewide.