We Got It Done: Governor Hochul Celebrates Huge Budget Win to Put Nearly $5,000 Back in Pockets of Working Families

Expanding New York’s Child Tax Credit

The FY 2026 State Budget agreement includes Governor Hochul’s plan to 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 is the largest expansion of New York’s child tax credit in its history — and it will benefit approximately 2.75 million children statewide. Governor Hochul’s expansion of the credit will double the size of the average credit going out to families from $472 to $943.

This historic expansion of New York’s child tax credit will drive significant assistance to families with the youngest children and help families across the income spectrum. By eliminating a longstanding provision that restricted New York’s poorest families from accessing the credit while also delivering new relief to many middle-class families whose incomes were previously too high to qualify for the credit. As a result, more than 187,000 children will now be newly eligible for the credit.

The revamped credit will be instrumental in helping to address child poverty in New York State, cutting poverty among children statewide by 8.2 percent, and when combined with other measures already advanced by Governor Hochul, including drastically expanding subsidized child care, reducing child poverty by 17.7 percent.

For example, under New York’s newly 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. Additionally, the expanded credit means that even a family of four with household income of $170,000 would receive over $500 per year. That family would not have qualified for any credit under the current program.

Cutting Taxes for the Middle Class

The FY 2026 State Budget agreement includes Governor Hochul’s plan to cut taxes for more than 75 percent of all tax filers in New York. This huge win will deliver nearly $1 billion annually in tax relief to 8.3 million New Yorkers. This will provide savings to taxpayers earning up to $323,000 for joint filers.

Once the rate change is fully phased in, the middle class tax cut will deliver hundreds of dollars in average savings to three out of every four taxpayers in the state. This will bring taxes for the middle class to their lowest level in 70 years.