As her second proposal for the 2025 State of the State, Governor Kathy Hochul today proposed a historic expansion of New York’s child tax credit for more than 2.75 million children. Governor Hochul’s 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.”
Governor Hochul’s proposed 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. 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.
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 household income of $170,000 would receive over $500 per year. That family would not have qualified for any credit under the current program.
This announcement builds on Governor Hochul’s legacy of lifting up New York’s families, including expanding the State’s child tax credit to more than 600,000 previously excluded children under four in 2023. With Governor Hochul’s plan unveiled today, a family with a three year old would benefit from up to $1,000 — money that can be put toward child care, food and other essentials — when they would have qualified for zero dollars only two years ago.
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. This includes New Yorkers throughout all corners of the State, as seen in the regional breakdown below.
| Region | EstimatedHouseholds Benefiting | EstimatedChildren Benefiting |
|---|---|---|
| New York City | 740,000 | 1.2 Million |
| Long Island | 215,000 | 355,000 |
| Mid-Hudson | 180,000 | 330,000 |
| Western New York | 118,000 | 207,000 |
| Finger Lakes | 104,000 | 180,000 |
| Capital Region | 86,000 | 145,000 |
| Central New York | 67,000 | 116,000 |
| Southern Tier | 51,000 | 89,000 |
| Mohawk Valley | 43,500 | 76,500 |
| North Country | 35,000 | 61,000 |
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, it is estimated that this one initiative could reduce poverty among children statewide by 8.2 percent, and when combined with other measures already advanced by Governor Hochul, including expanding subsidized child care, will see child poverty reduced by 17.7 percent. Governor Hochul has been advancing efforts to reduce child poverty since she took office in 2021 and created the Child Poverty Reduction Advisory Council (CPRAC) with the goal of significantly reducing child poverty. The CPRAC put forward recommendations in December 2024, which included the expansion of a child tax credit as the most impactful method by which to reduce poverty.
Sources: NY.gov , Midtown Tribune
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