When most people think about tax season, they focus on their federal return. But if you live in New York, your state return deserves just as much attention — especially this year. There are several New York State and New York City tax credits that could put real money back in your pocket, and some of them have recently been expanded.
Here’s a breakdown of the credits every New Yorker should know about when filing in 2026.
Empire State Child Credit (Expanded for 2026)
This is the big one this year. Governor Hochul tripled the maximum credit for families with young children. For tax year 2025 (filed in 2026), eligible families can receive up to $1,000 per child under age 4 — up from $330. Children ages 4 through 16 still qualify for up to $330 per child.
New York also eliminated the minimum income requirement, meaning the state’s lowest-income families can now access the full credit as a refund. The full credit is available to single filers earning up to $75,000 and joint filers up to $110,000, with a gradual phase-out that allows families of four earning up to $170,000 to still receive a partial credit.
If you have kids, this is worth checking — the savings can be significant.
New York State Earned Income Tax Credit (EITC)
If you qualify for the federal Earned Income Tax Credit, you automatically qualify for the New York State version, which is worth 30% of your federal credit. For full-year residents, this credit is fully refundable — meaning you can receive the unused portion as a refund even if you don’t owe taxes.
Combined with the federal EITC and the NYC EITC (if applicable), eligible New Yorkers can receive an average of $2,300 in total EITC benefits, with the combined credit worth up to $11,000.
New York City Tax Credits
If you’re a full- or part-year NYC resident, there are additional city-level credits available, including the NYC Household Credit, the NYC School Tax Credit, and the NYC Earned Income Tax Credit. These are in addition to the state credits and are claimed on your state return.
STAR Credit (Homeowners)
If you own your home in New York, you may be eligible for the STAR (School Tax Relief) program, which reduces your school property taxes. There are two levels: Basic STAR for homeowners with household income up to $250,000 (for the credit) or $500,000 (for the exemption), and Enhanced STAR for seniors 65 and older with income up to $110,750 for 2026.
A few important changes for 2026: New York will now automatically upgrade eligible homeowners from Basic to Enhanced STAR when they turn 65 — no application needed. And income eligibility is now based only on resident owners, not all owners listed on the deed.
If you haven’t registered for the STAR credit yet, you can do so through the NYS Homeowner Benefit Portal.
Child and Dependent Care Credit
If you paid for childcare so you could work, you may qualify for a New York State credit on top of the federal credit. The state credit is a percentage of the federal credit, based on your income.
College Tuition Credit or Deduction
Full-year New York State residents who paid qualified tuition expenses for themselves, a spouse, or a dependent at an eligible institution may claim either a credit of up to $400 per student or an itemized deduction of up to $10,000. The credit is usually the better option for most filers.
New York State Tax Rate Reductions (Coming in 2026)
While not a credit, it’s worth noting that New York has approved income tax rate reductions starting with the 2026 tax year. Rates for taxpayers in lower and middle brackets will decrease — for example, the range drops from 4%–6% to 3.9%–5.9% for joint filers with income under $323,200. Further reductions are scheduled for 2027.
Inflation Refund Credit (One-Time for 2025)
For tax year 2025, New York is offering a one-time inflation refund credit for eligible residents. To qualify, you must have been a full-year resident in 2023 with a New York adjusted gross income of $300,000 or less (for joint filers). This was part of Governor Hochul’s affordability agenda and delivered over $2.2 billion in relief to 8.3 million New Yorkers.
Don’t Leave Money on the Table
Many of these credits go unclaimed every year simply because people don’t know about them. A qualified tax professional can review your situation and make sure you’re taking advantage of every credit you’re entitled to — at both the state and federal level.
At Keltron Tax & Wealth Management Corp., we specialize in helping individuals and families in Queens and NYC minimize their tax burden and maximize their refunds. We’ve been doing this since 1993, and we know New York tax law inside and out.
Call us at (718) 956-0500 or visit us at 43-20 30th Ave, Astoria, Queens, NY 11103. Let’s make sure you’re getting every dollar you deserve.
