State-Level Child Tax Credit
Fifteen states have enacted a child tax credit in addition to the federal credit. Eleven of the 15 states (California,Colorado,Maine,Maryland,Massachusetts,Minnesota,New Jersey,New Mexico,New York, Oregon andVermont) have made the child tax credit refundable. California, Colorado,Idaho,Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico,Utah and Vermont established a fixed limit for the tax credit ranging from $25 to $1,750 per qualifying child.
Eligibility requirements differ among states’ child tax credits. Oklahoma limits the child tax credit to families earning less than $100,000 per year. Colorado and New York have age restrictions for qualifying children (younger than age 6 in Colorado, at least age 4 in New York). Maryland's child tax credit is specifically for the lowest income families and restricts eligibility to those earning $6,000 or less per year. Maryland also restricts eligibility to families with children with disabilities. All eight states allow filers to claim both the state and federal child tax credit.
Similar to the federal child tax credit, state child tax credits are a strategy for improving family economic stability and often have bipartisan support. The COVID-19 pandemic created or compounded economic burdens for many families, and recent legislative trends suggest states are increasingly considering child tax credits.
Since 2019, 14 states (Connecticut, Hawaii, Illinois, Iowa, Kansas, Michigan, Missouri, Montana, Nebraska, New Hampshire, North Carolina, Oregon, Virginia and West Virginia) have introduced legislation to create state-level child tax credits.Connecticutpreviously established a one-time child tax rebate that expired in 2022. In addition to the state dependent credit,Arizonaestablished a one-time child tax rebate which will expire in tax year 2024.Illinoispassed legislation to create a state child tax credit dependent upon voter approval of a Senate Joint Resolution to provide funds. However, voters did not approve the resolution and the state’s child tax credit has not been implemented. Additionally, several states have introduced legislation to expand their current state child tax credits.
For enacted legislation related to child tax credits, please see NCSL’s Child Tax Credits Enactments.
| State | Program Name | Refundable | Tax Credit Amount | Eligibility |
|---|---|---|---|---|
Arizonaa | Dependent Credit | No | $100 for dependents under the age of 17 | Dependents under the age of 17 |
California | Young Child Tax Credit | Yes | $1,000 to each qualifying family with earnings under $25,000, reduced credit of less than $1,000 to each qualifying family with earnings between $25,000 to $30,000 | Only available for children under age 6 and must qualify for the California Earned Income Tax Credit |
Coloradob | Child Tax Credit | Yes | Up to $1,200 per qualifying child (depends on income and filing status) | Only available for children under the age of 6 |
Idaho | Child Tax Credit | No | $205 per qualifying child | Qualifying child is defined by section 24(c) of the Internal Revenue Code |
Mainec | Dependent Exemption Tax Credit | Yes | $300 per qualifying child and dependent | Dependent must be under the age of 17 |
Maryland | Child Tax Credit | Yes | $500 per child | Child under the age of 17 must have a disability and taxpayers federal adjusted gross income must be $6,000 or less |
Massachusettsd | Household Dependent Tax Credit | Yes | $180 for one dependent, $360 for 2 or more dependent | "Dependents" are considered children under 12 years old, adults 65 or older, and anyone with a disability |
Minnesota | Child Tax Credit | Yes | $1,750 per qualifying child | The credit phases out for individual income over $29,500 and $35,000 for taxpayers filing jointly. |
New Jerseye | Child Tax Credit | Yes | $500 per child under the age of 6 for qualified taxpayers with income no greater than $30,000 | The credit is phased out by $100 for different income brackets. |
New Mexico | Child Income Tax Credit | Yes | $75 to $175 per qualifying child, depending on income | Any minor child or stepchild of the taxpayer who would be a qualifying child for federal income tax purposes |
New Yorkf | Empire State Child Tax Credit | Yes | The greater of: 33% of the portion of the federal child tax credit and federal additional child tax credit attributable to qualifying children OR $100 multiplied by the number of qualifying children | Child must be under the age of 17 and must qualify for the federal child tax credit |
Oklahomag | Child Tax Credit | No | 5% of federal credit | Taxpayers federal adjusted gross income cannot exceed $100,000 for married couples filing jointly |
Oregonh | Child Tax Credit | Yes | $1,000 per child under the age of 5 | Families earning more than $30,000 are ineligible |
Utah | Child Tax Credit | No | $1,000 per child between the ages of 1 and 4 years old. | Decreases by $10 for every $1 in income that exceeds a certain income threshold depending on filing status |
Vermonti | Child Tax Credit | Yes | $1,000 per child under the age of 5 | Taxpayers must have income below $125,000. |
Notes:
a—Arizona:Taxpayers with dependents above the age of 17 are also eligible to receive an additional $25 per dependent. For example, for taxpayers caring for family members with disabilities or healthcare needs.
b—Colorado:The tax credit for individual taxpayers with income less than $25,000 is $1,200. The credit is $600 for taxpayers with income between $25,000 and $50,000 and $200 for taxpayers with income between $50,000 and $75,000.
c—Maine:Prorated for non-resident and part-year resident taxpayers. State statute specifies the dependent exemption tax credit to be used as a tax credit.
d—Massachusetts:The state also offers a refundable Dependent Care Tax Credit for expenses, but taxpayers can only choose the Dependent Care Tax Credit or the Household Dependent Tax Credit, not both.
e—New Jersey:For taxpayers with income between $30,000 and $40,000 the credit is $400 per child. For taxpayers with income between $40,000 and $50,000 the credit is $300 per child. For taxpayers with income between $50,000 and $60,000 the credit is $200 per child. For taxpayers with income between $60,000 and $80,000 the credit is $100 per child.
f—New York:Tax filers with qualifying children and incomes under $110,000 for married couples and $75,000 for singles, who did not claim the federal child tax credit but meet all other eligibility requirements shown above, receive a credit of $100 multiplied by the number of qualifying children.
g—Oklahoma:Filers can choose between this or another option, 20% of the credit for childcare expenses allowed under the Internal Revenue Code of the United States or 5% of the child tax credit allowed under the Internal Revenue Code, whichever amount is greater.
h—Oregon:Families earning less than $25,000 are eligible for the full credit which is reduced until it is fully phased out for families earning more than $30,000.
i—Vermont:The tax credit will phase out at a rate of $20 per every $1,000 earned over the $125,000 threshold.
Source: StateNet bill tracking current as of April 2024.
