State-Level Child Tax Credit
Twelve states have enacted a child tax credit in addition to the federal credit. Nine of the 12 states (California, Colorado, Connecticut, Maryland, Massachusetts, New Jersey, New Mexico, New York and Vermont) have made the child tax credit refundable. California, Connecticut, Idaho, Maine, Maryland, Massachusetts, New Jersey, New Mexico and Vermont established a fixed limit for the tax credit ranging from $100 to $1,000 per qualifying child. Colorado developed a tiered system based on income levels and is calculated by a percentage of the federal child tax credit.
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 (Arizona, 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. Illinois passed 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 Child Tax Credits as of April 2023
State |
Program Name |
Refundable |
Tax Credit Amount |
Eligibility |
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. |
Colorado |
Child Tax Credit |
Yes |
5% to 30% of the federal credit for each qualifying child (depends on income and filing status). |
Only available for children under age 6. |
Connecticut |
Child Tax Rebate |
Yes |
$250 per child, up to $750 total. |
Rebate is phased out at a rate of 10% for every $1,000 over certain income thresholds: $100,000 for single filers, $160,000 for head-of-household and $200,000 for joint filers. |
Idaho |
Child Tax Credit |
No |
$205 per qualifying child. |
Qualifying child is defined by section 24(c) of the Internal Revenue Code. |
Maine* |
Dependent Exemption Tax Credit |
No |
$300 per qualifying child and dependent |
|
Maryland |
Child Tax Credit |
Yes |
$500 per child. |
Child under the age of 17 must have a disability and taxpayer's federal adjusted gross income must be $6,000 or less. |
Massachusetts |
Household Dependent Tax Credit |
Yes |
$180 for one dependent, $360 for two or more dependents. |
"Dependents" are considered children under 12 years old, adults 65 or older and anyone with a disability. |
New Jersey* |
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 York* |
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 at least age 4 and must qualify for the federal child tax credit. |
Oklahoma* |
Child Tax Credit |
No |
5% of federal credit. |
Taxpayer's federal adjusted gross income cannot exceed $100,000 for married couples filing jointly. |
Vermont* |
Child Tax Credit |
Yes |
$1,000 per child under the age of 5. |
Taxpayers must have income below $125,000. |
Notes
- 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.
- 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.
- 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.
- 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.
- Oklahoma: Filers can choose between this or another option, 20% of the credit for child care 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.
- Vermont: The tax credit will phase out at a rate of $20 per every $1,000 earned over the $125,000 threshold.
Source: State Net bill tracking current as of March 2023.