Major Tax Break Coming For New York Families

It is the one thing every New York family has in common: the cost of EVERYTHING has increased astronomically over the last few years. Add in New York State taxes, and it is simply expensive to support a family in the Empire State.

Read More: New York Budget To Include Inflation Refund Checks And Tax Cut

New York 2026 Budget To Include Major Tax Relief For Eligible New Yorkers

Finalizing the 2026 New York State budget was a little bit of a drawn-out process. But earlier this week, lawmakers finally agreed on a final plan, and a big part could mean thousands in financial relief for New York families trying to make ends meet.

Governor Hochul Reveals 'Money In Your Pockets' For NY Families

The 2026 budget includes Governor Hochul's  "Money in Your Pockets" agenda, including several tax breaks. Overall, the planned relief could put $5,000 back in the bank accounts of New York families.

According to the Governor's office, the plan will include a $1 billion tax cut for middle-class New Yorkers, along with previously announced inflation refund checks for 8.2 million eligible residents. These checks will be up to $400 for families and $200 for single filers.

The biggest savings for families could end up being the new Child Tax Credit structure.

New York Increases Child Tax Credit

Families will also see a major increase in the Child Tax Credit in 2026 as it will go up to $1000 for kids under 4 and $500 for school-age kids.

Outside of tax breaks, the new budget plan also provides free breakfast and lunch for students K-12, which could create an additional savings of $1,600 per child each year.

Who knows how much these measures will help in the long run? When you find savings in one place, another new expense always seems to gobble them back up! That said, every little bit helps - so we'll take it!