Increases amount of child tax credit in taxable years 2026, 2027, and 2028.

Bigger New Jersey tax credits for parents

For tax years 2026, 2027, and 2028, New Jersey increases its yearly child tax credit. Resident taxpayers qualify for each child under age six at year-end who qualifies for New Jersey's child deduction. Your New Jersey taxable income must be $80,000 or less, regardless of filing status. At income of $30,000 or less, the credit rises from $1,000 to $1,250 per child. Over $30,000 through $40,000, it rises from $800 to $1,000. Over $40,000 through $50,000, it rises from $600 to $750. Over $50,000 through $60,000, it rises from $400 to $500. Over $60,000 through $80,000, it rises from $200 to $250. The lower amounts apply outside those three tax years. Any credit left after paying your state income tax is refunded to you. Married taxpayers must file jointly, except those filing federally as head of household or surviving spouse. Part-year residents get a credit based on their months of residency; 15 days or more counts as a month. You can claim the credit whether you use a Social Security number or an Individual Taxpayer Identification Number. The credit does not count as income for state program eligibility, including federally funded state programs where federal law permits. The Division of Taxation must report claimant counts and incomes, children benefiting, and average credits per child and claimant annually. The law took effect June 30, 2026, and applies to tax years beginning on or after January 1, 2026.