The amount of Child Tax Credit in New Jersey will be increased by 25% from the current level. The
$60.7 billion state budget bill for fiscal year 2026–2027, scheduled to be processed by the New Jersey Legislature on the 30th, has finalized the inclusion of a provision to increase the state income tax credit under the Child Tax Credit program by 25% over the next three years. This marks the first expansion of the Child Tax Credit in New Jersey in three years, since 2023.
Under this budget bill, the tax credits per child based on annual household income are as follows
: $1,250 per child for households with an annual income of less than $30,000
; $1,000 per child for households with an annual income of $30,000–
$40,000; $750 per child for households with an
annual income of $40,000–$50,000; $500 per child for households with an annual income of $50,000–$60,000
; and $250 per child for households with an annual income of $60,000–$80,000. This increase was finalized as New Jersey Governor Mikey Sherrill and the Democratic leadership of the state Senate and Assembly recently reached a tentative agreement on a new budget of $60.7 billion. In addition to expanding the Child Tax Credit, the new budget bill includes a provision to lower the eligibility threshold for the “Stay New Jersey” property tax relief program for those aged 65 and older from the current annual income of $500,000 or less to $200,000 or less. Furthermore, it includes a plan to impose a fee of $325 to $725 per employee on companies with 50 or more employees enrolled in Medicaid, a measure that faced significant opposition from the business community. The
Democratic Party in the state legislature officially introduced the new budget bill on the afternoon of the 28th, and after it was approved by both the State Senate and Assembly Budget Committees late that afternoon, it is now set for a vote in the plenary session on the 30th. Governor Sherrill plans to sign the bill immediately once it is finally approved by the legislature.
However, the Republican Party in the state legislature strongly criticized the process, stating that “hasty handling is taking place, such as submitting the massive state budget bill directly to a subcommittee and passing it without sufficient time to properly review it.”