Every NY Tax Credit You Might Be Missing in 2026

NY Tax Credits: Free Money You Might Be Missing

Tax credits are more valuable than deductions—they reduce your tax bill dollar-for-dollar. New York offers numerous credits that many taxpayers overlook.

How Credits Differ from Deductions

Credits are always more valuable. Here are all the NY credits you should know about.

1. NY Earned Income Credit (EIC)

Worth: 30% of your federal Earned Income Credit

If you qualify for the federal EIC, you automatically qualify for NY's version. This can be worth several hundred to over $2,400. The 2026 federal maximum is $8,231 (three or more qualifying children), worth up to $2,469 at the state level.

Eligibility: Low-to-moderate income, with or without children

2. Empire State Child Credit

Worth: Up to $1,000 per child under age 4; up to $330 per child ages 4-16 (tax year 2025, filed in 2026)

The Empire State Child Credit was dramatically expanded in the FY 2026 state budget. For tax year 2026 returns (filed in 2027), the credit for children ages 4 through 16 rises to up to $500 per child. The credit is now fully refundable — even families with little or no income receive the full value — and the phaseout was pushed back so more middle-class families qualify:

To qualify:

3. Child and Dependent Care Credit

Worth: Up to $3,000 per family with two or more children ($1,500 with one child)

If you pay for child care so you (and spouse) can work, you may qualify. The federal credit is now 50% of qualifying expenses (up to $3,000 for one child or $6,000 for two or more) and is fully refundable under the One Big Beautiful Bill Act. New York's credit matches up to 100% of the federal credit for families earning under $150,000, phasing down above that.

The credit is a percentage of your expenses based on income.

4. Real Property Tax Credit

Worth: Up to $500

For low-income homeowners and renters who paid property taxes (directly or through rent).

Eligibility:

5. College Tuition Credit or Deduction

Worth: Up to $400 per student per year

Available for qualified undergraduate tuition expenses.

Choose one:

For most taxpayers, the credit provides more value.

6. Solar Energy System Credit

Worth: 25% of qualified expenses, up to $5,000

If you install solar panels on your NY home, you can claim a significant credit.

Example: $20,000 solar installation = $5,000 NY credit

This is in addition to the federal 30% solar credit!

7. Agricultural Property Tax Credit

Worth: Varies based on school taxes paid

For farmers paying school property taxes on qualified agricultural land.

8. Long-Term Care Insurance Credit

Worth: 20% of premiums, up to $1,500

If you pay for qualified long-term care insurance, claim this credit.

9. Clean Heating Fuel Credit

Worth: Up to $500 per year

For purchases of clean heating fuel (biodiesel, etc.) for your NY home.

10. Noncustodial Parent Earned Income Credit

Worth: Varies — the credit is updated annually (see the current IT-209 instructions for this year's amounts)

For noncustodial parents paying child support who don't qualify for the regular EIC.

Eligibility:

NYC-Specific Credits

NYC residents have additional credits:

School Tax Credit

Enhanced Real Property Tax Credit

How to Claim These Credits

Most credits are claimed on Form IT-201 or specific schedules:

Common Mistakes That Cost You Money

Refundable vs. Non-Refundable

NY refundable credits include: EIC, Empire State Child Credit, Noncustodial Parent EIC

Calculate Your Credits

Use our NY tax calculator to see your estimated 2026 tax liability, then review which credits might reduce your bill further. Many taxpayers leave money on the table by not claiming available credits.