- Governor Sherrill launched a portal increasing the benefit to $1,250 per child for the 2026 tax year.
- The mobile-friendly tool targets lower-income non-filers earning $80,000 or less with a 15-minute application.
- The $52 million expansion assists over 232,000 families facing rising childcare costs through 2028.
Gov. Mikie Sherrill launched a free online filing portal July 10 as New Jersey increases its refundable Child Tax Credit to $1,250 per child for tax year 2026.
The service, available in English and Spanish, is designed to let lower-income families apply in approximately 15 minutes. More than 200,000 families already claim the state benefit each year.
The higher maximum does not apply to tax year 2025. The cap remains $1,000 per child for that year, while the expanded amount begins with tax year 2026.
Free toolSubstantial Presence Test CalculatorThe state says the new portal should reach households that qualify but have not filed. It is available at SimpleFile.NJ.gov.
Sherrill announced the website as her administration promoted a broader affordability package. “Helping more New Jersey families benefit from our state’s Child Tax Credit is one of the most direct ways we can make life more affordable, because every dollar matters for parents who need childcare, groceries, clothes, and other essentials,” she said.
The filing tool targets households outside the usual tax-filing system
New Jersey developed the mobile-friendly website with Code for America. It is aimed at lower-income households that may not normally file state tax returns.
The basic eligibility rules cover several requirements:
| Requirement | Qualification described by the Division of Taxation |
|---|---|
| Residency | New Jersey resident for all or part of tax year 2025 |
| Taxable income | $80,000 or less |
| Federal status | The child can be claimed as a dependent for federal tax purposes |
| Child’s age | Age 5 or younger by the end of the tax year |
| Application languages | English or Spanish |
| Application time | Approximately 15 minutes |
The state’s current eligibility information applies to residents who lived in New Jersey for all or part of tax year 2025. Families must meet the income, dependency and age requirements to claim the benefit for that year.
The online process is intended to reduce the filing barrier. More than 200,000 families already receive the benefit annually, but officials say additional eligible households have not filed.
The temporary increase adds $52 million to the state program
The new maximum represents a 25% increase from the earlier $1,000 limit. Families earning $30,000 or less receive the full $1,250 amount.
The payment is refundable. That means it can exceed a parent’s total state tax liability.
The temporary enhancement is scheduled to remain in effect through the 2028 tax year. It adds $52 million annually, bringing the estimated total cost of the program to $207 million in FY 2027.
Sherrill signed the $60.7 billion Fiscal Year 2027 budget on June 30, 2026. The new fiscal year began July 1, 2026, and the budget enacted the larger benefit for the 2026 tax year.
The expansion is expected to provide direct relief to over 232,000 families. Childcare accounts for up to 19% of the average New Jersey household budget, according to the budget-related research.
Rising prices add pressure to parents’ household budgets
The Bureau of Labor Statistics recorded an annual inflation rate of 3.5% in June 2026. Childcare costs remain another burden.
A 2025 study found that New Jersey families spend more than double the national average on childcare. Federal guidelines identify 7% of a household budget as affordable, while New Jersey families typically spend 19%.
Economists have linked some of the continued price pressure to geopolitical instability. They cited an escalation of the conflict with Iran and its effects on global energy markets and supply chains.
Sherrill described the budget as a response to rising household expenses.
“When I took office, I promised New Jersey families that affordability would be the north star of every decision we made. With the passage of our first budget, we are delivering on that promise. It is an affordability budget that takes on the rising costs of housing, health care, and property taxes.”
Supporters cite flexibility as Republicans challenge the broader budget
Senator Paul Sarlo, D-Bergen, chair of the Senate Budget and Appropriations Committee, said the increase would return money to working families and ease economic pressure across the state.
Senate Majority Leader M. Teresa Ruiz, D-Essex/Hudson, said parents could decide whether to spend the money on diapers and formula, school uniforms, college savings or groceries.
Lieutenant Governor Dr. Dale G. Caldwell said the assistance was support families had “already earned” and could remove barriers to financial stability.
Republican lawmakers opposed the budget. Senator Carmen Amato, Jr., R-Ocean, and Assemblymen Brian Rumpf and Gregory Myhre voted against it.
Amato described the spending plan as “pork-barrel, politicized spending.” He also criticized changes to the Stay NJ property tax relief program, which reduced benefits for some high-income seniors to fund other priorities.
The budget’s rollout coincides with another state payment schedule. On July 15, 2026, the first wave of Senior Freeze property tax relief checks was issued.
The temporary enhancement now runs through tax year 2028. The portal launch on July 10 came less than two weeks after the budget became law.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
