The Child Tax Credit rose to $2,200 per child and the Earned Income Tax Credit rose to as much as $8,231 for 2026, after the "One Big Beautiful Bill" signed in July 2025 permanently raised the CTC and indexed it to inflation for the first time.
What Changed for the Child Tax Credit
The maximum Child Tax Credit increased from $2,000 to $2,200 per qualifying child, effective for tax years 2025 and 2026, under the reconciliation law signed in July 2025. Unlike the previous flat $2,000 figure, the new $2,200 base is indexed for inflation going forward, meaning it’s expected to rise gradually in future years rather than stay fixed until Congress acts again.
The refundable portion — the Additional Child Tax Credit, which is what lets lower-income families get money back even if they owe little or no tax — is capped at $1,700 per qualifying child for 2025 and 2026.
This is a base amount, not what every family receives. The credit still phases out at higher incomes and depends on how much tax liability a household has, so the $2,200 figure is a ceiling, not a guaranteed check.
What Changed for the Earned Income Tax Credit
For 2026, the EITC is worth up to $8,231 for filers with three or more qualifying children, up from $8,046 for 2025. Filers with two qualifying children can get up to $7,316, up from $7,152 the prior year. Like most tax parameters, the EITC amount is adjusted annually for inflation — this year’s increase reflects the standard annual adjustment rather than a new law specifically.
A Bill That Could Add More for Young Children
Separately, the Working Parents Tax Relief Act of 2026 (H.R. 8305) has been introduced in Congress and would amend the tax code to increase the EITC specifically for filers with qualifying children under age 4 — up to an additional $5,500 per child under 4, for up to three children. This bill has not passed as of this writing — it’s a proposal, not current law, and families should not assume it applies to their 2026 filing until it’s actually enacted.
What This Means for Your 2026 Return
These are the amounts that will apply when you file your 2026 tax return in early 2027. If you’re adjusting withholding or estimated payments during the year, using the updated $2,200 CTC base and the new EITC tables (rather than last year’s numbers) will give a more accurate picture of what you’ll owe or get back.
Frequently Asked Questions
Do I automatically get the full $2,200 Child Tax Credit per kid?
No — it phases out at higher income levels and is limited by your tax liability for the non-refundable portion. The refundable Additional Child Tax Credit is separately capped at $1,700 per child.
Is the extra EITC for children under 4 already available?
No. That’s a proposed bill (H.R. 8305) that has not been signed into law as of this writing. Don’t count on it until it actually passes.
Why did the EITC amount go up this year?
The EITC is adjusted annually for inflation as a matter of routine — this year’s bump to $8,231 (three-plus children) and $7,316 (two children) reflects that standard adjustment.
Source: IRS Reveals 2026 Child Tax Credit, EITC and Other Family Credit Amounts — Kiplinger