Lawmakers weigh 2026 increase to Minnesota child tax credit

Minnesota legislators are considering a bill to raise the state’s new child tax credit for low‑income families from $1,750 to $2,000 per child starting with the 2026 tax year, a change that would pump more cash directly into qualifying households across the Twin Cities. The refundable credit, first available on 2024 returns, currently applies to children 0–17 in families making under $31,950 (or $37,910 for married joint filers), with no cap on the number of children, and a smaller credit for "older" dependents 18–23. Under the proposal, the $2,000 amount would also be indexed to inflation beginning with taxable years after Dec. 31, 2026, preventing the benefit from quietly eroding over time. House Research figures show the combined cost of the child and working family credits was about $724.8 million for tax year 2023, with 77% of that tied to young‑child credits, underscoring how central this program has already become for poor families. For Minneapolis–St. Paul residents in low‑wage jobs, this isn’t abstract budget talk — it’s the difference between a one‑time check in the low thousands and something meaningfully larger to help cover rent, food, and child care, if lawmakers actually pass it.