What it means for you
Starting with 2022 tax returns, New York City's earned income credit pays 10% to 30% of your federal credit, up from a flat 5%. In the first tax season, 746,000 filers claimed $345 million.
Who benefits: Low- and moderate-income working New Yorkers who live in the city and qualify for the federal EITC; more than 746,000 filers, covering about 1.7 million New Yorkers, claimed it in tax season 2023.
If you live in New York City and qualify for the federal earned income tax credit, the city adds its own credit on top. For nearly 20 years, that city credit was just 5% of your federal one. Starting with 2022 tax returns, it pays 10% to 30%, and the lowest earners get the most. You claim it on your state tax return (Form IT-215), so there’s no separate application.
The difference is real money. The city says a single parent with one child earning $14,750 saw the city credit grow from $187 to $933. In the first tax season under the new rates, more than 746,000 filers claimed $345 million, up from $64.8 million the year before. The average credit rose from $107 to $462.
Mayor Eric Adams campaigned on the increase, pushed for it in Albany, and committed $250 million a year in city money to cover the cost. In the Legislature, Assembly Ways and Means Chair Helene Weinstein and Sen. Diane Savino fought for a larger credit in the state budget. Gov. Kathy Hochul signed the budget on April 9, 2022. The credit is still in effect, and the state’s tax-year 2026 EITC parameters continue to list the enhanced city credit.
Lower costsWork and wages
Sources
- Summary of 2022 corporation tax and personal income tax changesNew York State Department of Taxation and Finance
- S8009, 2021-2022 Legislative Session (enacted as Chapter 59 of 2022)New York State Senate
- Instructions for Form IT-215 (2025), Claim for Earned Income CreditNew York State Department of Taxation and Finance, December 12, 2025
- Earned Income Tax Credit (EITC) parametersNew York State Department of Taxation and Finance
- Mayor Adams applauds Earned Income Tax Credit enhancement in state budget, fulfilling pledge to working New YorkersNew York City Office of the Mayor, April 16, 2022
- New Yorkers claim $345 million thanks to Mayor Adams' push for enhanced Earned Income Tax CreditNew York City Office of the Mayor, August 19, 2024
How we checked this
Drafted by Claude Opus 5.5 (Anthropic) on November 11, 2026. Checked against its sources by GPT-5.6-sol (OpenAI) on November 11, 2026, which corrected it. Confirmed the credit’s rates, first-year results, enactment date, financing, and continued availability in 2026. Corrected the government level, political credit, financing explanation, current-status wording, and action-based source key.
Spot a mistake? Send a correction and we'll fix it.
