Raising young kids in Georgia might soon get a little easier on the wallet. A new state law will give families a child tax credit starting in the 2026 tax year. It may not seem like a huge amount at first glance, but for many parents, every bit helps—especially when you’re dealing with daycare costs, diapers, and everything in between.
What Is the New Georgia Child Tax Credit?
Georgia has passed a new law that gives parents a $250 tax credit for each child under the age of six by the end of the tax year. This means if you have a five-year-old or younger when you file your 2026 taxes in 2027, you can deduct $250 per eligible child from your state taxes.
It’s important to note that only one parent can claim the credit if both file separately. So, if you’re divorced or separated, make sure only one of you lists the child as a dependent for the tax credit.
When Will the Credit Start?
The credit does not take effect right away. It starts with the 2026 tax year, meaning you’ll see the benefit when you file in early 2027. This gives families a chance to plan ahead and understand how it will affect their yearly taxes.
Extra Help for Childcare Costs
This child tax credit is just one part of the plan. Georgia is also increasing the percentage of childcare expenses that families can deduct. Right now, families can deduct up to 30% of the amount allowed by the federal government for childcare and dependent care expenses.
With the new law, that percentage goes up to 50%. So if you’re paying for daycare or after-school programs, you could get a larger tax break than before. It won’t cover all your costs, but it can make a noticeable difference.
Support for Working Parents Through Employers
Here’s something many people might not know—businesses are included in this plan too. Georgia will give tax refunds to companies that help their employees cover childcare costs. If a business contributes at least $1,000 per employee per year to help with childcare, the state will refund that amount in the first year.
This move not only helps parents but also encourages more companies to support working families. When employees have less stress about childcare, they’re usually more focused and productive at work.
How the Tax Credit Works for Larger Families
For families with more than one young child, the tax credit continues—but with a twist. Starting from the second child, the credit increases to $500 per additional child. So, a family with two children under six could get $750 total in credits, and more if they have additional kids.
This approach is meant to help those juggling the demands of parenting and working, while also recognizing how quickly expenses grow with more children in the home.
Long-Term Impact for Georgia Families
While this isn’t a massive change to Georgia’s entire tax system, it’s a positive step. The state is showing that it understands how costly it is to raise children, especially in today’s economy. With the rising price of groceries, rent, heating, and childcare, any kind of financial help can go a long way.
This policy also highlights a growing effort to connect state programs to real-life family needs. By offering both tax relief and encouraging businesses to step up, Georgia is giving families more tools to handle everyday challenges.
Other Help Available for Families in Georgia
If your household is struggling financially, Georgia has other programs that might help too. The Temporary Assistance for Needy Families (TANF) program gives monthly cash help to low-income families with children under 18 (or 18-year-olds still in school full time). TANF also offers job support to help parents become financially independent.
If you think you might qualify, you can apply through the Georgia Department of Human Services. Support is out there—you just have to reach for it.
Starting in 2026, families in Georgia with young children will be able to claim a new child tax credit worth $250 per child under age six. On top of that, higher childcare expense deductions and support for businesses that help with childcare costs could provide more relief. While the changes will take a couple of years to roll out, this is a step in the right direction for making parenting more affordable in Georgia.
