Child Tax Credit 2026: $2,200 Per Child, Now Permanent

The Child Tax Credit is one of the most widely claimed tax benefits in the US — tens of millions of American families use it to reduce their tax bill each year. TCJA doubled the credit from $1,000 to $2,000 per child in 2018 and significantly raised the income phase-out thresholds. That increase was originally scheduled to expire after December 31, 2026, which would have cut the credit back to $1,000 per child with a much lower phase-out threshold. That did not happen. The One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, made the CTC increase permanent and raised it further to $2,200 per child. This guide explains the current, permanent CTC rules, the related credits OBBBA also locked in, and who benefits most.

How Much Is the Child Tax Credit Worth for Your Family in 2026?

The value of the permanent $2,200 CTC depends on income level, family size, and filing status. All figures below reflect current, permanent law under OBBBA — none of these are at risk of a scheduled reduction.

Lower-Income Families (Under $30,000 Earned Income)

For families earning $30,000 or less with 2+ children, the refundable ACTC (up to $1,700 per child) provides a meaningful refund even with little or no tax owed. Example: 2 children, $25,000 earned income — refundability is based on 15% of earned income above $2,500 (15% × $22,500 = $3,375), capped at $1,700 per child ($3,400 total), so this family receives the full $3,400 refundable amount. The 2021 American Rescue Plan's fully-refundable, higher-value CTC ($3,000–$3,600/child) was more generous still, but that was a one-year pandemic-era expansion that ended in 2021 — it is unrelated to the current permanent OBBBA structure.

Middle-Income Families ($75,000–$200,000 MAGI)

These families receive the full $2,200-per-child credit, since they fall well below the $200,000 (single) / $400,000 (MFJ) phase-out threshold. A married couple with $150,000 income and 3 children claims the full $6,600 CTC ($2,200 × 3) every year — this is not scheduled to change. Families in this range benefit most from the credit in dollar terms relative to their tax liability.

Upper-Middle-Income Families ($200,000–$400,000 MAGI)

Married filers in this range still receive the full credit, since the $400,000 MFJ phase-out threshold was kept permanently under OBBBA (rather than dropping to the much lower pre-TCJA level). A dual-income professional couple with $350,000 MAGI and 2 children claims the full $4,400 CTC ($2,200 × 2). Phase-out only begins above $400,000 MFJ, reducing by $50 per $1,000 of income above that threshold — full phase-out occurs around $444,000 MFJ for a two-child family.