From the increasing costs of groceries to inflated housing prices, where you live can shape your family’s financial reality. Taxes are no exception. While child-related tax credits provide relief to parents nationwide, the amount of financial support families receive, and how likely they are to claim it, varies by state. To better understand these differences, we analyzed the latest IRS data on child-related tax credits, like Child Tax Credits (CTC), Additional Child Tax Credits (ACTC), and Child and Dependent Care Tax Credits (CDCTC). Our study breaks down which states provide the most tax relief per household and where the highest percentage of families claim these types of credits. The results reveal clear regional trends, showing how location can influence the tax benefits available to parents across the country. It's important to note that tax laws change regularly, and our study reflects the most recent IRS data available at the time of analysis. As policies evolve, these figures may also change. For instance, the CTC and CDCTC have expanded in the past few years. Staying informed about these changes is crucial for families planning their finances. Which States Give the Most Tax Relief To Parents? Raising kids comes with plenty of costs, but tax credits can help lighten the financial load for families across the country. While every eligible household can benefit from child-related tax credits, the amount of relief can vary depending on where they live. On a national level, the average amount of child-related tax credits given per return was $2,527. But which states provide the most significant financial relief to parents? We analyzed IRS data to find out where parents receive the highest average tax credits. While the variance isn’t always huge, we did notice some interesting trends. States With the Most Parental Tax Relief These states averaged the highest tax benefit per return given to households claiming child-related credits: Utah – $2,744 Idaho – $2,679 South Dakota – $2,650 Texas – $2,645 Alaska – $2,634 Many of the states that average the highest tax credits for parents are located in the West and Midwest, a regional trend that we’ll see throughout our analysis of the data. On a more local level, this is likely due to the higher-than-average birth rates and family sizes in some of the states that make up our top five. For example, Alaska, Idaho, Texas, and Utah are all in the top 10 states when it comes to the average family size in the U.S. All five also finish in the top 20 when looking at birth rates, meaning that families in these areas, where having several children is more likely, benefit more from credits like the CTC and ATC. Places With the Least Parental Tax Relief On the other end of the spectrum, these areas provide the lowest average tax benefit per return for parents: District of Columbia – $2,327 West Virginia – $2,345 Massachusetts – $2,350 Rhode Island – $2,367 Vermont – $2,376 Nearly every state that sees lower child-related tax credits is located in the Northeast. The region generally has lower birth rates and family sizes, plus higher costs of living, which likely limit the number of people benefiting from these tax incentives. Massachusetts, for instance, has a higher concentration of young professionals who live in more urban areas, which could lead to fewer households claiming these credits. Meanwhile, West Virginia has one of the oldest populations in the U.S., meaning fewer households with dependents eligible for such tax relief. While these figures highlight where parents receive the most financial relief per return, the percentage of households actually claiming child-related credits varies widely across the country. Next, we’ll explore the states where the highest and lowest percentages of tax returns include child-related tax benefits. Where Do People Claim Child-Related Tax Credits the Most? While child-related tax credits provide financial relief to eligible families, not every household claims them. The percentage of tax returns that include these credits varies widely across the country, often reflecting regional trends in family structures and income levels. Nationally, 11.1% of tax returns claim at least one child-related credit. However, some states far exceed this average, while others fall well below. Here’s a look at where the highest and lowest percentages of households benefit from these tax incentives. States With the Highest Percentage of Returns Claiming Child-Related Tax Credits These states had the largest share of tax returns claiming at least one child-related credit: Mississippi – 19.2% Louisiana – 17.4% Arkansas – 16% Alabama – 15.4% Texas – 15.3% The South leads the country in the percentage of returns claiming child-related tax credits. These states tend to have higher birth rates and larger families, which increases the number of households eligible for credits like the CTC and ACTC. Texas stands out as the largest state on the list and the only one also ranking in the top five for the average value of those tax credits. States With the Lowest Percentage of Returns Claiming Child-Related Tax Credits Conversely, these states had the smallest share of tax returns claiming child-related credits: New Hampshire – 5.3% Massachusetts – 6.3% Vermont – 6.5% Maine – 7.4% Colorado – 7.6% Unlike the South, New England dominates this list, with four of the five states located in the Northeast. This trend aligns with the region’s typical family configuration and aging population, contributing to fewer households qualifying for child-related tax relief. Colorado, the only non-Northeastern state in the bottom five, has a relatively high median age and a large share of young professionals, which may contribute to its lower percentage of claims. While tax credits provide meaningful financial support for parents, eligibility and claim rates depend on a variety of demographic and economic factors. Closing Thoughts Where a family lives can shape everything from the cost of housing to the quality of schools—and as this analysis shows, even tax benefits. While tax credits offer relief to parents nationwide, the amount and likelihood of receiving them vary by state, influenced by factors like birth rates, family sizes, and regional economics. For families, every financial advantage counts. Whether it’s tax savings or choosing the right car seat or stroller, parents are always looking for ways to make life a little easier. At Chicco, we understand that raising children comes with plenty of decisions, and we’re here to help with products designed to support parents every step of the way. Methodology To determine the states that offer the most tax relief for parents, we analyzed the most recently available local tax return data from the Internal Revenue Service (IRS). We found the amount of child-related tax credits per return and the percentage of returns claiming child-related credits in every state and Washington, DC. National Averages: Child-Related Tax credits (Amount) per Return: $2,527 % of Returns Claiming Child-Related Credits: 11.1% We defined 'child-related tax credits' as Child Tax Credits (CTC), Additional Child Tax Credits (ACTC), and Child and Dependent Care Tax Credits (CDCTC).