State Earned Income Tax Credits (EITC)
The Earned Income Tax Credit (EITC) is a tax benefit for individuals and families who earn low-to moderate incomes — mainly targeted at families with children.
It is a tax credit that may reduce the amount of taxes you owe, or provide you with a refund when the credit is larger than the tax amount owed.
The EITC is worth up to $8,046 in refundable cash, with the largest credits going to households with the lowest incomes. The credit phases out as income rises. 1
Federal EITC
How much is the EITC for 2025?
For the 2025 tax year, the earned income credit ranges from $649 to $8,046, depending on your filing status, adjusted gross income (AGI), and how many children you have.
Single parents with two children under age 19 who made less than $57,310 are eligible for a refundable credit of up to $7,152. In contrast, couples with no dependent children earning less than $26,214 can receive no more than $649.
| No. of Child | Maximum Credit |
|---|---|
| None | $649 |
| 1 | $4,328 |
| 2 | $7,152 |
| 3 or more | $8,046 |
What is the maximum income to qualify for EITC?
Depending on your filing status and number of qualifying children, you might be eligible for the credit on your 2025 federal tax return if your income is under $68,675.
| No. of Child | Single | Married |
|---|---|---|
| None | $19,104 | $26,214 |
| 1 | $50,434 | $57,554 |
| 2 | $57,310 | $64,430 |
| 3 or more | $61,555 | $68,675 |
FAQ
Which states have local earned income tax?
Thirty one (31) states and the District of Columbia offer their own version of Earned Income Tax Credits (EITCs) to complement the federal credits by applying a percentage match to the federal allocation.
Like the federal credit, state EITCs are refundable in all but three states, where they are non-refundable: Ohio, South Carolina, and Utah. 2
A nonrefundable EITC can only reduce a taxpayer’s liability to zero, but any remaining credit amount is not refunded and cannot be carried forward.
How much is each state EITC compared to the federal EITC?
Nearly all state EITCs are modeled directly on the federal EITC — each uses federal EITC eligibility rules, however, the percentages vary greatly from state to state. 3
All but one state set their credits as a percentage of the federal EITC, the exception being Minnesota which calculates its credit as a percentage of income.
| STATE | PERCENTAGE | REFUNDABLE |
|---|---|---|
| California | 45% | |
| Colorado | 50% | |
| Connecticut | 40% | |
| Delaware | 4.5% | |
| 20% | ||
| District of Columbia | 85% | |
| — childless workers | 100% | |
| Hawaii | 40% | |
| Illinois | 20% | |
| Indiana | 10% | |
| Iowa | 15% | |
| Kansas | 17% | |
| Louisiana | 5% | |
| Maine | 25% | |
| — childless workers | 50% | |
| Maryland | 45% | |
| 50% | ||
| Massachusetts | 40% | |
| Michigan | 30% | |
| Minnesota | ||
| Missouri | 20% | |
| Montana | 10% | |
| Nebraska | 10% | |
| New Jersey | 40% | |
| New Mexico | 25% | |
| New York | 30% | |
| Ohio | 30% | |
| Oklahoma | 5% | |
| Oregon | 9% | |
| — with child under 3 | 12% | |
| Pennsylvania | 10% | |
| Rhode Island | 16% | |
| South Carolina | 125% | |
| Utah | 20% | |
| Vermont | 38% | |
| Virginia | 15% | |
| Wisconsin | 4% — 34% | |
| New York City | 10% — 30% |
New York City is one of only three cities to offer its own EITC as an additional level of support. Other cities that offer local EITC are San Francisco, California, 4 and Montgomery County, Maryland.
In 2021, Washington became the first state without a personal income tax to enact a state EITC. The Washington State Working Families Tax Credit (WFTC) offers a flat credit to individuals and families, up to $1,330 back if they meet certain eligibility requirements.
What is the minimum age for EITC?
The federal EITC generally only applies to childless workers aged 25 to 64. Several states, however, have lowered or removed the age requirement for their state-level credits.
The states that have expanded their EITC eligibility to include young workers (ages 18 to 24) without children in the home include:
- California
- Colorado
- Illinois
- Maine
- Maryland
- Minnesota
- New Jersey
- New Mexico
Why is the EITC considered one of the most effective anti-poverty programs?
The EITC is widely recognized as an effective tool for preventing low-income working families from slipping into poverty. The credit is very successful at reducing poverty, benefiting recipient parents and children, and promoting work rather than welfare.
The “refundable” portion of the EITCs provides a much needed income boost that helps meet their basic needs and pay for the very things that allow them to keep working, such as child care and transportation.
Census data for 2024 indicate that the EITC alone lifted 4.4 million people, including about 2.3 million children. In fact, the EITC is widely considered as one of the largest and most effective anti-poverty program in the nation, especially for working families and children. 5
While the EITC provides meaningful financial support, it is primarily intended as a temporary resource that helps families meet their day-to-day needs while they work toward self-sufficiency.