State Earned Income Tax Credits

In addition to the federal EITC, state-level EITCs can make more money available to lower-income workers while demonstrating a state’s commitment to reducing poverty among working families. Most states with state EITCs set their benefit as a percentage of the federal credit, making them easy to administer. Nearly all state EITCs are “refundable,” making them available to workers even if they do not owe state income taxes.

For more information on state EITCs or starting an EITC in your state, see the following Center on Budget and Policy Priorities reports:

1 Minnesota’s EITC varies with earnings; average is 34 percent. Their minimum age requirement for taxpayers without children is 21 (rather than the federal minimum of 25).
2 Wisconsin’s EITC is based on number of children.
3 The District of Columbia and New York also allow certain non-custodial parents who are making child support payments to claim a state EITC that is greater than the credit taxpayers without qualifying children might otherwise claim.
4 Maryland also offers a non-refundable EITC set at 50 percent of the credit. Taxpayers may claim either the refundable credit or the non-refundable credit, but not both.
5 California’s EITC is 85% of the federal EITC up to half of the federal phase-in range. Eligibility is based on income.
6 Oregon’s EITC for workers with children 3 years and younger is 12 percent of the federal EITC.
7 Indiana’s EITC does not account for expansions to the federal EITC for married workers and for families with three or more children.
8 Maine’s EITC is 25% for workers without children. People qualify starting from 18 years old.
9 Washington enacted a state EITC in 2008 but has yet to fund it.
*In California and Colorado people with ITINs qualify for the state EITC. California’s is limited to people with children age five or younger.
Three local governments — New York City, San Francisco, and Montgomery County, Maryland — offer local EITCs. Note: The San Francisco credit is currently only available to first-time recipients.


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