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:
- How Much Would a State Earned Income Tax Credit Cost in Fiscal Year 2015?
- States Can Adopt or Expand Earned Income Tax Credits to Build a Stronger Future Economy
- A Hand Up: How State Earned Income Tax Credits Help Working Families Escape Poverty in 2011
*California’s EITC is 85 percent of the federal EITC up to half of the federal phase-in range. Eligibility is based on income.
The District of Columbia’s EITC is 100% for workers without children and 40 percent for workers with children. DC also allows 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.
Indiana’s EITC does not account for expansions to the federal EITC for married workers and for families with three or more children.
Maine’s EITC is 25 percent for workers without children and 20 percent for families with children. People qualify starting from 18 years old.
Maryland’s EITC is 45 percent for families with children and 100 percent for those without children (capped at $530).
Minnesota’s EITC varies with earnings; average is 34 percent.
People qualify for New Jersey’s EITC starting from 18 years old.
People qualify for New Mexico’s EITC starting from 18 years old.
New York allows 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.
Oregon’s EITC for workers with children 3 years and younger is 12 percent of the federal EITC.
Starting in 2023, more than 400,000 households with low and moderate incomes across the state will get an annual financial boost of up to $300 for a single person and $1,200 for a family of four or more through the credit.
Wisconsin’s EITC is based on number of children.
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.