States with Earned Income Tax Credit EITC – The Earned Income Tax Credit (EITC) is one of the most powerful tax benefits available to working Americans. While the federal EITC helps millions of low- to moderate-income individuals and families each year, many states offer their own state EITC to provide additional refundable tax relief. If you live in one of the states with an Earned Income Tax Credit, you could receive hundreds or even thousands of extra dollars when you file your taxes.
This 2026 guide covers everything USA taxpayers need to know about states with EITC, including the full list, recent changes, how to claim it, and why these credits matter for working families.
What Is the Earned Income Tax Credit (EITC)?
The EITC is a refundable tax credit designed to boost the earnings of low- and moderate-income workers. It reduces your tax bill dollar-for-dollar and can result in a refund even if you owe no tax. To qualify, you must have earned income (wages, self-employment income, etc.), meet adjusted gross income (AGI) limits, and have a valid Social Security number (with limited exceptions in some states).
For tax year 2025 (returns filed in 2026), the federal EITC offers maximum credits up to $8,046 or more depending on the number of qualifying children, with specific AGI phase-out ranges. State EITCs build on this by adding extra money on top of your federal credit.
Federal EITC vs. State EITCs: Key Differences
The federal EITC is available in every state. State EITCs, however, vary widely:
- Most are a percentage of your federal EITC amount.
- Most are fully refundable (you get cash even if you owe no state tax).
- A few states use their own formulas or have non-refundable credits.
- Some states recently expanded or created new EITCs to better support working families.
As of 2026, 31 states plus the District of Columbia, Guam, and Puerto Rico have enacted a state-level EITC.
Full List of States with Earned Income Tax Credit (2025–2026 Tax Year)
Here is the most current list based on IRS data and recent state updates. Percentages reflect the match rate to your federal EITC unless otherwise noted. All credits listed are available for tax year 2025 returns filed in 2026.
| State / Local Government | Percentage of Federal EITC | Refundable? | Key Notes / Recent Changes |
|---|---|---|---|
| California | 46.5% | Yes | Own income rules |
| Colorado | 50% | Yes | — |
| Connecticut | 40% | Yes | +$250 additional for families with dependents (2025) |
| Delaware | 20% | No | — |
| District of Columbia | 100% | Yes | Increased to full match for tax year 2025 |
| Hawaii | 40% | Yes | — |
| Illinois | 20% | Yes | — |
| Indiana | 10% | Yes | — |
| Iowa | 15% | Yes | — |
| Kansas | 17% | Yes | — |
| Louisiana | 5% | Yes | — |
| Maine | 25% (50% if no qualifying children) | Yes | — |
| Maryland | 50% | Yes | — |
| Massachusetts | 40% | Yes | — |
| Michigan | 30% | Yes | — |
| Minnesota | 4% of earned income (max ~$369) | Yes | — |
| Montana | 20% | Yes | Doubled from 10% in 2025 |
| Nebraska | 10% | Yes | — |
| New Jersey | 40% | Yes | — |
| New Mexico | 25% | Yes | — |
| New York | 30% | Yes | — |
| New York City | 10–30% | Yes | Local credit |
| Ohio | 30% | No | — |
| Oklahoma | 5% | Yes | — |
| Oregon | 9% (12% if child under 3) | Yes | — |
| Pennsylvania | 10% | Yes | New credit effective 2025 (Working Pennsylvanians Tax Credit) |
| Rhode Island | 16% | Yes | — |
| South Carolina | 125% | No | — |
| Vermont | 38% (100% for workers without children) | Yes | Major expansion for childless workers (2025) |
| Virginia | 15–20% | Yes | Now fully refundable 20% option |
| Wisconsin | Varies (4%–34% by # of children) | Yes | — |
Note: A handful of additional states (such as Alabama, Arkansas, Arizona, Missouri, Texas, Utah, and Washington) have enacted EITCs in recent years, but their structures or implementation may differ from the percentage-based model above. Always check your state revenue department for the latest rules.
Local EITCs also exist in places like San Francisco and Montgomery County, Maryland.
Recent Changes and Expansions to State EITCs
Lawmakers across the country continue to strengthen these credits:
- District of Columbia jumped to a full 100% match — the most generous in the nation.
- Pennsylvania launched its first-ever state EITC (10% match), helping nearly 1 million working families.
- Montana doubled its credit to 20%.
- Vermont boosted the credit for workers without children to 100%.
- Connecticut added a flat $250 boost for families with qualifying children.
These changes make 2026 an especially good year to claim your state EITC if eligible.
How to Claim Your State Earned Income Tax Credit?
- File your federal tax return and claim the federal EITC (Form 1040 + Schedule EIC).
- File your state income tax return — most states automatically calculate the state EITC if you qualify for the federal one.
- Check your state’s revenue website or use free tax-prep software (VITA/TCE sites often help).
- No extra form is usually required, but some states have slight variations.
Tip: Even if you don’t owe state taxes, the credit is often refundable, so you can still get money back.
Benefits of Living in a State with EITC
State EITCs:
- Put extra money directly into the pockets of working families.
- Reduce child poverty and food insecurity.
- Encourage work and career advancement.
- Stimulate local economies through increased spending.
Research consistently shows that these credits are one of the most effective tools for fighting poverty while supporting employment.
Which States Do NOT Have an EITC?
The remaining states without a state EITC rely solely on the federal credit. Taxpayers in those states still benefit from the federal EITC but miss out on the additional state match. Check the list above or your state’s tax agency to confirm current status, as new credits are occasionally added.
Maximize Your Refund: Check Your Eligibility Today
If you live in any of the states with Earned Income Tax Credit listed above, don’t leave money on the table. Use the IRS EITC Assistant and your state tax website to see exactly how much you may receive.
Filing season for 2025 taxes is underway — claim your federal and state EITC to get the biggest possible refund. For the most accurate information, visit IRS.gov or your state department of revenue.
Sources: IRS (updated November 2025), Center on Budget and Policy Priorities, Institute on Taxation and Economic Policy, and state revenue departments. Tax laws can change; consult a tax professional or official state resources for your specific situation.