States That Offer Earned Income Credit – If you’re a low- to moderate-income worker or family in the United States, the federal Earned Income Tax Credit (EITC) can put hundreds or even thousands of dollars back in your pocket. Many states sweeten the deal by offering their own state Earned Income Credit (also called state EITC). These credits are usually calculated as a percentage of your federal EITC and can significantly boost your refund or reduce what you owe.
As of 2026, more than 30 states plus the District of Columbia provide some form of state-level earned income credit. This comprehensive guide breaks down exactly which states offer it, how much you could receive, recent changes, and how to claim your credit. Whether you’re filing your 2025 taxes right now or planning ahead, understanding the states that offer earned income credit helps you maximize your benefits.
What Is the Earned Income Tax Credit (EITC)?
The Earned Income Tax Credit is a refundable federal tax credit designed to help working people with low to moderate incomes. You must have earned income from a job or self-employment and meet specific income limits based on your filing status and number of qualifying children.
For tax year 2025 (returns filed in 2026), the maximum federal EITC ranges from $649 (no children) up to $8,046 (three or more children). The credit phases out at higher income levels. Because it’s refundable, you can receive the full amount even if you owe no federal income tax.
How Do State Earned Income Credits Work?
Most state EITCs are a straightforward percentage of your federal EITC amount. For example, if your federal credit is $2,000 and your state offers a 50% match, you could get an extra $1,000 from the state.
Key differences across states:
- Refundable credits give you money back even if you owe no state taxes.
- Non-refundable credits only reduce your state tax bill to zero.
- A few states (like California and Minnesota) use their own formulas instead of a simple percentage.
- Eligibility usually mirrors federal rules, but some states extend benefits to younger workers, ITIN filers, or have different income thresholds.
Complete List of States That Offer Earned Income Credit (2025 Tax Year)
According to the latest IRS data (updated November 2025), the following states and local governments offer an Earned Income Tax Credit. Percentages shown are of the federal credit unless noted otherwise.
| State / Local Government | Percentage of Federal Credit | Refundable? | Special Notes |
|---|---|---|---|
| California | 46.5% | Yes | Uses own income formula |
| Colorado | 50% | Yes | — |
| Connecticut | 40% | Yes | — |
| Delaware | 20% | No (partial options) | — |
| District of Columbia | 70% | Yes | Increasing to 100% for 2026 |
| Hawaii | 40% | Yes | — |
| Illinois | 20% | Yes | — |
| Indiana | 10% | Yes | — |
| Iowa | 15% | Yes | — |
| Kansas | 17% | Yes | — |
| Louisiana | 5% | Yes | — |
| Maine | 25% (50% if no children) | Yes | — |
| Maryland | 50% | Yes | — |
| Massachusetts | 40% | Yes | — |
| Michigan | 30% | Yes | — |
| Minnesota | Up to $369 max (not % based) | Yes | — |
| Montana | 10% | Yes | Doubling to 20% for 2026 |
| Nebraska | 10% | Yes | — |
| New Jersey | 40% | Yes | — |
| New Mexico | 25% | Yes | — |
| New York | 30% | Yes | — |
| New York City (local) | 10–30% | Yes | Stacks with state credit |
| Ohio | 30% | No | — |
| Oklahoma | 5% | Yes | — |
| Oregon | 9% (12% if child under 3) | Yes | — |
| Rhode Island | 16% | Yes | — |
| South Carolina | 125% | No | Limited benefit for most |
| Vermont | 38% | Yes | Increasing for childless workers in 2026 |
| Virginia | 15% | Yes | Moving to 20% refundable in 2026 |
| Wisconsin | 4–34% (varies by children) | Yes | — |
Note: Pennsylvania launched its new 10% refundable Working Pennsylvanians Tax Credit (modeled directly on the federal EITC) for the 2025 tax year, making it available during the current 2026 filing season. Washington offers the Working Families Tax Credit, a separate refundable credit modeled after the federal EITC but not calculated as a percentage.
Recent Changes and Updates for 2026
State earned income credits continue to expand:
- District of Columbia → Moves to a full 100% match for all filers in 2026.
- Pennsylvania → New 10% refundable credit now available.
- Montana → Doubles to 20% for tax year 2026.
- Vermont → Boosts match for workers without children to 100%.
- Virginia → Shifts to fully refundable 20% credit.
These updates make 2026 one of the strongest years yet for state support of working families.
Local Earned Income Tax Credits
In addition to state programs, a few cities and counties offer their own credits that can stack with federal and state benefits:
- New York City
- San Francisco
- Montgomery County, Maryland
These local credits provide extra help for residents in high-cost areas.
How to Claim Your State Earned Income Credit?
- File your federal tax return and claim the federal EITC (Form 1040).
- File your state income tax return—most states automatically calculate the credit if you qualify.
- For Pennsylvania’s new credit or Washington’s Working Families Tax Credit, follow state-specific instructions or application portals.
- Use the IRS EITC Assistant and your state revenue department’s online tools to confirm eligibility.
Always double-check your state’s tax website or consult a tax professional, as rules can vary slightly by state.
Benefits of Claiming a State Earned Income Credit
State EITCs:
- Increase your refund or reduce taxes owed
- Encourage work and reduce poverty
- Provide extra support for families with children
- Boost local economies
Research shows these credits improve health outcomes, child development, and workforce participation for millions of American families.
Frequently Asked Questions About States That Offer Earned Income Credit
Do all states offer an earned income credit?
No. Roughly 31 states plus DC currently do; the rest do not.
Can I claim both federal and state EITC?
Yes—most states require you to qualify for the federal credit first.
Is the state credit refundable?
Most are, but a few (Ohio, South Carolina, etc.) are non-refundable.
What if I live in a state without EITC?
You still get the full federal credit. Consider moving to a state with a strong match if you’re able, or support local advocacy for new credits.
When will I get my state refund?
State refunds are usually issued after federal processing. EITC-related refunds often begin mid-February due to IRS rules.
Maximize Your Refund in 2026
Knowing which states that offer earned income credit can mean hundreds or thousands of extra dollars in your pocket. Check the IRS list above, visit your state department of revenue website, and file accurately to get every credit you deserve.
For the most up-to-date details, always refer to the official IRS page on state and local EITCs or your state tax agency. Tax laws can change, and professional advice tailored to your situation is always recommended.
Start claiming today—your state earned income credit is waiting!