State Earned Income Tax Credits: Extra Money in 32 States

Working families and individuals often miss tax money they are entitled to collect. The federal government offers the Earned Income Tax Credit (EITC) to lower what you owe or boost your refund, but many people do not realize their state might offer a second, separate version of that same credit.

As of 2026, 32 states, the District of Columbia, and Puerto Rico offer a state-level EITC. Claiming both means more money back in your pocket.

How State EITCs Work

State Earned Income Tax Credits build directly on top of the federal credit. In most participating areas, your state EITC is calculated as a percentage of your federal payout.

For example, if you qualify for a $2,000 federal EITC and live in a state with a 20% match, you receive an extra $400 on your state tax return. This simple match system gives working families a noticeable boost at tax time.

Federal EITC ($2,000)×State Match Rate (20%)=State EITC Refund ($400)

Match percentages range widely: 5% in Louisiana and Oklahoma, 30% in Michigan and New York, up to 100% in Washington, D.C.

A few states handle things differently instead of using a basic percentage match:

• California, Minnesota, and Puerto Rico run their state credits through their own income formulas.
• Wisconsin bases its match percentage on family size, offering 4% for one child, 11% for two children, and 34% for three or more children.
• Washington works differently. Since the state has no income tax, its Working Families Tax Credit pays a flat refund, up to $1,255, directly to eligible households.

Refundable vs. Non-Refundable State Credits

Understanding whether your state credit is refundable or non-refundable is critical, as it determines whether you actually get money back or just owe less on your tax bill.

A refundable credit pays off any state income tax you owe first. If there is credit money left over, the state sends you the remaining balance as a check. For instance, if you owe $100 in state taxes but qualify for a $500 refundable EITC, the state covers the $100 you owe and sends you the remaining $400. Over 80% of participating states offer fully refundable credits.

Non-refundable credits can only bring your state tax bill down to zero.

If your credit is bigger than what you owe, you do not get the rest back. South Carolina offers an impressive-sounding 125% state EITC match, but because it is non-refundable, low-income filers who owe no state tax get no money back from it. Missouri, Ohio, and Utah also limit their programs to non-refundable credits.

Which States Offer a State EITC?

Checking if your state offers an EITC is a great first step when getting ready to file. State programs have grown over time, with Pennsylvania recently introducing a 10% refundable credit to help local workers.

Tax laws change over time, so it never hurts to double-check rates and rules with your state's tax department. You can find forms, calculators, and guidelines on your state tax agency website.

Who Can Get the EITC?

Qualifying for a state EITC usually starts with meeting the basic rules for the federal credit. The IRS looks at your income, tax filing status, and family size to decide if you qualify. For single filers with no kids, the income limit is much lower than for married couples with three or more children. You must also have income from a job or business, and your investment earnings must stay below federal limits.

Several states have expanded their rules to help people who get left out of the federal credit:

• Taxpayers filing with an ITIN: The federal EITC excludes filers who use an Individual Taxpayer Identification Number instead of a Social Security number. However, states like California, Colorado, Illinois, Minnesota, New Jersey, New Mexico, New York, and Washington allow ITIN filers to claim state credits.
• Younger working adults: Federal rules require childless workers to be at least 25 years old. States like Maine, Maryland, and New Jersey lower that age limit to 18 so young adults can get help, too.

How to Apply for Your State EITC

Claiming your credit is straightforward once you finish your federal numbers. Following these steps helps make sure you get every dollar without delays.

1.File Your Federal Tax Return First:

Complete your federal return and claim the EITC on IRS Form 1040 (and Schedule EIC if you have children). Your calculated federal credit figure serves as the baseline for your state credit.

2.Fill Out Your State Tax Return:

When working on your state return, look for the tax credits section. Enter your federal EITC dollar amount so your state can apply its match percentage.

3.Use Tax Filing Software:

Tax software automatically matches your federal numbers to your state's rules. Answering the questions accurately ensures the right state forms are completed and attached.

4.Check State Tax Agency Websites:

If you do your taxes by hand or want to be sure, visit your state's official tax website. They will have clear instructions and the forms you need. Sometimes, they have their own [EITC calculator](/tools/eitc-calculator/).

It's crucial to file both your federal and state taxes to make sure you get all the money you're owed. Don't leave money on the table!

The State Earned Income Tax Credit is a real benefit for individuals and families

By claiming this credit, you can get extra money back on your taxes, which can help with everyday costs. Remember to file your federal and state tax returns, and make sure you claim your EITC if you are eligible.

It's your hard-earned money, and it's there to help you!