In addition to the federal EITC, state-level EITCs can make more money available to workers with lower incomes while showing a state’s effort to reduce poverty among working families. Most states with state EITCs set their benefit as a percentage of the federal credit, making them easy to deliver. 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:
- States Can Enact or Expand Child Tax Credits and Earned Income Tax Credits to Build Equitable, Inclusive Communities and Economies
- Policy Basics: State Earned Income Tax Credits
- State Earned Income Tax Credits and Minimum Wages Work Best Together
- How Much Would a State Earned Income Tax Credit Cost in Fiscal Year 2021?
States with a state Earned Income Tax Credit or Child Tax Credit
Center on Budget and Policy Priorities | cbpp.org
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.