Fourteen states plus the District of Columbia have enacted a child tax credit, and 31 states plus the District of Columbia and Puerto Rico have enacted their own version of the federal Earned Income Tax Credit (EITC). State child tax credits and EITCs build on the success of both federal credits by helping families afford the basics and reducing poverty; this, in turn, helps them thrive in the long run through improved child and maternal health, school achievement, and other benefits, research has found. Because people of color, women, and people who immigrated to the U.S. are overrepresented in low-paid work and in families with little to no earnings — due in part to discrimination, bias, and other structural barriers to opportunity — these two state credits are an important tool for advancing equity. And by bolstering families’ incomes, they also boost local communities and state economies.
In 2024, several states and the District of Columbia improved existing credits or enacted new ones. They include:
New child tax credits: Colorado and the District of Columbia enacted new child tax credits, with Colorado’s being the first permanent child tax credit to offer an additional boost to children under 6. Early childhood is a critical time for child development and a time when families experience higher poverty rates due to the challenge of balancing caregiving and earning income. An increased child tax credit for young children will support families when they need it most.
Advance monthly payments: Minnesota became the first state to implement advance periodic payments for its child tax credit. Modeled after the 2021 federal Child Tax Credit advance payments, Minnesota’s advance periodic payments will put cash in families’ pockets regularly and help them better meet their basic needs.
Many States Have Their Own EITC or CTC
States with a state Earned Income Tax Credit or Child Tax Credit
California
State Earned Income Tax Credit, 2024
Percentage of Federal Credit
85% of federal credit, up to 50% of the federal phaseout amount
Refundable
Yes
Individual Taxpayer Identification Number Filers
Yes
Individuals Without Children in the Home
Workers age 18 and older without children in the home
Other Eligible
$1,117 Young Child Tax Credit for families with children under 6 (available to families with 0 income) $1117 Foster Youth Tax Credit
California’s credit is available to working families and individuals with wage income below $30,950 depending on family size. The credit is worth 85% of a household’s federal EITC until household income reaches half of the level at which the federal credit is fully phased in; it then begins phasing out at varying rates, depending on family size. The maximum credit ranges from $285 for workers without dependent children to $3,529 for workers with three or more children, plus a $1,117 Young Child Tax Credit for families with children under 6 and a $1,117 Foster Youth Tax Credit for individuals who were in foster care at age 13 or older and placed through the California foster care system. The value of the credit is set each year by the legislature and will be updated for tax year 2024 when available. For a full list of parameters see https://www.ftb.ca.gov/about-ftb/newsroom/caleitc/eligibility-and-credit-information.html.
State Child Tax Credit, 2024
Maximum Credit
$1,117 per household
Refundable
Yes
Individual Taxpayer Identification Number Filers
Yes
Eligibility
Under age 6
Phase Out Begins
$25,775 of earnings
Phase Out Ends
$30,932 of earnings
California’s Young Child Tax Credit is part of the state’s Earned Income Tax Credit. The portion of the credit for young children is available to families with no earned income (as most other state child tax credits are). The credit value and income limits are set by the legislature each year and will be updated for tax year 2024 when available.
Colorado’s credit is 50% of the federal EITC for tax year 2024 and will be up to a maximum of 50% of the federal EITC in subsequent years, depending on estimated state revenue growth. For tax year 2025, the credit will be worth at least 35% of the federal credit and for tax year 2026 and later, it will be worth at least 25% of the federal credit.
State Child Tax Credit, 2024
Maximum Credit
$3,200 per eligible child under 6, $2,400 per eligible child over 5 and under 17
Refundable
Yes
Individual Taxpayer Identification Number Filers
Yes
Eligibility
Under age 17
Phase Out Begins
$30,000 of AGI (joint), $20,000 of AGI (single)
Phase Out Ends
$100,000 of AGI (joint), $90,000 of AGI (single)
Colorado’s child tax credit income limits are adjusted for inflation and will be updated for tax year 2024 when available.
After tax year 2024, Colorado’s family affordability tax credit amount and phase out rate will vary depending on estimated state revenue growth with the possibility of no credit being available in years with low revenue growth. The credit amount and phase out rate will be adjusted for inflation beginning tax year 2025.
Workers without children in the home with incomes up to twice the poverty line
Other Eligible
Non-custodial parents
The District of Columbia’s credit will increase from 70% for tax year 2024 to 85% for tax years 2025-2028 and to 100% starting tax year 2029 and later for adults with dependent children. Tax filers can opt-in to receive monthly payments if the credit exceeds a certain amount. Otherwise, the credit is paid as a lump-sum. The DC EITC also counts the children of non-custodial parents, as long as the worker is aged 18 to 30 and the worker pays child support and is up to date on those payments. The credit is calculated using a different formula for workers without children but can be up to 100% of the federal credit. More information can be found at https://eitc.dc.gov/
State Child Tax Credit, 2024
Maximum Credit
Available Tax Year 2025
Refundable
Individual Taxpayer Identification Number Filers
Eligibility
Phase Out Begins
Phase Out Ends
The District of Columbia’s refundable Child Tax Credit will be available starting tax year 2025. For families filing single, married filing jointly, and head of household, the credit will be worth $420 for each child under the age of 6 for up to 3 children, and for families married filing separately, the credit will be worth $210 for each child. The credit and income limits will be adjusted for inflation starting tax year 2026. The phase out begins between $120,000 and $240,000 depending on filing status. The credit will be available to families with children without a Social Security number and families with no income.
Idaho’s child tax credit is worth $205 for each child for tax years 2018-2025. If the child is in the custody of one or both of the parents for more than half of the tax year, a court order or written verification from a custodial parent that they will not claim the credit can allow a noncustodial parent to claim the state child tax credit.
Maine’s refundable EITC is worth 50% of the federal credit for eligible individuals without children and 25% for others.
State Child Tax Credit, 2024
Maximum Credit
$300 per qualifying child and dependent
Refundable
Yes
Individual Taxpayer Identification Number Filers
No
Eligibility
Under age 17
Phase Out Begins
$400,000 of ME AGI (joint), $200,000 of ME AGI (all others)
Phase Out Ends
$440,000 of ME AGI (joint), $240,000 of ME AGI (all others)
People with ITINs will be able to claim Maine’s child tax credit beginning in tax year 2026. The credit has no limit on the number of dependents who can be claimed. The credit will be indexed to inflation starting January 1, 2025.
Maryland’s credit is 45% of the federal credit for families with children in the home and 100% for individuals without a qualifying child. Maryland also offers a non-refundable EITC set at 50% of the federal credit. In effect, taxpayers may claim either the refundable credit or the non-refundable credit, but not both.
Survivors of domestic abuse who would otherwise be ineligible
In Massachusetts, survivors of domestic violence can file their own tax returns and remain eligible for the EITC. (Otherwise, survivors separated from a spouse must either file joint tax returns with an abuser or claim head of household status, for which they may not be eligible.)
State Child Tax Credit, 2024
Maximum Credit
$440 per dependent
Refundable
Yes
Individual Taxpayer Identification Number Filers
Yes
Eligibility
Dependents under age 13, over age 64, or with a disability
Credit increases by $970 for taxpayers with 1 qualifying older child, $2,210 for 2, and $2,630 for 3 or more
Minnesota’s Working Family Credit, unlike the other credits shown in this table, is structured as a percentage of income rather than a percentage of the federal credit. Older children are children over 17 and disabled, under 19, or under 24 and a full-time student. The credit amount for older children begins phasing out at the same income levels as Minnesota’s Child Tax Credit: $35,000 (joint) or $29,500 (single) of the greater of AGI or earned income. The credit decreases by 9% of income in excess of the threashold amounts. The earned income and qualifying older child amounts are adjusted for inflation annually. The phase out thresholds are also adjusted for inflation and will be updated for tax year 2024 when available.
State Child Tax Credit, 2024
Maximum Credit
$1,750 per child
Refundable
Yes
Individual Taxpayer Identification Number Filers
Yes
Eligibility
Under age 18
Phase Out Begins
$35,000 (joint) or $29,500 (single) of greater of AGI or earned income
Phase Out Ends
$52,495 (joint) or $46,995 (single) of greater of AGI or earned income. Amounts increase by $14,583 for each additional qualifying child.
For tax year 2025 and later, families will be able to choose to receive advance periodic payments of Minnesota’s Child Tax Credit. Families would receive advance payments worth half of the credit during the second half of 2025, and the remaining value of the credit would be paid when families file taxes for 2025. The credit amount is adjusted for inflation annually after tax year 2025 and the phaseout thresholds are adjusted for inflation annually after tax year 2023. The phaseout thresholds will be updated for tax year 2024 when available. Families with children over 17 may qualify for refundable credits through the Minnesota Working Family Credit.
New Mexico’s child income tax credit is also available for children with disabilities of any age and children under 24 who are full-time students. As income increases, the credit amount decreases but never fully phases out. The credit amount is adjusted annually for inflation and will be updated for tax year 2024 when available.
New York non-custodial parents who meet certain requirements may claim the greater of 20% of the federal credit that they would have received with a qualifying child, or 2.5 times the federal credit for workers without qualifying children.
State Child Tax Credit, 2024
Maximum Credit
The greater of: 33% of federal CTC, or $100 per qualifying child
Refundable
Yes
Individual Taxpayer Identification Number Filers
Yes
Eligibility
Under age 17
Phase Out Begins
If filer does not qualify for federal CTC: $110,000 of NY AGI (joint); $75,000 (single or head of household); $55,000 (married filing separately)
Phase Out Ends
N/A
In August of 2024, eligible families will receive a supplemental Empire State Child Credit for tax year 2023. The maximum supplemental credit will equal 100% of the Empire State Child Credit for families whose federal AGI is less than $10,000, phasing down to 25% for families whose federal AGI is $50,000 or greater. To qualify for New York’s Empire State Child Credit, families must either already qualify for the federal Child Tax Credit or have $110,000 or less in New York AGI for joint filers, $75,000 or less for single filers, or $55,000 for separate filers.
Oregon’s child tax credit is available for up to five children per family. The credit value and income limits are adjusted for inflation annually and will be updated for tax year 2024 when available. The credit is not available to tax filers who are married but file separately.
$54,000 (joint), $43,000 (single or head of household), and $27,000 of modified AGI (married filing separately) of modified AGI
Phase Out Ends
$64,000 (joint), $53,000 (single or head of household, and $37,000 (married filing separately) of modified AGI. Threshold is $10,000 higher with each additional child.
Beginning tax year 2025, children aged 4 will be included in Utah’s child tax credit.
Delaware’s credit is partially refundable. Families can choose the higher of a refundable credit worth up to 4.5% of the federal EITC or a non-refundable credit worth up to 20% of the federal EITC.
South Carolina’s credit is non-refundable and is less generous than a 5 percent refundable EITC because workers with very low incomes tend to have little to no tax liability.
Virginia’s credit is partially refundable. Families can choose the higher of a refundable credit worth up to 15% of the federal EITC or a non-refundable credit worth up to 20% of the federal EITC for tax years 2022-2025.
Follows a separate schedule, maximum credit between $315-$1,255 based on family size
Refundable
Yes
Individual Taxpayer Identification Number Filers
Yes
Other Eligible
Individuals who are married but file taxes separately
Washington enacted a tax rebate in 2008 but never funded it. In 2021, the state enacted an updated version of the rebate, the Working Families Tax Credit. In 2023, the first year it was available, the cash rebate was worth between $300 – $1,200 depending on household size and income level. The rebate amount is adjusted annually for inflation and will be updated for tax year 2024 when available. It is structured as a sales tax exemption in the form of a refund, but it functions similarly to an EITC and eligibility is based on receipt of the federal EITC. Beginning in 2024, individuals can apply for a refund for credits they were eligible for but did not claim for up to three years prior.
Follows a separate schedule, maximum credit between $1,656-$7,173 based on family size
Refundable
Yes
Individual Taxpayer Identification Number Filers
No
Individuals Without Children in the Home
Workers age 19 and older without children in the home
Puerto Rico residents are ineligible for the federal EITC. In 2021, the American Rescue Plan Act provided $600 million in federal funds to improve Puerto Rico’s Work Tax Credit. It provides a maximum credit of $1,656 to $7,173 based on income and family size. It is adjusted annually for inflation and will be updated for tax year 2024 when available. It also expands eligibility for those who are self-employed and workers without children in the home who are 19 years of age and older. For additional information about Puerto Rico’s EITC parameters, see https://espaciosabiertos.org/en/credito-por-trabajo-para-incentivar-nuestra-economia/.
Some states have also committed to making it easier for families to receive the tax credits for which they are eligible by opting into the IRS’ Direct File program. Direct File is a simple, cost-effective, and easy-to-implement system that allows families to file their taxes directly with the IRS. So far, Connecticut, Maine, New Jersey, New Mexico, North Carolina, Oregon, and Pennsylvania have joined 12 other states that participated in the 2024 pilot in the permanent Direct File program, which will make it easier for families to receive millions of dollars in tax credits during the 2025 filing season.
These credits are among several income assistance policies such as guaranteed income programs and Temporary Assistance for Needy Families that provide families with a stronger foundation and begin to address income-related racial inequities. Unrestricted and unconditional cash gives families the autonomy to best address their individual needs while ensuring they can buy necessary items, like diapers and personal hygiene products, that other economic security programs don’t cover.
Lawmakers in states without their own child tax credit or EITC should enact them. States that have limited their credits should make these credits refundable. States should also expand their credits to those left out of each federal credit, particularly by ending exclusions for people who are immigrants who do not have a Social Security number.
