State credits
Delaware earned income tax credit
Delaware is the only state that asks you to choose between two versions of its credit, a large one that only cuts tax and a small one that is paid out.
Delaware and federal earned income credit calculator
Credits for tax year 2025, head of household, 2 qualifying children
$10,933
| Federal EITC | $5,746 |
| Nonrefundable option, 20% (nonrefundable) | $1,149 |
| Child tax credit, lowers your tax | $638 |
| Additional child tax credit, refundable | $3,400 |
Phase-out: each extra dollar lowers the federal credit; federal maximum $7,152, nothing from $57,310.
Without your state tax, the nonrefundable 20% is shown; it is worth only up to your Delaware tax. With no tax, the refundable 4.5% (259 dollars) is the better choice.
$362 of child tax credit is lost: it exceeds your federal tax and the refundable cap.
Rules of the Delaware creditThe Delaware Earned Income Tax Credit comes in two forms and you take one of them. The nonrefundable form equals 20% of the federal credit and can reduce your Delaware income tax to zero, but no further. The refundable form equals 4.5% of the federal credit and is paid out even when you owe no Delaware tax. For a family with two children at the 2025 federal maximum of $7,152, the first is worth up to $1,430 if the tax is at least that high, the second $322 in any case. The better choice depends on your Delaware tax before credits: enter it in the calculator above and it picks the larger. The credit is claimed on Schedule II of Form PIT-RES. Proposals to raise the refundable share have been introduced in the legislature, but we found none enacted on November 1, 2026.
IRS and state rules read by Radif Partners · Editorial policy · Method and sources
The Delaware credit in one table
| Name | Delaware Earned Income Tax Credit |
| Form | Form PIT-RES, Schedule II |
| Administered by | Delaware Division of Revenue |
| Tax year 2025 | 20% nonrefundable or 4.5% refundable, your choice |
| Tax year 2026 | 20% nonrefundable or 4.5% refundable, your choice |
| Refundable | refundable or not, by option |
| ITIN filers | not accepted (same SSN rule as federal) |
| Worker without a qualifying child | federal age rule, 25 to 64 |
Which option is better
For most households with income near the federal maximum, Delaware tax before credits is lower than 20% of the federal credit, so the nonrefundable form is cut back to the tax. The break-even point is simple: the refundable option wins when your Delaware tax is below 4.5% of your federal credit. With two children and $20,000 of wages, that means a tax under about $322.
The rates are set in Title 30 of the Delaware Code.
Delaware credit by income, tax year 2025
| Earned income | No child | 1 child | 2 children | 3 or more |
|---|---|---|---|---|
| $5,000 | $77 | $342 | $402 | $452 |
| $10,000 | $130 | $682 | $802 | $902 |
| $15,000 | $62 | $866 | $1,202 | $1,352 |
| $20,000 | $0 | $866 | $1,430 | $1,609 |
| $25,000 | $0 | $812 | $1,360 | $1,539 |
| $30,000 | $0 | $652 | $1,149 | $1,328 |
| $40,000 | $0 | $333 | $728 | $907 |
| $50,000 | $0 | $13 | $307 | $486 |
| $60,000 | $0 | $0 | $0 | $64 |