State credits

Indiana earned income credit

Indiana follows the federal credit closely and adds a tenth of it, paid out whether or not you owe Indiana tax.

Indiana and federal earned income credit calculator

Tax year

Interest, unemployment, pensions

More details: age, children's ages, investment income, state tax

Matters only without a qualifying child

Federal limit $11,950

SSNs valid for work for all?

Everything you enter stays in this browser: nothing is sent or stored. Married filing separately: only if you lived apart from your spouse for the last six months of the year.

Credits for tax year 2025, head of household, 2 qualifying children

$10,754

Federal EITC$6,378
Indiana Earned Income Credit$638
Child tax credit, lowers your tax$338
Additional child tax credit, refundable$3,400

Phase-out: each extra dollar lowers the federal credit; federal maximum $7,152, nothing from $57,310.

$662 of child tax credit is lost: it exceeds your federal tax and the refundable cap.

Rules of the Indiana credit

The Indiana Earned Income Credit equals 10% of the federal earned income credit and is refundable, so a household with no Indiana tax still receives it. It is claimed on Schedule IN-EIC with Form IT-40. With two children at the 2025 federal maximum of $7,152, the Indiana credit is $715; with one child, $433; with three or more, $805; without a qualifying child, up to $65. Indiana uses the federal eligibility rules, so the age range, the investment income limit of $11,950 for 2025 and the Social Security number test all apply. Indiana also has county income taxes, but the county taxes have no earned income credit of their own. The Department of Revenue lists the credit with the other individual tax credits. For 2026, the rate in the law is still 10%, applied to the higher federal amounts.

IRS and state rules read by Radif Partners · Editorial policy · Method and sources

The Indiana credit in one table

Read at the official source on November 1, 2026.
NameIndiana Earned Income Credit
FormSchedule IN-EIC
Administered byIndiana Department of Revenue
Tax year 202510% of the federal credit
Tax year 202610% of the federal credit
Refundablerefundable
ITIN filersnot accepted (same SSN rule as federal)
Worker without a qualifying childfederal age rule, 25 to 64

What 10% means in practice

The Indiana credit is small next to the federal one, but it follows it exactly: when the federal credit is at its plateau, so is Indiana's, and when the federal credit stops, at $57,310 of income for a single parent of two in 2025, the Indiana credit stops too. The Department of Revenue gives the details.

Indiana's county taxes

Every Indiana county levies its own income tax, collected on the same IT-40. Those county taxes have no earned income credit, so a household owes them even when the state credit is paid out. A family with two children and $20,000 of wages in Marion County pays its county tax on income above the exemptions while still receiving the full $715 from the state.

Indiana credit by income, tax year 2025

State credit only, before any cap at state tax. Single filer without a child, head of household with children, age 30, no other income; the calculator above adds the federal credit.
Earned incomeNo child1 child2 children3 or more
$5,000$38$171$201$226
$10,000$65$341$401$451
$15,000$31$433$601$676
$20,000$0$433$715$805
$25,000$0$406$680$769
$30,000$0$326$575$664
$40,000$0$166$364$453
$50,000$0$7$153$243
$60,000$0$0$0$32

Questions people ask

What is the largest Indiana earned income credit for 2025?

For tax year 2025, filed in 2026, the calculator finds at most $433 with one qualifying child, $715 with two and $805 with three or more, and $65 for a worker without a qualifying child. These are the peaks of the curve for a head of household; your amount depends on your earned income and AGI.

Is the Indiana credit refundable?

Yes. Indiana Earned Income Credit is refundable: when it is larger than the Indiana tax you owe, the difference is paid to you, and a household with no Indiana tax at all receives the full amount. That makes it worth the same to a worker with low income as to one who owes tax. You claim it on Schedule IN-EIC.

Who runs the Indiana credit and where is it claimed?

Indiana Department of Revenue administers it, and the claim goes on Schedule IN-EIC, filed with your Indiana income tax return for the same year. It starts from your federal earned income credit, so the federal return comes first and its figures carry over. Free File, the IRS free filing program, and VITA sites prepare state returns in many states at no charge.

Check next

EITC calculator

Earned income, children, state: the federal EITC, your state credit and the child tax credit, added up for 2025 or 2026.

All state credits

Every state credit side by side: rate for 2025 and 2026, refundable or not, ITIN and age rules, ranked for your household.

How much is the EITC

The maximum by number of children, the amount at typical incomes, and what a state adds on top.

Income limits

Where the credit stops in 2025 and 2026, by children and filing status, and where it starts to fall.

How to claim

File a return, add Schedule EIC, claim the state credit: free routes through IRS Free File and VITA.

IRS and state pages behind this page

Written by

Independent publisher of a calculator that adds the federal earned income credit, the state earned income credits and the child tax credit for one household, from the IRS revenue procedures and the state tax codes

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Federal and state earned income credits 2026, read in the IRS revenue procedures and each state tax code, last checked on