State credits
Louisiana earned income credit
Louisiana has one of the smallest state shares, 5% of the federal credit, but it is refundable.
Louisiana and federal earned income credit calculator
Credits for tax year 2025, head of household, 2 qualifying children
$10,585
| Federal EITC | $7,152 |
| Louisiana Earned Income Credit | $358 |
| Child tax credit, lowers your tax | $0 |
| Additional child tax credit, refundable | $3,075 |
Plateau: the federal credit is at its maximum; federal maximum $7,152, nothing from $57,310.
$1,325 of child tax credit is lost: it exceeds your federal tax and the refundable cap.
Rules of the Louisiana creditThe Louisiana Earned Income Credit equals 5% of the federal earned income credit and is refundable. It is set in section 47:297.8 of the Louisiana Revised Statutes and claimed on Form IT-540. With two children at the 2025 federal maximum of $7,152, it adds $358; with one child, $216; with three or more, $402; without a qualifying child, up to $32. It follows the federal eligibility rules, so the calculation starts from the federal amount and nothing else is tested. Louisiana reformed its income tax in 2024, moving to a single rate from 2025, and the statute on the earned income credit kept the 5% rate. Because the credit is refundable, the tax changes do not reduce it. The text of the statute is on the legislature's website.
IRS and state rules read by Radif Partners · Editorial policy · Method and sources
The Louisiana credit in one table
| Name | Louisiana Earned Income Credit |
| Form | Form IT-540 |
| Administered by | Louisiana Department of Revenue |
| Tax year 2025 | 5% of the federal credit |
| Tax year 2026 | 5% of the federal credit |
| Refundable | refundable |
| ITIN filers | not accepted (same SSN rule as federal) |
| Worker without a qualifying child | federal age rule, 25 to 64 |
Small, but worth claiming
At 5%, the Louisiana credit is a few hundred dollars at most. It is still paid only if you file the state return and claim it there, even when you owe no Louisiana tax. The text is at R.S. 47:297.8.
Louisiana credit by income, tax year 2025
| Earned income | No child | 1 child | 2 children | 3 or more |
|---|---|---|---|---|
| $5,000 | $19 | $85 | $101 | $113 |
| $10,000 | $32 | $170 | $201 | $226 |
| $15,000 | $16 | $216 | $301 | $338 |
| $20,000 | $0 | $216 | $358 | $402 |
| $25,000 | $0 | $203 | $340 | $385 |
| $30,000 | $0 | $163 | $287 | $332 |
| $40,000 | $0 | $83 | $182 | $227 |
| $50,000 | $0 | $3 | $77 | $121 |
| $60,000 | $0 | $0 | $0 | $16 |