State credits
Montana earned income tax credit
Montana doubled its credit from tax year 2026 under a 2025 law. For 2025 returns, the old rate still applies.
Montana and federal earned income credit calculator
Credits for tax year 2025, head of household, 2 qualifying children
$10,886
| Federal EITC | $6,589 |
| Montana Earned Income Tax Credit | $659 |
| Child tax credit, lowers your tax | $238 |
| Additional child tax credit, refundable | $3,400 |
Phase-out: each extra dollar lowers the federal credit; federal maximum $7,152, nothing from $57,310.
$762 of child tax credit is lost: it exceeds your federal tax and the refundable cap.
Rules of the Montana creditThe Montana Earned Income Tax Credit is refundable and equals 10% of the federal earned income credit for tax year 2025. House Bill 337 of the 2025 session, chapter 227 of the session laws, raises it to 20% for tax years beginning after December 31, 2025. A family with two children at the federal maximum therefore receives $715 for 2025, filed in 2026, and $1,463 for 2026, filed in 2027, since the federal maximum itself rises to $7,316. Montana takes the amount from the federal return, so the federal eligibility rules apply, including the age range for workers without a child. The credit is claimed on Form 2. Switch the tax year in the calculator above to compare both years for your household.
IRS and state rules read by Radif Partners · Editorial policy · Method and sources
The Montana credit in one table
| Name | Montana Earned Income Tax Credit |
| Form | Form 2, Schedule III |
| Administered by | Montana Department of Revenue |
| Tax year 2025 | 10% of the federal credit |
| Tax year 2026 | 20% 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 |
Planning for the 2027 filing season
The doubling is one of the larger state changes for 2026. A household that receives $300 from Montana for 2025 can expect roughly twice as much for 2026 at the same income. The enrolled text is in the session law, chapter 227.
Montana credit by income, tax year 2025
| Earned income | No child | 1 child | 2 children | 3 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 |