State credits

New Jersey earned income tax credit

New Jersey pays 40% of the federal credit and opens it to younger workers without a child, who get nothing from the IRS.

New Jersey and federal earned income credit calculator

Tax year

Interest, unemployment, pensions

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

Federal credit without a child: 25 to 64

Federal limit $11,950

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Credits for tax year 2025, head of household, no qualifying child

$909

Federal EITC$649
New Jersey Earned Income Tax Credit$260
Child tax credit, lowers your tax$0
Additional child tax credit, refundable$0

Plateau: the federal credit is at its maximum; federal maximum $649, nothing from $19,104.

Rules of the New Jersey credit

The New Jersey Earned Income Tax Credit equals 40% of the federal earned income credit and is refundable. It is claimed on Form NJ-1040. A family with two children at the 2025 federal maximum of $7,152 receives $2,861 from New Jersey. New Jersey also allows the credit to a worker without a qualifying child from age 18, below the federal floor of 25, computing it as if the federal age test were met: a 21-year-old with $9,000 of wages in 2025 receives $260, against nothing from the IRS. The other federal rules apply, including the Social Security number test. New Jersey also has a separate child tax credit for young children, which this site does not add. The Division of Taxation page sets out the amounts by year.

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

The New Jersey credit in one table

Read at the official source on November 1, 2026.
NameNew Jersey Earned Income Tax Credit
FormForm NJ-1040
Administered byNew Jersey Division of Taxation
Tax year 202540% of the federal credit
Tax year 202640% of the federal credit
Refundablerefundable
ITIN filersnot accepted (same SSN rule as federal)
Worker without a qualifying childfrom age 18

Younger workers

The 18-to-24 rule is New Jersey's own. Such a worker files a New Jersey return and claims the credit there even though the federal return shows no earned income credit. The Division of Taxation page explains how.

New Jersey 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 federal credit is added by the calculator above.
Earned incomeNo child1 child2 children3 or more
$5,000$154$684$804$904
$10,000$260$1,364$1,604$1,804
$15,000$125$1,731$2,404$2,704
$20,000$0$1,731$2,861$3,218
$25,000$0$1,624$2,720$3,077
$30,000$0$1,304$2,298$2,656
$40,000$0$665$1,456$1,814
$50,000$0$26$614$971
$60,000$0$0$0$129

Questions people ask

What is the largest New Jersey earned income credit for 2025?

For tax year 2025, filed in 2026, the calculator finds at most $1,731 with one qualifying child, $2,861 with two and $3,218 with three or more, and $260 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 New Jersey credit refundable?

Yes. New Jersey Earned Income Tax Credit is refundable: when it is larger than the New Jersey tax you owe, the difference is paid to you, and a household with no New Jersey 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 Form NJ-1040.

Who runs the New Jersey credit and where is it claimed?

New Jersey Division of Taxation administers it, and the claim goes on Form NJ-1040, filed with your New Jersey 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.

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IRS and state pages behind this page

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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