Iowa Earned Income Tax Credit Calculator
Figure basis: Official Iowa Department of RevenueThe Iowa earned income tax credit (EITC) is a state credit for working people with low to moderate income, set as 15% of your federal EITC. This calculator estimates your federal EITC from your earned income, filing status, and number of qualifying children using the IRS 2026 tables, then applies the Iowa rule to give your state credit. The Iowa credit is refundable. Enter your details to see both your estimated federal EITC and your Iowa credit. Figures are an estimate: the IRS computes the federal credit from $50 income bands, so your exact credit may differ by a few dollars. The state percentage is sourced from Iowa Department of Revenue and verified for 2026.
A single filer in Iowa with 2 children earning $25,000 has an estimated federal EITC of $7,082.23 and a Iowa credit of $1,062.34 (15% of the federal credit).
How the Iowa EITC works
The Iowa credit is built on the federal EITC. First the federal credit is found from your earned income, filing status, and qualifying children (it phases in, plateaus at a maximum, then phases out as income rises). Then Iowa applies 15% of your federal EITC. The Iowa credit is refundable, so if it is larger than the state tax you owe, you receive the difference as a refund.
federal EITC = phase-in, plateau, then phase-out per the IRS 2026 tables
Iowa EITC = federal EITC x Iowa percentage
Iowa keeps a refundable 15% credit even after moving to a flat tax
Iowa sets its earned income tax credit at 15% of the federal EITC, one of the more modest state matches, and it has held at that level for years. What makes the Iowa credit worth a second look is that it stayed refundable even as the state overhauled its income tax and moved to a single flat rate. In a flat-tax system a low earner can owe very little state tax, so a refundable credit is what actually delivers cash rather than just shaving a bill toward zero.
The math is simple: your federal EITC is computed first from earned income, filing status, and number of qualifying children, then Iowa applies 15%. Because 15% is a small slice, the Iowa amount looks modest next to the federal figure, and filers sometimes conflate the two. The number to plan around is the state slice, not the larger federal credit that produced it.
Refundability is the practical headline. If your 15% Iowa credit is larger than the Iowa income tax you owe, the remainder comes back as a refund. Enter your earned income, filing status, and number of qualifying children above, and the calculator handles both steps, showing your estimated federal EITC and the 15% Iowa credit that follows from it.
Iowa EITC: frequently asked questions
How much is the Iowa earned income tax credit?
The Iowa EITC is 15% of your federal EITC. For example, a single filer with 2 children earning $25,000 has an estimated federal EITC of $7,082.23 and a Iowa credit of about $1,062.34. Enter your own details above for your figure.
Is the Iowa EITC refundable?
The Iowa credit is refundable, so if it is larger than the state tax you owe, you receive the difference as a refund.
Do I qualify for the Iowa earned income credit?
Generally, if you qualify for the federal EITC you also qualify for the Iowa credit, which is based on it. You need earned income, a valid Social Security number, and investment income under the federal limit ($12,200 for 2026).
How is the Iowa EITC calculated?
First your federal EITC is computed from your earned income, filing status, and number of qualifying children using the IRS 2026 tables. Then Iowa applies 15% of your federal EITC. This calculator does both steps for you.
Official sources
- Iowa EITC percentage and refundability: Iowa Department of Revenue, as at Jul 15, 2026.
- Federal EITC 2026 parameters: IRS Rev. Proc. 2025-32, Internal Revenue Service.
Reviewed by the CalculatorHub team, edited by James Graham, 15 July 2026. See our methodology. General information, not tax advice; your exact credit is set on your tax return.