Vermont Earned Income Tax Credit Calculator
Figure basis: Official Vermont General Assembly, 32 V.S.A. 5828bThe Vermont earned income tax credit (EITC) is a state credit for working people with low to moderate income, set as 100% of your federal EITC if you have no qualifying children, otherwise 38%. 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 Vermont rule to give your state credit. The Vermont credit is refundable. Enter your details to see both your estimated federal EITC and your Vermont 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 Vermont General Assembly, 32 V.S.A. 5828b and verified for 2026.
A single filer in Vermont with 2 children earning $25,000 has an estimated federal EITC of $7,082.23 and a Vermont credit of $2,691.25 (38% of the federal credit).
How the Vermont EITC works
The Vermont 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 Vermont applies 100% of your federal EITC if you have no qualifying children, otherwise 38%. The Vermont 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
Vermont EITC = federal EITC x 100% (no qualifying children) or 38% (with children)
Editor's insight: Vermont now pays childless workers the most
Vermont already ran one of the most generous state EITCs at 38% of the federal credit, and it is refundable, so it pays out in full regardless of your Vermont tax. Act 71 of 2025 added a striking twist: filers with no qualifying children now receive 100% of the federal EITC, while those with children stay at 38%. Vermont is effectively doubling down on the group the federal credit has historically shortchanged, workers without kids, whose federal EITC is small to begin with.
That design flips the usual intuition. For a childless worker, the Vermont credit fully matches the modest federal amount, turning a token federal credit into a doubled combined benefit. For a parent, the 38% share applies to a much larger federal figure, so the dollar amounts stay bigger even at the lower rate. The calculator's qualifying-children selector is doing more work in Vermont than in a flat-rate state: switching between 0 and 1 child changes the rate itself, not just the base it is applied to.
Compared with neighbors, Vermont outpaces Maine (25% with children) and New Hampshire, which has no state EITC at all. If you split time across state lines, confirm which state you actually file in, because the Vermont rule applies only to a Vermont return. Enter your income and family details above to see how the 100% or 38% branch lands for you.
Vermont EITC: frequently asked questions
How much is the Vermont earned income tax credit?
The Vermont EITC is 100% of your federal EITC if you have no qualifying children, otherwise 38%. For example, a single filer with 2 children earning $25,000 has an estimated federal EITC of $7,082.23 and a Vermont credit of about $2,691.25. Enter your own details above for your figure.
Is the Vermont EITC refundable?
The Vermont 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 Vermont earned income credit?
Generally, if you qualify for the federal EITC you also qualify for the Vermont 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). Split into two rates by Act 71 of 2025 (32 V.S.A. 5828b), effective for tax year 2025 onward: 100% of the federal credit with no qualifying children, 38% with one or more.
How is the Vermont 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 Vermont applies 100% of your federal EITC if you have no qualifying children, otherwise 38%. This calculator does both steps for you.
Official sources
- Vermont EITC percentage and refundability: Vermont General Assembly, 32 V.S.A. 5828b, 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.