Massachusetts
EARNED INCOME TAX CREDIT (EITC)
Rate (Fully-Refundable): 40% of the federal credit
Eligibility Requirements: All Massachusetts taxpayers who qualify for the federal credit are automatically eligible1.
Latest Legislative Action: In 2023, Gov. Maura Healey signed HB 4104, expanding the state EITC from 30% to 40% of the federal credit.4
- In July 2018, Governor Charlie Baker (R) approved a state budget for Fiscal Year 2019 that includes an expansion of the Massachusetts EITC from 23 to 30 percent of the federal credit.
CHILD TAX CREDIT (CTC)
Massachusetts does not currently offer a state-level CTC.
CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)
Rate (Fully-Refundable): $440 per dependent
Eligibility Requirements:5
- A dependent child under age 13;
- A disabled dependent or spouse; and/or
- A dependent age 65 or over.
Latest Legislative Actions: In 2023, Gov. Maura Healey passed a sweeping Tax Relief bill designed to combine the two existing dependent care deductions into one refundable state CTC valued at $440 per eligible child or dependent. 4
Notes: The state CDCTC is referred to as the Child and Family Tax Credit.
Source:
- Earned Income Tax Credit Information, Massachusetts Department of Revenue
- SB2397, The 193rd General Court of the Commonwealth of Massachusetts
- HB3770, The 193rd General Court of the Commonwealth of Massachusetts
- HB4104, The 193rd General Court of the Commonwealth of Massachusetts
- Child and Family Tax Credit, Massachusetts Department of Revenue