Indiana · Earned Income Tax Credit (EITC)
Earned Income Tax Credit (EITC) in Indiana (2026)
Refundable credit up to $7,430 for low-to-moderate income working families. Indiana has a flat 2.95% income tax, so a Indiana filer's combined marginal rate on the next dollar at $61,944 of income is about 14.95% (12% federal + 2.95% IN).
2026 savings example for Indiana
Planning estimate for a single filer earning $61,944 (Indiana median household income in LevyIO's state dataset) who claims a $5,000 credit. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; IN tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$5,000
Federal savings
$5,000
$5,253 → $253 · 12% bracket
IN state savings
$0
Federal credit only; check for a state credit
Combined marginal rate
14.95%
Credits do not depend on the bracket
Statutory maximum for this item in LevyIO's dataset: $7,430.
Federal × Indiana marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The IN column is the state marginal rate at the midpoint of each range. A credit saves its face value regardless of bracket.
| Federal bracket | Gross income (single) | IN marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 2.95% | 12.95% | $1,000 |
| 12% | $28,500 - $66,500 | 2.95% | 14.95% | $1,000 |
| 22% | $66,500 - $121,800 | 2.95% | 24.95% | $1,000 |
| 24% | $121,800 - $217,875 | 2.95% | 26.95% | $1,000 |
| 32% | $217,875 - $272,325 | 2.95% | 34.95% | $1,000 |
| 35% | $272,325 - $656,700 | 2.95% | 37.95% | $1,000 |
| 37% | Over $656,700 | 2.95% | 39.95% | $1,000 |
Eligibility & forms
Low-to-moderate income workers
- Income limits vary by children
- Must have earned income
- Cannot be dependent
Federal forms: Schedule EIC, Form 1040
Indiana filing notes
Account for county tax on top of 2.95%. Indiana uses federal AGI with state adjustments. Property taxes are capped. College and teacher credits available.
Common mistakes: Not filing to claim; Investment income over $11,000.
Frequently asked questions
How much can the Earned Income Tax Credit (EITC) save a Indiana taxpayer in 2026?
Credits reduce tax dollar-for-dollar. In LevyIO's example, a single filer with $61,944 of income (the Indiana median household income in our state dataset) and a $5,000 credit would cut 2026 federal tax from $5,253 to $253, a $5,000 saving. Whether Indiana offers a matching state credit depends on the IN return, so the estimate counts federal savings only.
What is the Indiana income tax rate for 2026?
Indiana has a flat 2.95% income tax. The IN standard deduction in LevyIO's dataset is $0 single / $0 married. Low flat 2.95%. County taxes add 0.5-2.96%. Uses federal AGI. Property tax caps 1-3%.
Who qualifies for the Earned Income Tax Credit (EITC) in Indiana?
Low-to-moderate income workers. The federal rules are the same in every state; the requirements are: Income limits vary by children; Must have earned income; Cannot be dependent. Indiana filers should confirm on the IN return whether the state follows the federal treatment.
Which forms do I file to claim the Earned Income Tax Credit (EITC)?
Federal: Schedule EIC, Form 1040. Indiana: check the Indiana Department of Revenue instructions for the matching state schedule. Common mistakes: Not filing to claim; Investment income over $11,000.
Earned Income Tax Credit (EITC) in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.