EARNED INCOME TAX CREDIT (EITC)

Rate (Fully-Refundable): 

Rhode Island offers a refundable EITC equal to 16 percent of the federal credit, which changed from 15 percent in 2024 with the passing of House Bill 5200. 

15% of the federal credit¹

Eligibility Requirements: All Rhode Island taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action: 

Legislation (S0040) is pending to increase the EITC to 17 percent starting January 1, 2026. 

In June of 2016, Gov. Gina Raimondo signed off on a new $8.9 million state budget that included an increase in the state’s EITC from 12.5% to 15% of the federal credit. The expansion marks the second year in a row that the legislature improved the state credit, which was reduced from 25% to 10% in 2014.

CHILD TAX CREDIT (CTC)

Rhode Island does not currently offer a state-level CTC.

Latest Legislative Action:

House Bill 7924 (2024-H 7924): Proposed a refundable $1,000 annual tax credit per dependent child under 18 for single filers earning up to $100,000 and joint filers up to $150,000. This bill was introduced in March 2024 but was held for further study and did not advance. 

Senate Bill 2575 (2024-S 2575): A companion bill to H7924, with identical provisions. It was also held for further study in May 2024 and did not progress. 

On June 27, 2022, Gov. Dan McKee passed a one-time child tax rebate as part of the FY2023 state budget. The Rhode Island Child Tax Rebate was issued to eligible families in October 2022 and valued at $250 per child for up to three children per household.²

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Rate (Non-Refundable):² 25% of federal CDCTC or up to $525

For the 2024 tax year, the maximum federal credit is $6,000, making the state credit up to $1,500.⁴

Eligibility: All Rhode Island taxpayers who qualify for the federal credit are automatically eligible.