EARNED INCOME TAX CREDIT (EITC)

Rate (Fully-Refundable): The Wisconsin EITC is calculated as a percentage of the federal EITC.¹

• 4% of the federal EITC for workers with one qualifying child.
• 11% of the federal EITC for workers with two qualifying children.
• 34% of the federal EITC for workers with three or more qualifying children.

Eligibility Requirements: All Wisconsin taxpayers who qualify for the federal credit are automatically eligible. (See the Wisconsin state information page for details)

Latest Legislative Action:

In 2013 Wisconsin had a budget surplus, and Gov. Walker released a budget calling for income tax cuts that would primarily benefit those making $30,000 or more. Advocates recommended using the surplus to restore the EITC cuts made in 2011. However, Walker signed a budget that kept the EITC at its current level.

Notes:

• During the 2011 legislative session, lawmakers cut the funding for the EITC by $56.2 million.

CHILD TAX CREDIT (CTC)

Wisconsin does not currently offer a state-level CTC.

Latest Legislative Action: In 2018, Wisconsin enacted a one-time Child Tax Rebate worth $100 per child. Families can apply here: https://childtaxrebate.wi.gov/_/ 

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Rate (Non-Refundable): 50% of the federal credit

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

Latest Legislative Action: In 2024, Republican legislators introduced expanding the state CDCTC from 50% to 100% of the federal rate as part of a $2.1 billion tax cut package. The package currently awaits Gov. Tony Evers’s signature.

• In 2022, Gov. Tony Evers announced expanding the state CDCTC from 50% to 100% of the federal level as part of a proposed tax plan. The plan was rejected by the legislature.