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 February 2025, Assembly Bill 20 (AB 20) and its companion Senate Bill 20 (SB 20) were introduced to amend the EITC eligibility criteria. These bills propose allowing certain married individuals who live apart from their spouses to claim the EITC while filing separate returns.²

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): 100% of the federal credit

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

Latest Legislative Action:  

Update: Assembly Bill 1023 (or the 2023 Wisconsin Act 101) was signed into law on March 4, 2024 expanding state CDCTC from 50% to 100% of the federal rate as part of a $2.1 billion tax cut package. The cap on allowable childcare expenses was raised to $10,000 for one dependent and $20,000 for two or more dependents.

This change allows qualifying taxpayers to receive a credit ranging from $2,000 to $3,500 for one dependent and $4,000 to $7,000 for two or more dependents, depending on their federal adjusted gross income.

• 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.