United States · Federal income tax · Credits
Earned income credit table and limits 2027.
The maximum credit, where it phases out and the investment income cap for tax year 2027.
Short answer: For tax year 2027 the maximum earned income credit is $685 with no children, $4,573 with one, $7,552 with two and $8,496 with three or more. The credit is denied if investment income is above $12,600.
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The 2027 earned income credit amounts
Rev. Proc. 2026-35 section 3.06 sets the earned income amount (where the credit stops growing), the maximum credit and the income at which the credit starts and finishes phasing out. The phase-out figures for joint filers already include the extra amount that married couples get. The return most people file in the first months of 2027 is for tax year 2026 and uses the 2026 numbers, so for that return use the earned income tax credit estimator page.
| Qualifying children | Earned income amount | Maximum credit 2027 | Maximum 2026 | Phase-out starts (single, HoH) | Phase-out starts (joint) | Credit ends (single, HoH) | Credit ends (joint) |
|---|---|---|---|---|---|---|---|
| 0 | $8,960 | $685 | $664 | $11,210 | $18,730 | $20,164 | $27,684 |
| 1 | $13,450 | $4,573 | $4,427 | $24,660 | $32,170 | $53,277 | $60,787 |
| 2 | $18,880 | $7,552 | $7,316 | $24,660 | $32,170 | $60,519 | $68,029 |
| Three or more | $18,880 | $8,496 | $8,231 | $24,660 | $32,170 | $65,002 | $72,512 |
The investment income limit is $12,600 for 2027 (it was $12,200 for 2026). The single column also applies to married people who file separately and meet the special rules for separated spouses.
How the credit is figured
The credit rate is set by statute: 7.65 percent with no children, 34 percent with one, 40 percent with two and 45 percent with three or more. Before the phase-out the credit grows at that rate up to the earned income amount. After the phase-out start it shrinks by the phase-out rate (7.65, 15.98, 21.06 and 21.06 percent) times the greater of adjusted gross income or earned income above the start. The IRS Form 1040 instructions print a table in $50 income bands, so the amount on a return can differ by a few dollars from the formula.
What changed from 2026
The maximum credit with three or more children rose from $8,231 to $8,496, and with one child from $4,427 to $4,573. The one-child phase-out start for single filers moved from $23,890 to $24,660.
Worked example (2027)
A single parent with one qualifying child has $40,000 of earned income and the same adjusted gross income. The credit starts at $4,573, and income is $15,340 above the $24,660 phase-out start, so the credit falls by 15.98 percent of that, $2,451.33. The estimate is $2,121.67. A married couple filing jointly with three children and $60,000 of income starts at $8,496 and loses 21.06 percent of the $27,830 above $32,170, which leaves $2,635.00.
Common mix-ups
- The phase-out uses the larger of AGI or earned income. If your adjusted gross income is higher than your earned income, AGI is the figure that reduces the credit.
- The investment income limit is a cliff, not a phase-out. Above $12,600 of investment income the credit is not allowed at all.
- A married couple filing jointly does not get double the single limits. The joint phase-out start is $32,170 against $24,660 single with one child, a $7,510 difference.
- These are not the numbers for your spring 2027 return. Tax year 2027 returns are filed in 2028. The estimator shows 2026 amounts beside 2027 for the same inputs.
Method
The estimator takes the smaller of the maximum credit and the credit rate times earned income, subtracts the phase-out rate times the part of the greater of AGI or earned income above the phase-out start, and floors the result at zero. It shows the credit denied if investment income is above the limit. The 2026 line uses the 2026 amounts from Rev. Proc. 2025-32 with the same formula. Eligibility rules such as age, residency, Social Security numbers and the qualifying child tests are not checked.
What this does not cover
- Whether you or your child meet the eligibility tests, including the age 25 to 64 rule for filers with no children.
- The exact IRS table amount, which uses $50 income bands.
- Other credits such as the child tax credit.
- State earned income credits.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- IRS Rev. Proc. 2026-35 (tax year 2027 inflation adjustments), section 3.06 (retrieved November 9, 2026)
- IRS news release IR-2026-133, November 5, 2026 (retrieved November 9, 2026)
- IRS Rev. Proc. 2025-32 (tax year 2026 figures used for the comparison column) (retrieved November 9, 2026)
- 26 U.S.C. 32: earned income credit (Cornell LII) (retrieved November 9, 2026)
Frequently asked questions
What is the maximum earned income credit for 2027?
$685 with no children, $4,573 with one child, $7,552 with two and $8,496 with three or more.
What is the 2027 EITC income limit?
For one child the credit ends at about $53,277 for single filers and $60,787 for joint filers. The IRS prints $53,277 and $60,787 as the completed phase-out amounts.
What is the investment income limit in 2027?
$12,600. If your investment income is higher, you cannot claim the credit.
How much did the maximum credit rise from 2026?
With three or more children it rose $265, from $8,231 to $8,496.
How is the earned income credit calculated?
It grows at a set rate up to the earned income amount, stays at the maximum, then shrinks by a phase-out rate once income passes the phase-out start. The estimator on this page applies that formula.
Is the estimate the same as the IRS table?
It can differ by a few dollars, because the IRS table works in $50 bands of income.
Where do the 2027 amounts come from?
IRS Revenue Procedure 2026-35, section 3.06. The credit and phase-out rates come from the earned income credit statute, 26 U.S.C. 32(b).
Not legal or tax advice
These are the IRS figures for tax year 2027 in an unofficial guide that no tax agency runs. A result here is an estimate from the numbers on this page, not a return. Nothing you type is transmitted anywhere. Confirm with IRS forms and instructions or a tax professional before you file.