Scattering of light dark matter (LDM) particles with atomic electrons is studied in the context of effective field theory. Contact and long-range interactions between dark matter and an electron are both considered. A state-of-the-art many-body method is used to evaluate the spin-independent atomic ionization cross sections of LDM-electron scattering, with an estimated error about 20%. New upper limits are derived on parameter space spanned by LDM mass and effective coupling strengths using data from the CDMSlite, XENON10, XENON100, and XENON1T experiments. Comparison with existing calculations shows the importance of atomic structure. Two aspects particularly important are relativistic effect for inner-shell ionization and final-state free electron wave function which sensitively depends on the underlying atomic approaches.