HARRISBURG – The Shapiro Administration highlighted how the new Working Pennsylvanians Tax Credit created in the 2025-26 budget signed last week will deliver $193 million in tax relief to 940,000 working Pennsylvanians beginning next tax season. Modeled after the federal Earned Income Tax Credit or EITC, the new state-level credit equals 10% of the federal credit. Anyone who qualifies for the federal EITC will now automatically receive both credits, helping reduce taxes owed, and put more money back in Pennsylvanians’ pockets. Pennsylvanians qualify for the tax credit based on income and number of dependents. The maximum state credit is $805. Filing will be simple and automatic. When Pennsylvanians file their federal and state taxes, the PA Department of Revenue will automatically calculate the state credit.
