Pennsylvania residents are poised for a significant round of tax relief next year, as nearly one million workers become eligible for a new state tax credit created under the 2025–26 budget signed by Governor Josh Shapiro in November 2025.
Why It Matters
State officials estimate the initiative will deliver about $193 million in tax relief, benefiting roughly 940,000 working Pennsylvanians across all 67 counties. The maximum credit is expected to reach about $805, though the exact amount will vary based on income level and household size.
What to Know
The Working Pennsylvanians Tax Credit (WPTC)—modeled after the federal Earned Income Tax Credit (EITC)—was approved as part of the state’s $50.1 billion budget in November.
Eligible residents who qualify for the federal EITC will automatically receive a state credit equal to 10 percent of their federal benefit.
According to estimates from the governor’s office:
- A single working parent with three children earning $23,300 would receive the maximum $805.
- The same family earning $45,000 would receive $349.
- A single parent with two children earning $50,000 would receive $154.
For married couples:
- A couple with two children earning $30,470 could receive $715.
- A couple with three children earning $60,000 could receive $183.
What People Are Saying
Governor Josh Shapiro said in a November press release that cutting taxes and lowering costs for working families has been a priority since the start of his administration.
“Pennsylvanians are feeling the pressure of rising costs,” he said, adding that the new credit will return up to $805 to eligible households, helping families better support themselves and plan for the future.
Pennsylvania Department of Revenue Secretary Pat Browne highlighted broader long-term benefits, noting that research consistently shows families receiving the Earned Income Tax Credit experience improved outcomes in education, employment, and health. He emphasized that the credit benefits workers across racial and ethnic groups and will have a meaningful impact on nearly one million residents statewide.
What Happens Next
The Working Pennsylvanians Tax Credit is scheduled to take effect with the 2026 tax season, according to NBC10 Philadelphia.
