Governor announces new state tax credit for working Pennsylvanians

“The 2025-26 budget signed by Shapiro established the new credit equal to 10 percent of the federal Earned Income Tax Credit (EITC), ensuring that anyone who qualifies for the federal EITC will now automatically receive both credits when they file their taxes next year.

  • Nearly one million Pennsylvanians will benefit from the new tax credit.
  • The new credit can be worth as much as $805.
  • The Working Pennsylvanians Tax Credit is worth 10% of the Earned Income Tax Credit.
  • Pennsylvanians who are eligible for the federal program will automatically qualify for the state tax credit.

Gov. Josh Shapiro announces new state tax credit for working Pennsylvanians