State leaders highlighted the projected benefits of the new Working Pennsylvanians Tax Credit on Monday.
Created in the 2025-2026 budget signed last week, the state-level tax credit mimics the federal Earned Income Tax Credit, equaling 10% of the federal credit.
Anyone who qualifies for the federal EITC will automatically get both credits. Pennsylvanians qualify for the state credit based on income and number of dependents, with the maximum credit being $805.
Officials project that the Working Pennsylvanians Tax Credit will bring $193 million in tax relief for 940,000 residents in the state.
“From day one, I’ve made cutting taxes and lowering costs for working families a top priority,” Gov. Josh Shapiro said. “Pennsylvanians are feeling the impact of rising costs, and while federal policies have only made that harder, my administration is focused on cutting taxes and helping working families get ahead.”
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