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    Department of Revenue

    Working Pennsylvanians Tax Credit

    Working Pennsylvanians may be eligible to receive up to $805 through a new state tax credit created in the 2025-26 budget, which was signed by Governor Josh Shapiro on November 12, 2025.

    Beginning with the 2026 tax season, the credit will provide $193 million in relief to 940,000 working Pennsylvanians.

    Overview

    The Working Pennsylvanians Tax Credit (WPTC) is a new state-level tax credit modeled after the federal Earned Income Tax Credit (EITC). The state credit equals 10 percent of your federal credit.

    If you qualify for the federal EITC, you will automatically qualify for the state credit — helping to lower your taxes or increase your refund. The maximum state credit is $805.

    Tax Credit Calculator

    Your credit amount is based on your tax-filing status, income, and number of dependents — following the same structure as the federal EITC.

    Use the WPTC calculator below to estimate your credit.

    Note: This estimate is for informational purposes only, and the credit shown on this calculator cannot be used when you file your tax return. This amount is not guaranteed — other factors may affect your eligibility and how much you may receive from the credit. Your final credit amount will be determined when you file your tax return.

    Eligibility

    You may qualify if you:

    • Are a working Pennsylvania resident
    • Have earned income (wages, salary, and/or self-employment income)
    • Qualify for the federal EITC
    • File both your federal Form 1040 and PA-40 state tax return

    If you receive the federal EITC, you automatically qualify for the WPTC.

    How to Claim the Working Pennsylvanians Tax Credit

    File Online

    1. File your federal Form 1040 and claim the EITC.
    2. File your PA-40. Your tax software may prompt you to enter your federal EITC amount.
    3. The Department of Revenue will automatically calculate your WPTC and apply it to reduce your PA taxes or increase your refund.

    Use myPATH

    You can file your PA-40 for free on myPATH, the Department of Revenue’s online filing system for state taxes.

    If you filed your federal return elsewhere, you’ll be prompted to enter your federal EITC amount and upload a copy of your Form 1040.

    Paper Filers

    If you file by mail, include a copy of your federal Form 1040 with your PA-40 so the Department of Revenue can verify your eligibility. 

    Tips

    • The easiest way to claim the credit is to file your federal and state tax returns online at the same time.
    • The Department of Revenue must receive a copy of your federal Form 1040 to calculate your credit automatically.
    • This is a refundable tax credit, meaning you can receive it even if you don’t owe Pennsylvania income tax.

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