ICYMI: Working Pennsylvanians to Benefit from New State-Level Earned Income Tax Credit

The new state-level Earned Income Tax Credit — known as the Working Pennsylvanians Tax Credit (WPTC) — was created in the 2025–26 budget Governor Shapiro signed last month and cuts taxes for residents.

 

The WPTC will deliver $193 million to nearly 1 million Pennsylvanians when they file their 2025 tax returns — it is the seventh tax cut signed into law by Governor Shapiro in less than three years.

Harrisburg, PA — In case you missed it, the Shapiro Administration rolled out a new online calculator and launched statewide outreach to help Pennsylvanians access the Working Pennsylvanians Tax Credit (WPTC) — a historic tax cut created in the 2025-26 budget that will deliver $193 million in tax relief to 940,000 working Pennsylvanians beginning next tax season.

The WPTC — modeled after the federal Earned Income Tax Credit (EITC) — equals 10 percent of the federal credit. Anyone who qualifies for the EITC will now automatically qualify for the state credit, reducing their taxes owed and putting more money back in their pockets.

Since signing the budget, Governor Shapiro has traveled across the Commonwealth to highlight how the WPTC will support working families — including visits to the Widener University Commonwealth Law School tax clinic in Dauphin County and the Fayette County Community Action Agency (FCCAA).

The WPTC is the seventh tax cut Governor Shapiro has signed into law in just three years, underscoring his continued commitment to cutting taxes and lowering costs for Pennsylvania families.

Eligibility and New Online Calculator Tool for Pennsylvanians 

To help families plan for next tax season, the Shapiro Administration launched a new online WPTC calculator, developed in partnership with the Commonwealth Office of Digital Experience (CODE PA) and the Pennsylvania Department of Revenue. The user-friendly tool allows Pennsylvanians to enter their tax-filing status, income, and number of dependents to estimate how much they may receive under the WPTC. The maximum state credit is $805.

Pennsylvanians can now visit pa.gov/wptc, a new centralized webpage that provides clear, accessible information including eligibility guidelines, step-by-step instructions, FAQs, and resources to help residents understand how the credit works.

The new calculator works hand-in-hand with the Shapiro Administration’s county-by-county fact sheet, which provides both statewide and local context for how the WPTC will affect communities across Pennsylvania. The fact sheet details how many residents in each county are expected to qualify and the total amount of tax relief projected to flow into each region.

Read what legislative and community leaders are saying about the Working Pennsylvanians Tax Credit:

Heidi Neuhaus, Director of the Volunteer Center, United Way of the Capital Region: “I’ve seen firsthand how meaningful the federal Earned Income Tax Credit is for the clients we serve. I’m honored to stand with Governor Shapiro as we highlight a brand-new, state-level tax credit that was just signed into law. This credit will help nearly a million Pennsylvanians and put more money back into the pockets of the working individuals and families we support every day. Our volunteers were proud to testify before the House Finance Committee in favor of creating a state-level credit, and we are eager to see the positive impact it will have in communities across the Commonwealth. We are grateful to Governor Shapiro and his Administration for making this a priority.”

Karen Showalter, Senior Director, MomsRising: “We know this tax credit will make a real difference because we hear it from our members every day, in every corner of the state. So many of them tell us that even though they’re working hard and caring for their families, they still can’t get ahead. More and more are juggling paid work while also caring for young children or aging parents — often both — and struggling to keep everything afloat. Programs like this provide meaningful relief. One of our members in Pittsburgh, a single mom, told us, ‘An extra $700 isn’t just a number on paper — it’s groceries that stretch a little further, gas in the tank without holding my breath at the pump, and the kind of breathing room that keeps the lights on and the stress down.’”

House Speaker Joanna McClinton: "As the Trump Administration drives up prices for the average family, we're responding with policies to help Pennsylvania's working families save more of their hard-earned income. I am proud to have steered the Working Pennsylvanian Tax Credit through the House twice this year, because it is good for everyone — saving people money while boosting local economies and helping small businesses."

Senator Patty Kim: “I am so honored to have voted for this tax credit — it is truly essential. As many of you know, we recently went through a SNAP snafu and saw far too many working families struggling. In the midst of that darkness and uncertainty, Governor Shapiro fought hard to protect them, and we’re grateful for that leadership. Now it’s our turn as a state to step up, do our part, and give something back to the people who are working to feed their families.”

Representative Christina Sappey: “All across Pennsylvania, working families are doing everything they can to make ends meet. Many are dual-income households earning modest wages, juggling rent or mortgage payments, child care, health care and everyday essentials. When those basic costs outpace paychecks, families struggle — and our entire economy feels the impact. This new tax credit will support working families and benefit our economy.”

Representative Justin Fleming: “The Working Pennsylvanians Tax Credit is a real win for Pennsylvanians — it puts more money back in the pockets of working families who need it at a time when costs keep rising. Most Pennsylvanians living in poverty are children, and one of the best ways to secure their future is by making smart, targeted investments like this tax cut that support families and strengthen local economies.”

Kim Hawk, CEO, FCCAA: “Every day, our team works across aging services, housing, employment and training, nutrition, and community development to strengthen families and empower this county. Through our VITA and TCE programs — run in collaboration with the United Way — we’ve seen up close how meaningful targeted tax cuts can be. That’s why we’re so grateful for the new Working Pennsylvanians Tax Credit. This credit delivers real support to hardworking families here in Fayette County and across the Commonwealth. Governor Shapiro, thank you for your leadership and for your commitment to programs that directly improve the lives of the people we serve.”

Rose Comport, Nutrition Assistant, FCCAA: “As a working parent, I know what it’s like to sit at the kitchen table and try to make the numbers add up. Families are doing everything they can to stretch every dollar — and with the price of groceries, gas, doctor visits, and unexpected expenses, it’s harder than ever. That’s why this new tax credit matters so much — it will give working parents a little breathing room, help families stay on their feet, and allow them to focus on raising their kids and building a better future.”

Scott Dunn, Chairman, Fayette County Commissioners: “These cuts mean additional funds in the pockets of Fayette Countyians, which will be spent locally, and help churn our Fayette County economy. These key investments help feed our children and our seniors and support child care. So, as we work in Fayette County to build a new future through business attraction and expansion, through a renewed emphasis on higher education, and a focus on our housing needs, the Governor's Earned Income Tax Credit can offer a buffer to us, until we get to where we, as a county, want to be.”

Senator Patrick Stefano: “
We don't agree with every line item, but there's some things we do agree on, so let's focus on the good things and what we do agree on. Giving that hand out and hand up to those that are already working, that are part of the workforce and just need a little bit of help to get up over the edge — that's what we're here for.”

Here’s what Pennsylvanians are watching and reading about the new Working Pennsylvanians Tax Credit:

Philadelphia Inquirer: A new Pa. tax credit could put up to $805 in your pocket. Here’s what to know.

Spotlight PA: How the tax credits in the PA budget work and who qualifies — explains the rules & who’s eligible for the credit.

Times Leader: LEGISLATIVE ROUNDUP: Working Pennsylvanians Tax Credit will deliver $193M in tax relief for 940,000, officials say

MyChesco: New tax tool promises big savings as nearly 1 million Pennsylvanians gain a boost — coverage of the new calculator and projected statewide benefit.

PennWatch: Pennsylvania Launches Online Calculator to Help Estimate New Tax Credit — another summary of the new credit and how residents can check eligibility.

FOX 43: How much could you save with the new 'Working Pennsylvanians' tax credit? — overview of what the credit means for working Pennsylvanians and what to expect once tax season arrives.

90.5 WESA: Pennsylvania budget includes new earned income tax credit

City & State PA: 5 things to know about Pennsylvania’s 2025–26 state budget — mention of the new tax credit among other major budget provisions.

CCE Online News: Pennsylvania Working Pennsylvanians Tax Credit 2025: Complete Guide & Calculator

Newsweek: Income Tax Credit Announced For 940,000 Americans

The Tribune-Democrat: New $193M tax credit a 'hand up' for working Pennsylvanians

WTAE: Shapiro unveils Working Pennsylvanians Tax Credit

Herald-Standard: Shapiro touts tax credit for workers

The River 98.9: Governor Shapiro Highlights New Working Pennsylvanians Tax Credit that Will Cut Costs

The Daily Courier: Shapiro Highlights New Working Pennsylvanians Tax Credit

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