Summary
Pennsylvania will send out nearly 1 million tax credit payments in January 2026. This is part of a state program called the Working Pennsylvanians Tax Credit, which was included in the 2025-26 budget to support low- to moderate-income workers. The tax credit amount varies based on income and family size.
Key Facts
- Pennsylvania's new tax credit program is called the Working Pennsylvanians Tax Credit (WPTC).
- The program is part of the 2025-26 state budget signed by Governor Josh Shapiro.
- About 940,000 Pennsylvania workers will benefit from the program, with relief totaling around $193 million.
- The maximum tax credit is approximately $805, but actual amounts depend on income and household size.
- The program adds 10% of the federal Earned Income Tax Credit (EITC) to the state tax credit for eligible Pennsylvanians.
- The tax credit is set to start with the 2026 tax season.
- A family example: A single parent with three children earning $23,300 would receive the full $805, while the same family earning $45,000 would receive $349.
- Governor Shapiro and the Pennsylvania Department of Revenue emphasize the tax credit's potential benefits for education and health outcomes for families.
