Pennsylvania Gov. Josh Shapiro has officially announced a major tax relief plan aimed at supporting low- and moderate-income workers across the state.
During a Monday afternoon press event, Shapiro highlighted the launch of the Working Pennsylvanians Tax Credit, a new initiative designed to deliver significant financial relief to residents who already qualify for the federal Earned Income Tax Credit (EITC).
This step marks one of the most substantial state-level boosts to working families in recent years.
Overview of the Working Pennsylvanians Tax Credit
A Key Part of the 2025-26 State Budget
The tax credit was created through the 2025-26 state budget signed by Gov. Shapiro. Under this legislation, Pennsylvanians who receive the federal EITC will now automatically receive an additional benefit from the state—equal to 10% of the federal Earned Income Tax Credit.
Automatic Eligibility
One of the most important features of the program is that eligible residents do not need to submit a separate application. Anyone who qualifies for the federal EITC will automatically receive the state credit when they file their taxes next year.
How Much Financial Relief Will Residents Receive?
Nearly One Million Residents Will Benefit
State officials estimate that about one million working Pennsylvanians will receive support through this new credit, making it one of the largest state programs tied to the federal EITC.
Maximum Credit Amount
For households that qualify at the highest level, the Working Pennsylvanians Tax Credit may provide up to $805 in additional tax relief. Overall, the program represents $193 million in direct financial assistance statewide.
Key Details at a Glance
Here is a simplified summary of the main benefits offered under the new tax credit:
- Almost one million workers will qualify.
- Maximum credit amount can reach $805.
- Credit equals 10% of the Federal Earned Income Tax Credit.
- Anyone eligible for the federal EITC will automatically receive the new Pennsylvania credit.
Officials Present at the Announcement
During the announcement, Gov. Shapiro was joined by several state leaders and community advocates who supported the new policy. Those in attendance included:
- Lt. Gov. Austin Davis
- Revenue Secretary Pat Browne
- Karen Showalter, Senior Director at MomsRising
- House Speaker Joanna McClinton
- State Sen. Patty Kim
- Rep. Christina Sappey
- Rep. Justin Fleming
- Heidi Neuhaus, Director of the Volunteer Center at United Way of the Capital Region
Their presence underscored broad support for helping working families keep more of what they earn.
The new Working Pennsylvanians Tax Credit represents a major investment in the financial stability of hardworking families across the state.
By tying the benefit directly to the federal EITC and offering automatic eligibility, Pennsylvania is ensuring that nearly one million residents receive meaningful tax relief without additional paperwork or barriers.
With up to $805 available per household, the program promises to deliver real and measurable support to working communities throughout Pennsylvania.
