Governor Shapiro highlights new state tax credit aimed at supporting working Pennsylvanians

Governor Josh Shapiro, Lieutenant Governor Austin Davis, and Pennsylvania Department of Revenue Secretary Pat Browne visited the Widener University Commonwealth Law School tax preparation clinic in Dauphin County to discuss the new Working Pennsylvanians Tax Credit (WPTC). This credit was established as part of the 2025-26 state budget signed by Governor Shapiro last week.

The WPTC is designed to provide $193 million in tax relief to approximately 940,000 working residents across Pennsylvania starting with the next tax season. The credit is modeled after the federal Earned Income Tax Credit (EITC) and will equal 10 percent of that federal benefit. Those who qualify for the federal EITC will automatically receive both credits, reducing their overall tax burden.

Governor Shapiro stated, "From day one, I've made cutting taxes and lowering costs for working families a top priority. 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. This new Working Pennsylvanians Tax Credit will put up to $805 back in the pockets of hardworking Pennsylvanians, giving them more resources to support their families."

This initiative marks the seventh tax cut enacted under Governor Shapiro's administration within three years. Other speakers at the event included Heidi Neuhaus from United Way of the Capital Region; Karen Showalter from MomsRising; House Speaker Joanna McClinton; Senator Patty Kim; Representative Christina Sappey; and Representative Justin Fleming.