Pennsylvania’s new Working Pennsylvanians Tax Credit delivered nearly $217 million to more than 876,000 residents during the 2025 tax filing season, according to the Pennsylvania Department of Revenue.

State officials estimate the total will increase to approximately $220 million, benefiting as many as 940,000 taxpayers, as the remaining 2025 returns (including those filed under extensions) are processed.

The refundable tax credit was created as part of the bipartisan 2025-26 state budget. Modeled after the federal Earned Income Tax Credit, the state credit is equal to 10 percent of a taxpayer’s federal EITC and is intended to provide targeted tax relief for lower-income working households. Eligible taxpayers can receive up to $805 through the program.

To encourage participation during the credit’s first year, the Department of Revenue automatically calculated the credit for taxpayers who filed their federal and state returns electronically at the same time and conducted outreach to eligible filers. The Department also mailed notices explaining the additional refunds received through the program.

The tax credit emerged from bipartisan negotiations in the General Assembly as part of the broader state budget package last year. Supporters said the measure would provide financial relief to working families while encouraging labor force participation and strengthening household finances. During legislative consideration, proponents also cited research suggesting earned income tax credits can increase workforce participation, reduce reliance on public assistance, and generate broader economic activity.

The Department of Revenue has launched an online eligibility calculator to help taxpayers determine whether they qualify for the credit. Officials expect participation to continue growing as awareness of the program increases and additional eligible taxpayers claim the credit in future tax years.

For more information on the Working Pennsylvanians Tax Credit, click here.