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Pennsylvania’s New Tax Credit to Aid Nearly 1 Million Workers

12/31/2025

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Summary

Story summary

The 2025-26 Pennsylvania budget signed by Governor Josh Shapiro (D-Pa.) creates a state tax credit starting in 2026.
Nearly 1 million workers will be eligible, with credits capped at $805 and varying by income and household size.
For example, a single parent with three children earning $23,300 will receive the maximum benefit, while a $60,000 couple gets $183.
Shapiro emphasized that the measure will reduce costs for families.

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Story summary

The 2025-26 Pennsylvania budget signed by Governor Josh Shapiro (D-Pa.) creates a state tax credit starting in 2026.
Nearly 1 million workers will be eligible, with credits capped at $805 and varying by income and household size.
For example, a single parent with three children earning $23,300 will receive the maximum benefit, while a $60,000 couple gets $183.
Shapiro emphasized that the measure will reduce costs for families.