Working Pennsylvanians Tax Credit
Last updated August 2026
Pennsylvania finally has its own earned income credit, and it is already paying. The Working Pennsylvanians Tax Credit came in the November 2025 budget. It paid nearly $217 million in its first season. It pays 10 percent of your federal EITC, up to $805. And it is refundable: money back even if you owe no PA tax.
Claiming it takes no separate application. File your federal 1040 and claim the federal EITC, then file your PA-40; tax software asks for your federal EITC amount and does the math. That is the whole process.
Eligibility rides the federal credit: PA earned income plus federal EITC qualification. If you qualify federally, you qualify here.
Not sure what you would get? The Department of Revenue runs an online calculator; enter filing status, dependents, and income for an estimate. And because the state credit stacks on top of the federal one, which is worth thousands for families with kids, a working family's total refund can be substantial.
One caution against old information: articles calling this credit merely proposed are out of date. It was signed November 12, 2025, and has already paid out. If you skipped filing because money was tight, this is another reason to file, and free help exists: VITA sites prepare returns free for most working families.
Updated August 2026 Program details can change — confirm with the program directly.
Who qualifies
- You must have earned income in Pennsylvania and qualify for the federal Earned Income Tax Credit
- File both a federal return and a Pennsylvania PA-40 return; the credit is refundable
You may qualify. The program makes the final decision.
How to apply
- 1
File your federal 1040 and claim the federal EITC.
- 2
File your PA-40 state return; the software prompts for your federal EITC amount and applies the 10 percent credit.
- 3
Estimate first if you like, with the Department of Revenue's online WPTC calculator.
- 4
Owe no PA tax? File anyway; the credit is refundable and comes back as money.
- 5
Want free help? VITA sites prepare both returns free for most working families.
What the application looks like
Common questions
What is the Working Pennsylvanians Tax Credit?
Pennsylvania's new state earned income credit: 10 percent of your federal EITC, up to $805, refundable. Created November 2025, first paid in the 2026 filing season.
How do I claim the WPTC?
No separate form: claim the federal EITC on your 1040, then file your PA-40. Tax software carries the federal amount over automatically.
Who qualifies?
Anyone with Pennsylvania earned income who qualifies for the federal EITC and files both returns.
Is it real money if I owe no tax?
Yes. The credit is refundable, so it pays out even with zero PA tax owed. Nearly $217 million reached Pennsylvanians in its first season.
How much could I get in total?
Up to $805 from the state, stacked on top of your federal EITC, which runs to several thousand dollars for families with children. The Revenue department's calculator estimates your numbers.
Not sure this is the right program for your situation?
See all Pennsylvania programs →Free · Private · No account needed