New Tax Tool Promises Big Savings as Nearly 1 Million Pennsylvanians Gain a Boost

Pennsylvania Department of Revenue

HARRISBURG, PA — The Shapiro Administration has launched a new online calculator designed to help Pennsylvanians determine whether they qualify for the state’s newly created Working Pennsylvanians Tax Credit, a sweeping tax cut expected to deliver $193 million to nearly one million residents beginning next tax season.

The tool, now available through the Pennsylvania Department of Revenue, allows users to enter their income, filing status, and number of dependents to estimate how much they could receive from the credit. The maximum state benefit is $805.

“From day one, I’ve made cutting taxes and lowering costs for working families a top priority,” Governor Josh Shapiro said. He said the calculator offers families a clear preview of the support they can expect as they prepare to file their 2025 returns. “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.”

READ:  IRS Unveils New Education Tax Credit, Sparking Big Questions Ahead of 2027 Launch

Developed by the Commonwealth Office of Digital Experience in partnership with the Department of Revenue, the calculator mirrors the structure of the federal Earned Income Tax Credit. Anyone who qualifies for the federal credit will automatically qualify for the new state-level version, worth 10 percent of the federal amount.

Revenue Secretary Pat Browne called the launch “a landmark improvement for our tax system,” predicting that $193 million will reach eligible Pennsylvanians once tax season opens. Bry Pardoe, Deputy Secretary for Information Technology, said the tool reflects the Administration’s commitment to making public services easier to access, describing it as simple, clear, and user-friendly.

The Working Pennsylvanians Tax Credit is the seventh tax cut signed into law by Governor Shapiro in less than three years, part of a broader effort to ease costs for families and support businesses. Other cuts include:

READ:  IRS Unveils New Education Tax Credit, Sparking Big Questions Ahead of 2027 Launch

• Expansion of the Property Tax/Rent Rebate program, which delivered more than $319 million to 522,000 Pennsylvanians last year
• Creation of the Employer Child Care Contribution Tax Credit
• Expansion of the Child and Dependent Care Enhancement Tax Credit, now matching 100 percent of the federal credit
• A student loan interest deduction of up to $2,500
• A multi-year reduction of the Corporate Net Income Tax
• Increased Net Operating Loss deductions to support small business growth

Residents can try the new calculator at pa.gov and review a county-by-county breakdown of who will benefit when the credit takes effect next year. State officials said the goal is simple: make the tax system easier to navigate and ensure working families receive every dollar they are owed.

READ:  IRS Unveils New Education Tax Credit, Sparking Big Questions Ahead of 2027 Launch

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.