EARNED INCOME TAX CREDIT (EITC)

Rate (Refundable)²: 10% of the federal EITC, maximum amount $805.

Latest Legislative Action: 

• On November 12, 2025 Governor Shapiro established Pennsylvania’s first EITC, the Working Pennsylvanians Tax Credit in the 2025-2026 budget.
• A bill was introduced to establish a state EITC during the 2025 session.

CHILD TAX CREDIT (CTC)

Pennsylvania does not currently offer a state-level CTC.

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Rate (Refundable)¹: 100 percent of the Federal CDCTC

Eligibility Requirements: Taxpayers must receive the federal CDCTC credit to be eligible for the state credit in Pennsylvania. 

In order to claim the credit, a person must have incurred care expenses for:

• A dependent child under age 13.
• A spouse who was physically or mentally incapable of self-care and lived with the taxpayer for more than half the year.
• An individual who was physically or mentally incapable of self-care, lived with the taxpayer for more than half the year, and either:
  • Was the taxpayer’s dependent; or
  • Could have been the taxpayer’s dependent, except that he or she received gross income of $4,400 or more, filed a joint return, or could have been claimed as a dependent on another taxpayer’s return.