PA Expands Child Care Tax Credit

An expansion of Pennsylvania’s child care tax credit will increase the amount families with children in child care can receive. The expansion allows individuals to claim 100% of the federal child care tax credit they claimed.

Learn More

The Child and Dependent Care Enhancement Tax Credit that is available to Pennsylvanians at the state level is based on the federal Child and Dependent Care Tax Credit. Taxpayers must receive the federal credit to also be eligible for the state credit in Pennsylvania. The major expansion signed into law by PA Governor Josh Shapiro means:

• The maximum credit will be $1,050 (one child) or $2,100 (two or more children).

• The credit cap phases down as income levels increase.

Prior to the expansion, the maximum credit Pennsylvania families could receive was up to $315 (one child) or $630 (two or more children). Under the new law, Pennsylvanians could see up to a 233% increase in their tax credit from last year.

For more information about the Childcare and Dependent Care Tax Credit, visit pa.gov/childcaretaxcredit.