Harrisburg, Pennsylvania – June 18, 2026 − To put more money back into the pockets of working families, Pennsylvania State Senators Maria Collett (D-12), Lindsey Williams (D-38), Christine Tartaglione (D-2), and Katie Muth (D-44) introduced legislation to increase the Pennsylvania Child and Dependent Tax Credit by matching the state credit with changes in the federal credit amount.
Beginning in tax year 2026, the federal Child and Dependent Care Tax Credit will increase to 50% (from 35%) of child and dependent care expenses incurred. The maximum credit will be $1,500 (for one child/dependent), an increase of $450, or $3,000 (for two or more children/dependents), an increase of $900.
Under current state law, Pennsylvania does not automatically adjust to changes made to the federal program. This legislation will ensure that the state credit families receive will match the enhanced federal credit.
“Too many families are struggling to make ends meet as the costs of everything from groceries to child care continue to rise,” Collett said. “Our legislation will provide real relief to real Pennsylvanians by providing parents and caregivers with hundreds of dollars in additional tax breaks every year.”
In 2025, the Child and Dependent Care Tax Credit provided $139 million in tax relief to nearly 222,000 Pennsylvanians.
“Aligning state child care tax credits with the federal program means working families will get more money back in their pockets while making taxes a little easier,” Williams said. “Our working families, especially our working moms, already have a full to-do list. I’m glad we can make this discount a little easier and accessible for those who need it most.”
“Families across Pennsylvania will be working, raising children and caring for loved ones, and the cost of care continues to rise faster than their wages,” Tartaglione said. “Aligning the Pennsylvania Child and Dependent Tax Credit with the expanded federal credit is a common-sense way to put more money in the pockets of working families and make child and dependent care more affordable. At a time when so many Pennsylvanians are struggling to keep up with rising costs, we should be doing everything we can to support them.”
“As inflation and the cost of living continue to outpace the earnings of so many families across the Commonwealth, it is imperative that we improve state programs and benefits, such as improving child and dependent care,” Muth said. “As budget negotiations continue in Harrisburg, the General Assembly must prioritize initiatives to put money back into the pockets of Pennsylvania families.”
Learn more about the Senate Democratic Caucus’s legislation to lower costs and increase economic opportunities for Pennsylvania families.
