The MSP will make the pledge in her keynote address to the Scottish Labour conference in Perth.
Ms Dugdale believes new taxes would not be necessary to pay for the plan.
She will advocate changes of approach such as ditching SNP plans to cut air passenger duty and Tory proposals to raise higher rate tax thresholds.
Ms Dugdale will say that parties in Scotland must "get serious" about what they would do with the major new tax and welfare powers coming to the Scottish Parliament.
The MSP reckons the restoration of tax credits could be achieved by making different choices in government.
At the Holyrood election in May next year, the Scottish Labour Party will be defending the 38 seats it holds.
Ms Dugdale will tell her conference that a vote for her party would offer a break from Tory austerity.
She will add: "Scottish Labour will stand for the elections with a promise to restore the money Scottish families will lose from this Tory tax rise on working families.
"We will act as soon as the new powers make it possible. We don't need to tax ordinary Scots more to make this change.
"We just need to make different choices from the Tories and the SNP."
The Scotland Bill, currently going through the UK parliament, will contain new powers for Holyrood, including;
On the first day of the three-day conference Labour's UK leader Jeremy Corbyn urged voters in Scotland to back a "left wing alternative" at next May's Holyrood election.
Mr Corbyn also said it was right that decisions about the party north of the border should be taken by members and activists in Scotland.
He has signed an agreement with Ms Dugdale pledging a more autonomous structure.
Who would join Scottish Labour - a party with just one MP north of the border and a poor showing in the polls?
Five young people - attending the Scottish Labour conference in Perth - tell BBC Scotland political reporter Philip Sim (@BBCPhilipSim) what's making them stick and not quit.

Interest and participation has increased hugely in recent years across the country, according to the Outdoor Swimming Society.
Eighty outdoor swims are being held over the 2015 season, with most taking place on Christmas or Boxing Day.
Safety advice has been issued by the society for the first time.
Spokesman Will Cairns said it was expecting more people to take part this year in the sea, rivers and lidos.
"What's interesting this year is the temperature of the water.
"It's three to four degrees higher in certain places than it was this time last year. Temperature does play a part."
He said overall membership numbers increased from 15,000 last year to 25,000 this year and that 40% of members now actively swim throughout the winter.
"The Christmas swims very much appeal to the British psyche of doing something different, something slightly weird and wonderful," he said.
- Do not take part if you are pregnant, suffer from asthma or have a heart condition.
- Get warm before the swim and remove your warm clothing at the last minute.
- Go in feet first, not head first, and control your breathing before immersing your shoulders.
- Have low expectations of how long you will be in for or how far you will go
- Dry off and put on layers within ten minutes of getting out
Charlie Hoskin, 33, from Cornwall, described herself as a "granite-fleshed cold-water bathing enthusiast" who always swims in the sea at Christmas.
"The sensation is truly electrifying. It is a great way to test your constitution and boost your immune system," she said.
Daniel Fox has been photographing the Exmouth Christmas Day swim since 2007.
"Its getting massively busy now and the atmosphere is amazing. Costumes are getting wilder and there are more and more people taking part," he said.
"There are about 1,000 swimmers, thousands of spectators and tens of thousands watch by webcam too so we have a worldwide audience".
Brian Thomas from the Serpentine Swimming Club in London said: "We have seen a huge growth in numbers over the past five years".
He said its Christmas swimming race tradition began in 1864 and about 100 people usually take part after a strict vetting process.
"Swimming in a wetsuit is cheating" he said, although stressed that the club has "strict guidelines" making sure participants have acclimatised.
A future Labour government at Holyrood would restore tax credits for working families, its Scottish leader Kezia Dugdale will tell party members.
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Christmas swims are expected to attract bumper numbers this year due to milder winter weather and growing popularity for the craze.