Child care tax credit calculator
For 2026 the credit for daycare and other child care rose to as much as 50% of what you pay. Enter your income and care costs to see your credit.
- Up to $1,500 for one child, $3,000 for two or more.
- 50% at low incomes, at least 20% for everyone else who qualifies.
- Dependent care FSA limit now $7,500.
How the child care credit works in 2026
If you pay for care so you can work, you get a credit for part of the cost on Form 2441. The credit uses up to $3,000 of costs for one child under 13 or $6,000 for two or more, and gives back a percentage of it.
Starting in 2026, that percentage is 50% for incomes of $15,000 or less. It drops one point for each $2,000 of income above that until it reaches 35% (above $43,000). Above $75,000 ($150,000 joint) it drops again, one point per $2,000 ($4,000 joint), but never below 20%. In 2025 the top rate was 35% and it fell to 20% above $43,000.
Money from a dependent care FSA at work is tax-free up to $7,500 a year from 2026 ($5,000 before), but it reduces the costs the credit can use. The credit only lowers income tax you owe; it isn't paid out as a refund.
Source: Internal Revenue Code §21 and §129, as amended by Public Law 119-21 (2025); IRS 2026 Instructions for Form 2441 (draft); IRS Child and Dependent Care Credit information.
| Who it's for | Your qualifying child under 13 (for divorced or separated parents, the parent the child lives with most nights), or a spouse or dependent who can't care for themselves and lives with you over half the year. |
|---|---|
| Why you paid | So you, and your spouse if married, could work or look for work. Married couples generally must file jointly. |
| Costs that count | Daycare, preschool, before- and after-school care, day camp, a nanny or babysitter. Not overnight camp, school tuition from kindergarten up, or care by your spouse, your child's other parent, someone you claim as a dependent, or your own child under 19. |
| Limits | $3,000 of costs for one person, $6,000 for two or more, minus tax-free FSA money, and no more than the lower earner's pay. |
| Rate, 2026 | 50% at $15,000 or less; 35% from about $43,000; falls again above $75,000 ($150,000 joint), down to 20%. |
| FSA limit | $7,500 from 2026, $3,750 if married filing separately. |
Questions people ask
How much is the child care tax credit for 2026?
Up to 50% of what you pay for care, on up to $3,000 of costs for one child or $6,000 for two or more. That's up to $1,500 or $3,000. The rate drops as income rises: 35% from about $43,000, and down to 20% above $103,000 ($206,000 joint).
What changed for 2026?
The top rate rose from 35% to 50%, and families keep higher rates further up the income scale: 35% up to $75,000 of income ($150,000 joint), reaching the 20% minimum only above $103,000 ($206,000 joint). In 2025 the rate fell to 20% above $43,000. The tax-free limit for an employer dependent care FSA rose from $5,000 to $7,500 ($3,750 if married filing separately).
Who counts as a qualifying child?
Your qualifying child under 13 when the care was given (if parents are divorced or live apart, only the parent the child lives with most nights), or a spouse or dependent of any age who can't care for themselves and lives with you more than half the year. You must pay for the care so you (and your spouse) can work or look for work.
Can I use both a dependent care FSA and the credit?
Yes, but not for the same dollars. Money from the FSA is subtracted from the $3,000 or $6,000 of costs the credit can use. If you take $7,500 from an FSA, there's nothing left for the credit.
Is the child care credit refundable?
No. It can lower your federal income tax to zero, but you don't get the rest back as a refund. People with little or no income tax may get little or no benefit.