Childcare Cost & Tax Credit Calculator
🇺🇸 US-specific: 2026 Child and Dependent Care Tax Credit (up to 50%) and $7,500 Dependent Care FSA limit. US 2026 national average: $1,230/month for infant center-based care.
The CDCTC ranges from 50% of qualifying expenses (AGI ≤$15,000 single / $30,000 married) down to a 20% floor (AGI over ~$103,000 single / $206,000 married), capped at $3,000 of expenses for one child or $6,000 for two or more — raised from a 20-35% range under prior law. The real IRS table steps in $2,000 increments rather than smoothly, so the rate shown here is a close approximation. You generally can't claim the FSA and the credit on the exact same dollars of expense, though you can combine them if total costs exceed the FSA limit. This is an estimate, not tax advice — confirm your numbers with Form 2441 or a tax professional.
Free childcare cost calculator with the 2026 Child and Dependent Care Tax Credit (now up to 50%, raised from 35%) and the new $7,500 Dependent Care FSA limit — see which one saves more for your income and expenses, since you generally can't claim both on the same dollars.
How it works
- Enter your monthly childcare cost, number of qualifying children, household AGI, and filing status
- Optionally enter a Dependent Care FSA election and your marginal tax rate to compare it against the tax credit
- See your Child and Dependent Care Tax Credit amount, your FSA tax savings estimate, and which option (or combination) comes out ahead
Frequently asked questions
How much is the Child and Dependent Care Tax Credit in 2026?
It ranges from 50% of qualifying expenses (for the lowest incomes) down to a 20% floor (for higher incomes) — raised from a 20-35% range under prior law by the One Big Beautiful Bill Act. Qualifying expenses are capped at $3,000 for one child or $6,000 for two or more. The real IRS table steps down in $2,000 income increments rather than smoothly, so this calculator's rate is a close approximation, not the exact Form 2441 figure.
Should I use a Dependent Care FSA or the tax credit?
It depends on your income, tax bracket, and total expenses — generally, a Dependent Care FSA (now up to $7,500/year for 2026, raised from $5,000) tends to save more for higher earners in higher tax brackets, while the CDCTC's higher rates now make it more competitive for lower and middle incomes. You generally can't claim both on the exact same dollars of expense, though you can combine them if your total costs exceed the FSA limit.
Why isn't there a state-by-state cost lookup?
Childcare costs vary enormously even within the same state (often 25-40% higher in urban areas than rural ones), so a single state-average figure can be misleading for an individual family. This calculator uses your actual monthly cost instead, alongside the national 2026 average ($1,230/month for infant center-based care) for reference.
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Update history
- 2026-09-08 Launched: childcare cost calculator combining the 2026 Child and Dependent Care Tax Credit (up to 50%) and the new $7,500 Dependent Care FSA limit, showing which benefit comes out ahead for a given income and expense level.