Child & Dependent Care Credit Calculator
Calculate your Child and Dependent Care Tax Credit for 2026. The One Big Beautiful Bill Act raised the top rate from 35% to 50% and added a new $75,000/$150,000 phase-down tier for 2026+.
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Additional Details
2026 Credit Amount (New OBBBA Law)
$810.00
Estimated • Based on your inputs
Additional Credit From the 2026 OBBBA Change
$210.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
The Child and Dependent Care Credit (IRC Sec. 21) is a nonrefundable federal tax credit for work-related expenses paid to care for a qualifying child under 13 or another qualifying dependent. For tax years through 2025, the credit equaled an "applicable percentage" of eligible expenses — 35% at low income, phasing down (never below 20%) by 1 point per $2,000 of AGI above $15,000, reaching the 20% floor for nearly all filers above $43,000 AGI. The One Big Beautiful Bill Act (Pub. L. 119-21, Sec. 70405) rewrote this formula starting with the 2026 tax year: the top rate rises to 50%, that first phase-down still floors at 35% (not 20%) above roughly $43,000 AGI, and a brand-new SECOND phase-down doesn't even begin until AGI exceeds $75,000 (single/HOH) or $150,000 (joint) — only then reducing further to the 20% floor. This calculator computes your applicable percentage and credit under both the new 2026+ law and the old pre-2026 law side by side, so you can see exactly how much more this credit is now worth to your household. Eligible expenses are capped at $3,000 (one qualifying individual) or $6,000 (two or more) — a cap that OBBBA did NOT change — reduced by any dependent care FSA benefits you already excluded from income, and further capped at your (or your spouse's, if lower) earned income.
How to Use This FSA Calculator Calculator
- 1
Enter your information
Input the required values. The calculator is pre-filled with your state's data where applicable — adjust to match your specific situation for accurate results.
- 2
Review default values
Check that the pre-filled state-specific data (tax rates, median values, etc.) matches your local situation. You can override any value to customize the calculation.
- 3
Analyze your results
Review the calculated outputs. Use the breakdown table to understand exactly how each factor contributes to the final result.
- 4
Compare across states
Use the related state calculators linked below to compare results across different states — useful for relocation planning and financial comparison.
Example Calculation
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The calculator uses state-specific public data and documented estimates where available — including tax rates, median values, and cost benchmarks — to produce a personalized estimate for the inputs you provide.
Result: Results will vary based on your individual inputs. Use this calculator as a starting point, then adjust the values to test different scenarios. The methodology section below explains exactly how each result is calculated.
What Affects Your Results
State-Specific Inputs
Each state has unique rates, fee schedules, and regulatory requirements that can affect results. This page's methodology and source card identify which inputs are sourced, modeled, or user-adjustable.
Income Level
Many calculations are income-dependent due to progressive tax brackets, phase-outs, or income-based eligibility thresholds. Higher income doesn't always mean proportionally higher costs.
Local Variations
State averages may not reflect your specific city or county. Local taxes, fees, and market conditions can vary ±20% from state averages.
Annual Changes
Tax rates, fee schedules, and regulations change. Check the recorded source-review date and verify critical numbers with the relevant agency.
Tips & Best Practices
- Always verify pre-filled values against your actual data. State averages are a good starting point but your situation may differ significantly.
- Run multiple scenarios by adjusting key inputs to see how changes affect your results. This helps with planning and decision-making.
- Compare your results across states using the related calculators linked below — especially valuable if you're considering relocating or doing business in another state.
- Bookmark this page to recalculate periodically as rates change. Check the page source card and review date before relying on a pre-filled value.
- Consult a qualified professional for major financial decisions. These calculators provide estimates based on standard formulas — a CPA or financial advisor can factor in your complete financial picture.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
How did the One Big Beautiful Bill Act change the Child and Dependent Care Credit?
Effective for tax years beginning after December 31, 2025, Section 70405 of the One Big Beautiful Bill Act (Pub. L. 119-21) rewrote 26 U.S.C. Section 21(a)(2). The maximum "applicable percentage" rose from 35% to 50%. The credit still phases down as AGI rises, but the first phase-down now floors at 35% (not 20%) once AGI exceeds about $43,000, and a completely new second phase-down doesn't begin until AGI exceeds $75,000 (single/head of household) or $150,000 (married filing jointly) — only reducing to the 20% floor above that. Under prior law, almost every filer with AGI above $43,000 was stuck at the 20% floor; under the new law, a joint-filing family can keep a 35% rate all the way up to $150,000 of AGI.
What are the expense limits for the Child and Dependent Care Credit?
The amount of expenses you can use to calculate the credit is capped at $3,000 if you have one qualifying individual, or $6,000 for two or more. OBBBA did not change these dollar caps — they remain exactly as set by the Economic Growth and Tax Relief Reconciliation Act of 2001 and have no automatic inflation adjustment. If you also use a Dependent Care FSA, your cap is reduced dollar-for-dollar by whatever amount you already excluded from income through that FSA.
Can I use both a Dependent Care FSA and this credit?
Yes, but not on the same dollars. Any amount you run through a Dependent Care FSA reduces, dollar for dollar, the $3,000/$6,000 expense cap available for this credit. For most moderate-to-higher earners, running the maximum through a Dependent Care FSA first (now $7,500 under the 2026 OBBBA increase to Section 129) and then claiming this credit only on any remaining expenses tends to produce the best combined result — but the right split depends on your income, marginal tax rate, and applicable percentage, so it is worth comparing both calculators before electing your FSA amount.
Who qualifies as a "qualifying individual" for this credit?
A qualifying individual is your dependent child under age 13, or your spouse or another dependent who is physically or mentally incapable of self-care and shares your home for more than half the year. The care must be work-related — that is, it must allow you (and your spouse, if married) to work or actively look for work.
Do I need to file jointly to claim this credit if I'm married?
Generally yes — Section 21(e)(2) requires married taxpayers to file a joint return to claim this credit, with a narrow exception for spouses who lived apart for the last six months of the year and meet certain household-maintenance tests. That is also why the new, higher $150,000 second-phase-down threshold under the 2026 law is specifically defined for joint returns; single filers and heads of household use the lower $75,000 threshold.
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