Child and Dependent Care Credit Calculator
Estimate your 2026 Child and Dependent Care Credit under the One Big Beautiful Bill Act enhancement. Enter your care expenses, filing status, AGI, and earned income to see your credit at the post-OBBBA 20%–50% rate.
Filing Status
Married Filing Separately generally cannot claim this credit unless you lived apart from your spouse for the last 6 months of the year.
Qualifying Dependents
Children under 13 when care was provided, or a spouse or dependent of any age physically or mentally incapable of self-care. The IRS expense cap is $3,000 for one dependent and $6,000 for two or more.
Annual Care Expenses Paid
Daycare, preschool, before/after-school programs, summer day camp, or in-home nanny wages that let you (and your spouse) work or look for work.
Adjusted Gross Income (AGI)
Your AGI sets the applicable credit percentage (20%–50%). Found on line 11 of Form 1040.
Earned Income
Wages, salaries, tips, and net self-employment income. On a joint return, enter the lower of the two spouses' earned incomes. Eligible expenses can't exceed that amount.
Estimates only. The credit is non-refundable and limited to your federal income tax liability. Not tax or legal advice. Consult a tax professional.
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How the Child and Dependent Care Credit works in 2026
The Child and Dependent Care Credit pays back part of what you spend on daycare, preschool, day camp, or other care that lets you (and your spouse) work or look for work. For tax year 2026, the One Big Beautiful Bill Act (P.L. 119-21, Sec. 70405) permanently raised the maximum credit rate from 35% to 50%. That's the first substantive change to IRC §21(a)(2) in decades. The $3,000 cap on expenses for one qualifying person and $6,000 for two or more were not changed.
Four rules govern the credit: who qualifies as a dependent, what expenses count, the $3,000 / $6,000 expense cap, and the AGI-tied applicable percentage between 20% and 50%. The credit is non-refundable. It can offset your federal income tax down to zero but won't generate a refund beyond that. Claim it on Form 2441 along with your Form 1040.
For a family at AGI $15,000 with two children and $6,000 of expenses, the maximum credit jumped from $2,100 (pre-OBBBA) to $3,000. Higher-AGI families that previously hit the 20% floor still get 20%. The boost is concentrated at the bottom and middle of the income distribution.
Qualifying expenses: what counts and what doesn't
The care must be work-related. It has to let you (and your spouse, if filing jointly) be employed or actively job-hunting. Caregiving on personal time doesn't qualify, even if you'd otherwise pay for it.
| Counts | Doesn't Count |
|---|---|
| Licensed daycare center | Overnight summer camp |
| Preschool / pre-K | Kindergarten and higher tuition |
| Before/after-school programs | Tutoring during school hours |
| Summer day camp (sport or specialty OK) | Food, lodging, clothing costs |
| In-home nanny / babysitter wages + employer payroll tax | Care by your own dependent or child under 19 |
| Adult day care for a disabled spouse or dependent | Transportation to and from care (unless billed by provider) |
| Cook/housekeeper if part of providing care | Care while you're not working or job-searching |
2026 AGI percentage table (post-OBBBA)
Single, Head of Household, and Married Filing Separately filers use one column. Married Filing Jointly and Qualifying Surviving Spouse use the other. The percentage drops 1 point per $2,000 of AGI in stage 1 (50% to 35%), then 1 point per $2,000 ($4,000 for joint filers) in stage 2 (35% to 20%).
| AGI (Single / HoH / MFS) | AGI (MFJ / QSS) | Applicable % | Max credit, 1 dep | Max credit, 2+ deps |
|---|---|---|---|---|
| $0 – $15,000 | $0 – $15,000 | 50% | $1,500 | $3,000 |
| $15,001 – $25,000 | $15,001 – $25,000 | 49% – 45% | $1,470 – $1,350 | $2,940 – $2,700 |
| $25,001 – $35,000 | $25,001 – $35,000 | 44% – 40% | $1,320 – $1,200 | $2,640 – $2,400 |
| $35,001 – $45,000 | $35,001 – $45,000 | 39% – 35% | $1,170 – $1,050 | $2,340 – $2,100 |
| $45,001 – $75,000 | $45,001 – $150,000 | 35% | $1,050 | $2,100 |
| $75,001 – $85,000 | $150,001 – $170,000 | 34% – 30% | $1,020 – $900 | $2,040 – $1,800 |
| $85,001 – $95,000 | $170,001 – $190,000 | 29% – 25% | $870 – $750 | $1,740 – $1,500 |
| $95,001 – $105,000 | $190,001 – $210,000 | 24% – 20% | $720 – $600 | $1,440 – $1,200 |
| $105,001+ | $210,001+ | 20% (floor) | $600 | $1,200 |
See the full step-by-step table
| AGI (Single / HoH / MFS) | AGI (MFJ / QSS) | Applicable % | Max credit, 1 dep | Max credit, 2+ deps |
|---|---|---|---|---|
| $0 – $15,000 | $0 – $15,000 | 50% | $1,500 | $3,000 |
| $15,001 – $17,000 | $15,001 – $17,000 | 49% | $1,470 | $2,940 |
| $17,001 – $19,000 | $17,001 – $19,000 | 48% | $1,440 | $2,880 |
| $19,001 – $21,000 | $19,001 – $21,000 | 47% | $1,410 | $2,820 |
| $21,001 – $23,000 | $21,001 – $23,000 | 46% | $1,380 | $2,760 |
| $23,001 – $25,000 | $23,001 – $25,000 | 45% | $1,350 | $2,700 |
| $25,001 – $27,000 | $25,001 – $27,000 | 44% | $1,320 | $2,640 |
| $27,001 – $29,000 | $27,001 – $29,000 | 43% | $1,290 | $2,580 |
| $29,001 – $31,000 | $29,001 – $31,000 | 42% | $1,260 | $2,520 |
| $31,001 – $33,000 | $31,001 – $33,000 | 41% | $1,230 | $2,460 |
| $33,001 – $35,000 | $33,001 – $35,000 | 40% | $1,200 | $2,400 |
| $35,001 – $37,000 | $35,001 – $37,000 | 39% | $1,170 | $2,340 |
| $37,001 – $39,000 | $37,001 – $39,000 | 38% | $1,140 | $2,280 |
| $39,001 – $41,000 | $39,001 – $41,000 | 37% | $1,110 | $2,220 |
| $41,001 – $43,000 | $41,001 – $43,000 | 36% | $1,080 | $2,160 |
| $43,001 – $45,000 | $43,001 – $45,000 | 35% | $1,050 | $2,100 |
| $45,001 – $75,000 | $45,001 – $150,000 | 35% | $1,050 | $2,100 |
| $75,001 – $77,000 | $150,001 – $154,000 | 34% | $1,020 | $2,040 |
| $77,001 – $79,000 | $154,001 – $158,000 | 33% | $990 | $1,980 |
| $79,001 – $81,000 | $158,001 – $162,000 | 32% | $960 | $1,920 |
| $81,001 – $83,000 | $162,001 – $166,000 | 31% | $930 | $1,860 |
| $83,001 – $85,000 | $166,001 – $170,000 | 30% | $900 | $1,800 |
| $85,001 – $87,000 | $170,001 – $174,000 | 29% | $870 | $1,740 |
| $87,001 – $89,000 | $174,001 – $178,000 | 28% | $840 | $1,680 |
| $89,001 – $91,000 | $178,001 – $182,000 | 27% | $810 | $1,620 |
| $91,001 – $93,000 | $182,001 – $186,000 | 26% | $780 | $1,560 |
| $93,001 – $95,000 | $186,001 – $190,000 | 25% | $750 | $1,500 |
| $95,001 – $97,000 | $190,001 – $194,000 | 24% | $720 | $1,440 |
| $97,001 – $99,000 | $194,001 – $198,000 | 23% | $690 | $1,380 |
| $99,001 – $101,000 | $198,001 – $202,000 | 22% | $660 | $1,320 |
| $101,001 – $103,000 | $202,001 – $206,000 | 21% | $630 | $1,260 |
| $103,001 – $105,000 | $206,001 – $210,000 | 20% (minimum) | $600 | $1,200 |
| $105,001+ | $210,001+ | 20% | $600 | $1,200 |
Dependent Care FSA vs. the Credit: which is better?
You can't claim the same dollars on both, but you can use them in tandem. A Dependent Care FSA (DCFSA) under IRC §129 lets you exclude up to $7,500 in 2026 (raised from $5,000 by OBBBA Sec. 70404) from federal income tax, FICA (7.65%), and most state income taxes. The Child and Dependent Care Credit instead returns 20%–50% of after-tax expenses.
- Lower AGI families (< ~$45,000): the credit usually wins, because the 50% rate beats any combined tax savings from the FSA.
- Higher AGI families (~$100,000+): a DCFSA usually wins because the 22%+ marginal bracket plus FICA exceeds the 20% credit floor.
- Two or more dependents: you can stack. Max $7,500 to the FSA, then claim the credit on care expenses up to a residual $6,000 - DCFSA contribution. With one dependent ($3,000 cap), even a $5,000 DCFSA wipes out the credit-eligible amount entirely.
Worked example. A family with $80,000 AGI (MFJ), two children, and $10,000 of daycare expenses funds $7,500 to a DCFSA. That saves roughly $7,500 × (22% federal + 7.65% FICA) = $2,224. They have $2,500 of remaining expenses, but the cap for two dependents is $6,000 minus $7,500 of DCFSA exclusion, effectively $0 remaining for the credit. Net: $2,224 in DCFSA savings.
Source: IRC §21 as amended by P.L. 119-21 (One Big Beautiful Bill Act), Sec. 70405; IRS Publication 503; IRS Form 2441 instructions.
Frequently Asked Questions
Common questions about the Child and Dependent Care Credit in 2026
Who counts as a "qualifying person" for the Child and Dependent Care Credit?
A child under age 13 when the care was provided, OR a spouse or other dependent of any age who is physically or mentally incapable of self-care and lived with you for more than half the year. The dependent must generally be your tax dependent, with limited exceptions for divorced parents.
What expenses qualify for the credit in 2026?
Daycare, preschool, before- and after-school care, summer day camp, in-home babysitter or nanny wages (including their share of payroll taxes you paid), and adult day care for a disabled spouse or dependent. Expenses must let you (and your spouse, if filing jointly) work or look for work.
What expenses don't qualify?
Overnight camp, tuition for kindergarten or higher grades, food/lodging/clothing costs, transportation costs to and from the care provider (unless provided by the provider), and care provided by your own dependent or your own child under 19.
Can I claim the credit if I use a Dependent Care FSA?
Yes, but you cannot use the same dollars for both. DCFSA dollars excluded from your income reduce the expenses eligible for the credit, dollar for dollar. With two or more dependents and a $7,500 DCFSA, you could still claim the credit on up to $6,000 - $7,500 = $0 of additional expenses. With one dependent ($3,000 cap), even a $5,000 DCFSA wipes out the credit-eligible amount entirely.
How much did the One Big Beautiful Bill Act change the credit for 2026?
The maximum applicable percentage rose from 35% to 50%, and the phase-down was restructured. The $3,000 / $6,000 expense caps stayed the same. For families at AGI $15,000 with two children and $6,000 in expenses, the maximum credit jumped from $2,100 to $3,000.
Is the Child and Dependent Care Credit refundable?
No. It is non-refundable, so it can reduce your federal income tax to zero but won't generate a refund beyond that. Unused credit cannot be carried forward to a later year.
What's the earned income test, and what if my spouse is a student?
Both spouses (on a joint return) must have earned income, and your eligible expenses can't exceed the smaller of the two earned incomes. A spouse who is a full-time student for at least 5 months OR is physically/mentally incapable of self-care is treated as having earned income of $250 per month (one qualifying person) or $500 per month (two or more).
What's the difference between the Child and Dependent Care Credit and the Child Tax Credit?
The Child Tax Credit (CTC) is $2,200 per qualifying child under 17 in 2026 and is partially refundable, with no requirement that you paid for care. The Child and Dependent Care Credit instead reimburses up to 50% of out-of-pocket care costs that let you work. The two are stacked separately, not mutually exclusive.
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