Alaska families paying $950/month for daycare can save $1,850-$3,400/year through the federal CDCTC and a Dependent Care FSA. Alaska has no state income tax, so there is no state-level credit, but your take-home pay is already higher than in most states.
Alaska Childcare Tax Credit & Savings Calculator (2026)
Full-time daycare in Alaska averages $950/month ($11,400/year). Here's what you can claim back.
Enter your income, filing status, and number of kids to see your net daycare cost after all credits and FSA savings.
Open Tax CalculatorAlaska Childcare Tax Credit Details (2026)
Alaska has no state income tax, so there's no state-level childcare tax credit. You still qualify for the federal Child and Dependent Care Credit (CDCTC) and Dependent Care FSA through your employer.
The good news: no state income tax means your take-home pay is already higher. A family earning $80K in Alaska keeps roughly $2,000-$5,000 more annually than the same family in a state with 5-7% income tax.
Example Savings for a Alaska Family
1 child, married filing jointly, $11,400/year in daycare. Proposed 2026 OBBA rates.
| Income (AGI) | Federal | FSA | Total |
|---|---|---|---|
| $30K | $1,290 | $983 | $2,273 |
| $50K | $990 | $983 | $1,973 |
| $75K | $600 | $1,483 | $2,083 |
| $100K | $600 | $1,483 | $2,083 |
Questions About Alaska Childcare Tax Benefits
Does Alaska have a childcare tax credit?
Alaska has no state income tax, so there is no state-level childcare tax credit. You still qualify for the federal CDCTC (up to $3,000 proposed for 2026) and a Dependent Care FSA through your employer ($1,250-$1,900/year savings).
How much does daycare cost in Alaska?
Full-time infant center-based care in Alaska averages $950/month ($11,400/year). Costs vary by city. See our Alaska daycare cost page for city-level rates.
Can I claim both the federal credit and a Dependent Care FSA?
Yes, but they share an expense pool. If you put $5,000 in your FSA, the max qualifying expenses for the federal credit drops from $3,000/$6,000 to $0/$1,000. In most cases, the FSA saves more per dollar (income tax + FICA savings), so use it first.