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Montana families paying $950/month for daycare can save $2,000-$4,500/year by stacking the federal CDCTC, the state credit (40% of federal credit), and a Dependent Care FSA. The state credit is non-refundable.

Montana Childcare Tax Credit & Savings Calculator (2026)

Full-time daycare in Montana averages $950/month ($11,400/year). Here's what you can claim back.

Avg. Daycare Cost

$950/mo

Montana, center-based infant care

Federal Credit (CDCTC)

up to $3,000

20-50% of $6K max (proposed 2026)

Montana State Credit

40% of federal credit

Non-refundable

Calculate Your Exact Savings

Enter your income, filing status, and number of kids to see your net daycare cost after all credits and FSA savings.

Open Tax Calculator

Montana Childcare Tax Credit Details (2026)

Credit Type

40% of federal credit

Refundable?

No — reduces your state tax bill but won't generate a refund

Stacks With

Federal CDCTC + Dependent Care FSA. All three can be claimed together.

Example Savings for a Montana Family

1 child, married filing jointly, $11,400/year in daycare. Proposed 2026 OBBA rates.

Income (AGI)	Federal	MT	FSA	Total
$30K	$1,290	$516	$983	$2,789
$50K	$990	$396	$983	$2,369
$75K	$600	$240	$1,483	$2,323
$100K	$600	$240	$1,483	$2,323

Federal rates: proposed OBBA 2026 schedule (50% max). FSA: $5,000 pre-tax, savings include FICA 7.65%. State credit calculations are approximate.

Questions About Montana Childcare Tax Benefits

How much is Montana's childcare tax credit worth?

Montana's childcare tax credit is 40% of federal credit. It is non-refundable, so it reduces your state tax bill but will not generate a refund. This stacks on top of the federal CDCTC and FSA savings.

How much does daycare cost in Montana?

Full-time infant center-based care in Montana averages $950/month ($11,400/year). Costs vary by city. See our Montana 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.

More for Montana Parents

Montana Daycare Costs

City-by-city rates

Montana Subsidy Eligibility

CCDF income limits

Interactive Tax Calculator

See your exact savings

Affordability Calculator

% of income going to childcare

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