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New York families paying $1,900/month for daycare can save $2,000-$4,500/year by stacking the federal CDCTC, the state credit (20-110% of federal (income-based)), and a Dependent Care FSA. The state credit is refundable.

New York Childcare Tax Credit & Savings Calculator (2026)

Full-time daycare in New York averages $1,900/month ($22,800/year). Here's what you can claim back.

Avg. Daycare Cost

$1,900/mo

New York, center-based infant care

Federal Credit (CDCTC)

up to $3,000

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

New York State Credit

20-110% of federal (income-based)

Refundable • Income-based sliding scale

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

New York Childcare Tax Credit Details (2026)

Credit Type

20-110% of federal (income-based)

Refundable?

Yes — you get money back even if you owe no state tax

Income Limit

Income-based sliding scale

Stacks With

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

Example Savings for a New York Family

1 child, married filing jointly, $22,800/year in daycare. Proposed 2026 OBBA rates.

Income (AGI)	Federal	NY	FSA	Total
$30K	$1,290	$839	$983	$3,112
$50K	$990	$644	$983	$2,617
$75K	$600	$390	$1,483	$2,473
$100K	$600	$390	$1,483	$2,473

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 New York Childcare Tax Benefits

How much is New York's childcare tax credit worth?

New York's childcare tax credit is 20-110% of federal (income-based). It is fully refundable, so you get money back even if you owe no state tax. This stacks on top of the federal CDCTC and FSA savings.

How much does daycare cost in New York?

Full-time infant center-based care in New York averages $1,900/month ($22,800/year). Costs vary by city. See our New York 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 New York Parents

New York Daycare Costs

City-by-city rates

New York Subsidy Eligibility

CCDF income limits

Interactive Tax Calculator

See your exact savings

Affordability Calculator

% of income going to childcare

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