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Oregon families paying $1,350/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.

Oregon Childcare Tax Credit & Savings Calculator (2026)

Full-time daycare in Oregon averages $1,350/month ($16,200/year). Here's what you can claim back.

Avg. Daycare Cost

$1,350/mo

Oregon, center-based infant care

Federal Credit (CDCTC)

up to $3,000

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

Oregon State Credit

40% of federal credit

Non-refundable • AGI under $25K for full credit, phases out above $75K

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

Oregon Childcare Tax Credit Details (2026)

Credit Type

40% of federal credit

Refundable?

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

Income Limit

AGI under $25K for full credit, phases out above $75K

Stacks With

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

Example Savings for a Oregon Family

1 child, married filing jointly, $16,200/year in daycare. Proposed 2026 OBBA rates.

Income (AGI)	Federal	OR	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 Oregon Childcare Tax Benefits

How much is Oregon's childcare tax credit worth?

Oregon'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 Oregon?

Full-time infant center-based care in Oregon averages $1,350/month ($16,200/year). Costs vary by city. See our Oregon 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 Oregon Parents

Oregon Daycare Costs

City-by-city rates

Oregon Subsidy Eligibility

CCDF income limits

Interactive Tax Calculator

See your exact savings

Affordability Calculator

% of income going to childcare

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