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South Carolina families paying $800/month for daycare can save $2,000-$4,500/year by stacking the federal CDCTC, the state credit (7% of qualifying expenses), and a Dependent Care FSA. The state credit is non-refundable.

South Carolina Childcare Tax Credit & Savings Calculator (2026)

Full-time daycare in South Carolina averages $800/month ($9,600/year). Here's what you can claim back.

Avg. Daycare Cost

$800/mo

South Carolina, center-based infant care

Federal Credit (CDCTC)

up to $3,000

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

South Carolina State Credit

7% of qualifying expenses

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

South Carolina Childcare Tax Credit Details (2026)

Credit Type

7% of qualifying expenses

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 South Carolina Family

1 child, married filing jointly, $9,600/year in daycare. Proposed 2026 OBBA rates.

Income (AGI)	Federal	SC	FSA	Total
$30K	$1,290	$672	$983	$2,945
$50K	$990	$672	$983	$2,645
$75K	$600	$672	$1,483	$2,755
$100K	$600	$672	$1,483	$2,755

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 South Carolina Childcare Tax Benefits

How much is South Carolina's childcare tax credit worth?

South Carolina's childcare tax credit is 7% of qualifying expenses. 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 South Carolina?

Full-time infant center-based care in South Carolina averages $800/month ($9,600/year). Costs vary by city. See our South Carolina 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 South Carolina Parents

South Carolina Daycare Costs

City-by-city rates

South Carolina Subsidy Eligibility

CCDF income limits

Interactive Tax Calculator

See your exact savings

Affordability Calculator

% of income going to childcare

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