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Virginia families paying $1,400/month for daycare can save $2,000-$4,500/year by stacking the federal CDCTC, the state credit (25% of federal credit), and a Dependent Care FSA. The state credit is non-refundable.

Virginia Childcare Tax Credit & Savings Calculator (2026)

Full-time daycare in Virginia averages $1,400/month ($16,800/year). Here's what you can claim back.

Avg. Daycare Cost

$1,400/mo

Virginia, center-based infant care

Federal Credit (CDCTC)

up to $3,000

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

Virginia State Credit

25% 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

Virginia Childcare Tax Credit Details (2026)

Credit Type

25% 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 Virginia Family

1 child, married filing jointly, $16,800/year in daycare. Proposed 2026 OBBA rates.

Income (AGI)	Federal	VA	FSA	Total
$30K	$1,290	$323	$983	$2,596
$50K	$990	$248	$983	$2,221
$75K	$600	$150	$1,483	$2,233
$100K	$600	$150	$1,483	$2,233

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 Virginia Childcare Tax Benefits

How much is Virginia's childcare tax credit worth?

Virginia's childcare tax credit is 25% 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 Virginia?

Full-time infant center-based care in Virginia averages $1,400/month ($16,800/year). Costs vary by city. See our Virginia 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 Virginia Parents

Virginia Daycare Costs

City-by-city rates

Virginia Subsidy Eligibility

CCDF income limits

Interactive Tax Calculator

See your exact savings

Affordability Calculator

% of income going to childcare

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