Childcare Tax Credit by State (2026)
27 states offer their own childcare tax credit on top of the federal one. Most families only claim the federal credit and leave state money on the table. Pick your state to see the combined amount.
Proposed 2026 enhancement: One Big Beautiful Bill Act
The bill proposes raising the max federal credit rate from 35% to 50%. Not yet law — calculators below use current 20–35% rates. Check IRS.gov for status before filing.
Quick Federal Credit Estimate
Pick your state below for the full combined federal + state calculation.
Select your state below to add the state credit.
States with Childcare Tax Credits
Federal Credit Only (no added state credit)
These states either have no income tax or no separate childcare credit. The federal CDCTC still applies.
How the Federal Credit Works
The federal Child and Dependent Care Credit (CDCTC) lets you claim 20–35% of qualifying childcare expenses, up to $3,000 for one child or $6,000 for two or more. You file it on Form 2441 with your federal return.
| AGI | Credit rate | 1 child max | 2+ children max |
|---|---|---|---|
| Under $15,000 | 35% | $1,050 | $2,100 |
| $15,001–$43,000 | 21–34% | $630–$1,020 | $1,260–$2,040 |
| Over $43,000 | 20% | $600 | $1,200 |
Married Filing Separately cannot claim this credit. Married Filing Jointly, Single, and Head of Household can.
Stacking FSA + Tax Credit
If your employer offers a Dependent Care FSA, use it — it saves more per dollar than the credit alone for most families. The rules for combining both:
- 1.Max the FSA first ($5,000/year). It reduces your taxable income, saving income tax plus payroll taxes.
- 2.With one child: $3,000 expense cap minus $5,000 FSA = no federal credit base. FSA covers everything.
- 3.With two+ children: $6,000 cap minus $5,000 FSA = $1,000 left. You get 20% of $1,000 = $200 federal credit.
- 4.State credits work the same way — apply after FSA, to remaining qualifying expenses.