What childcare tax credits are available in California?

In California, you can claim the federal Child and Dependent Care Credit (20–35% of qualifying expenses, up to $3,000 for one child or $6,000 for two or more). The federal credit rate is 20% for most families earning over $43,000. State credit: Up to 30% of federal credit. California's Child and Dependent Care Expenses Credit is refundable for families earning under $100,000. The percentage ranges from 15%–30% of the federal credit based on income. Families earning over $100,000 receive 0%.

How much is the federal child care tax credit in 2026?

The federal Child and Dependent Care Credit for 2026 is 20–35% of qualifying expenses. Most families (AGI over $43,000) get 20%. The expense cap is $3,000 for one child or $6,000 for two or more — giving a maximum credit of $600 (one child) or $1,200 (two+ children). Lower-income families earn a higher rate, up to 35% for AGI under $15,000.

Does California have a childcare subsidy program?

Yes. California participates in the federal CCDF (Child Care Development Fund) program. Families of 4 earning up to $7,800/month may qualify for subsidized childcare. Apply through California CalWORKs / Child Care Subsidy. Income limits vary by family size.

California Childcare Tax Credits (2026)

Federal Child and Dependent Care Credit, California state credit, and CCDF subsidy eligibility in one place.

20–35%

Federal credit rate

Up to 30% of federal credit

California state credit

$7,800/mo

CCDF income limit (family of 4)

Federal Child Care Tax Credit Calculator

Rates are the same nationwide — income determines your percentage (20–35%).

Your Adjusted Gross Income (AGI)

Number of Children Under 13

1 child

2 children

3 children

Annual Childcare Expenses

I use a Dependent Care FSA ($5,000/year)

Your Estimated Federal Credit (Form 2441)

Credit Rate

Qualifying Expenses

Estimated Federal Credit

California State Child Care Tax Credit

Up to 30% of federal credit

Refundable

California's Child and Dependent Care Expenses Credit is refundable for families earning under $100,000. The percentage ranges from 15%–30% of the federal credit based on income. Families earning over $100,000 receive 0%.

State tax laws change. Verify with the California Department of Revenue before filing.