What childcare tax credits are available in Massachusetts?

In Massachusetts, 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: None. Massachusetts has no state child care tax credit, though some dependent care expenses may be deductible from Massachusetts adjusted gross income.

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 Massachusetts have a childcare subsidy program?

Yes. Massachusetts participates in the federal CCDF (Child Care Development Fund) program. Families of 4 earning up to $9,000/month may qualify for subsidized childcare. Apply through Massachusetts DTA/EEC Child Care Financial Assistance. Income limits vary by family size.

Massachusetts Childcare Tax Credits (2026)

Federal Child and Dependent Care Credit, no state credit, and CCDF subsidy eligibility in one place.

20–35%

Federal credit rate

None

Massachusetts state credit

$9,000/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

Massachusetts State Child Care Tax Credit

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None

Massachusetts has no state child care tax credit, though some dependent care expenses may be deductible from Massachusetts adjusted gross income. You can still claim the federal Child and Dependent Care Credit on your federal return.

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