What childcare tax credits are available in Minnesota?

In Minnesota, 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 $1,050/child (lower incomes). Minnesota's Working Family Credit includes a refundable child care component. Families earning under ~$54,000 may claim up to $1,050 per child. The credit phases out with income and is fully refundable.

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 Minnesota have a childcare subsidy program?

Yes. Minnesota participates in the federal CCDF (Child Care Development Fund) program. Families of 4 earning up to $7,200/month may qualify for subsidized childcare. Apply through Minnesota CCAP (Child Care Assistance Program). Income limits vary by family size.

Minnesota Childcare Tax Credits (2026)

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

20–35%

Federal credit rate

Up to $1,050/child (lower incomes)

Minnesota state credit

$7,200/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

Minnesota State Child Care Tax Credit

Up to $1,050/child (lower incomes)

Refundable

Minnesota's Working Family Credit includes a refundable child care component. Families earning under ~$54,000 may claim up to $1,050 per child. The credit phases out with income and is fully refundable.

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