What childcare tax credits are available in Oregon?

In Oregon, 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: 40–50% of federal (lower incomes). Oregon's Child Care Credit is 40–50% of the federal credit for families earning under $25,000, phasing down to 20% for higher incomes. Refundable for lower-income families.

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 Oregon have a childcare subsidy program?

Yes. Oregon participates in the federal CCDF (Child Care Development Fund) program. Families of 4 earning up to $6,800/month may qualify for subsidized childcare. Apply through Oregon Employment Related Day Care (ERDC). Income limits vary by family size.

Oregon Childcare Tax Credits (2026)

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

20–35%

Federal credit rate

40–50% of federal (lower incomes)

Oregon state credit

$6,800/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

Oregon State Child Care Tax Credit

40–50% of federal (lower incomes)

Refundable

Oregon's Child Care Credit is 40–50% of the federal credit for families earning under $25,000, phasing down to 20% for higher incomes. Refundable for lower-income families.

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