What childcare tax credits are available in Texas?

In Texas, 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: No state income tax. Texas has no state income tax, so no state child care credit applies.

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 Texas have a childcare subsidy program?

Yes. Texas participates in the federal CCDF (Child Care Development Fund) program. Families of 4 earning up to $5,400/month may qualify for subsidized childcare. Apply through Texas Child Care Services (TWC). Income limits vary by family size.

Texas 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

No state income tax

Texas state credit

$5,400/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

Texas State Child Care Tax Credit

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No state income tax

Texas has no state income tax, so no state child care credit applies. You can still claim the federal Child and Dependent Care Credit on your federal return.

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