DaycareCalc

How Much Can You Save on Childcare Taxes in Vermont?

Enter your income, filing status, and childcare expenses below. The calculator shows your federal credit plus Vermont's state credit in about 10 seconds.

20–35%
Federal credit rate
50% of federal credit
Vermont state credit
$9,325/mo
CCDF income limit (family of 4)

Your Childcare Tax Credit in Vermont

Fill in your details. The credit amount updates instantly.

Your Estimated Childcare Tax Savings
Federal Credit Rate
Qualifying Expenses
Federal Credit (Form 2441)
Vermont State Credit
50% of federal credit
Total Estimated Tax Savings
Federal + Vermont credits combined

Vermont State Child Care Tax Credit

+
50% of federal credit
Refundable

Vermont's Child and Dependent Care Credit is 50% of the federal credit. Fully refundable.

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

Who Counts as a Qualifying Provider?

The IRS is specific about this. Your childcare provider must meet all of these:

  • Licensed daycare centers, preschools, and before/after school programs
  • In-home care providers (nannies, babysitters) who report their income
  • Day camps (not overnight camps)
  • Your spouse, the child's other parent, or anyone you claim as a dependent
  • Your child who is under 19 (even if they babysit siblings)

You'll need the provider's name, address, and Tax ID (or SSN) for Form 2441. Ask for it before tax season.

Vermont Childcare Subsidy (CCDF)

Low- and moderate-income families may qualify for subsidized care through the federal CCDF program.

Income limit (family of 4)
$9,325/month
Max subsidy (infant center)
$1,000/month
Coverage of average infant cost
67%

Average Daycare Costs in Vermont (2026)

Infant center care $1,500/month
Toddler center care $1,320/month
Preschool center care $1,120/month

Tax Credits in Other States