How much is the adoption tax credit for 2026?

For taxable years beginning in 2026, Rev. Proc. 2025-32 sets the adoption credit under § 23 at $17,670. That figure is the credit allowed for an adoption of a child with special needs, and it is also the ceiling for any other adoption, where the maximum credit is the amount of qualified adoption expenses up to $17,670. The full ceiling is available only below the income phase-out range.

Is any of the adoption credit refundable in 2026?

Yes, in part. The One, Big, Beautiful Bill Act added a refundable portion to § 23, treating so much of the credit allowed as does not exceed a set amount as refundable, with that amount adjusted for inflation for taxable years beginning after December 31, 2025. Rev. Proc. 2025-32 sets it at $5,120 for taxable years beginning in 2026. The rest of the $17,670 remains nonrefundable.

How much did the adoption credit increase for 2026?

It moved from $17,280 for the prior year to $17,670 for taxable years beginning in 2026. That is the routine inflation adjustment, which Rev. Proc. 2025-32 states is generally determined by reference to § 1(f). The refundable portion of $5,120 is new rather than an increase: it comes from an amendment to § 23 made by the One, Big, Beautiful Bill Act, not from the annual adjustment.

Is the adoption credit different for a child with special needs?

The amount is the same but it is described differently. Under § 23 the credit allowed for an adoption of a child with special needs is $17,670 for taxable years beginning in 2026, stated as the credit itself. For other adoptions, $17,670 is the maximum credit and what can be claimed is the amount of qualified adoption expenses up to that ceiling, so actual spending governs.

Does income affect the adoption credit in 2026?

Yes. The available adoption credit begins to phase out under § 23 for taxpayers with modified adjusted gross income above the threshold Rev. Proc. 2025-32 states for taxable years beginning in 2026, and it is completely phased out at the higher modified adjusted gross income the same section states. Below the lower threshold the whole $17,670 ceiling is available; at or above the higher figure no credit is allowed.

Does employer adoption assistance use the same limit as the credit?

For 2026 the numbers match, but the provisions are separate. The credit is in § 23; the exclusion from an employee's gross income for qualified adoption expenses paid or incurred by an employer under an adoption assistance program is in § 137. Rev. Proc. 2025-32 sets both at $17,670 for taxable years beginning in 2026 and gives both the same modified adjusted gross income phase-out range.

Which tax year do the 2026 adoption credit amounts apply to?

Taxable years beginning in 2026. Rev. Proc. 2025-32 states in its effective date section that its 2026 adjusted items apply to taxable years beginning in 2026, with a separate calendar year rule for a listed set of items that does not include the adoption credit. So a taxpayer whose taxable year is not the calendar year uses $17,670 for the taxable year beginning in 2026.

Where do the 2026 adoption credit figures come from?

From Rev. Proc. 2025-32, which modifies Rev. Proc. 2024-40 to reflect amendments made to the Code by the One, Big, Beautiful Bill Act and sets inflation-adjusted items for 2026 as the Code stood on October 9, 2025. Its adoption credit section states $17,670 and $5,120. The revenue procedure adds that later amendments may require additional guidance to confirm the adjustments still apply.

Adoption Credit 2026

Name: Adoption Credit
Creator: IRS

Current year

For 2026, the Adoption Credit figures are $17,670 (Maximum credit), $5,120 (Refundable credit), $265,080 (Phase-out threshold) and $305,080 (Fully phased out).

Maximum credit$17,670

Refundable credit$5,120

Phase-out threshold$265,080

Fully phased out$305,080

Effective 2026-01-01Source: Rev. Proc. 2025-32 (IRS)Verified 2026-09-02

Compared with 2025

Item	2025	2026	Change
Maximum credit	$17,280	$17,670	+$390 (+2.3%)
Refundable credit	$5,000	$5,120	+$120 (+2.4%)
Phase-out threshold	$259,190	$265,080	+$5,890 (+2.3%)
Fully phased out	$299,190	$305,080	+$5,890 (+2.0%)

Who it applies to

The credit applies to a taxpayer who adopts a child. For an adoption of a child with special needs the credit allowed for taxable years beginning in 2026 is $17,670. For any other adoption, $17,670 is the ceiling: the maximum credit is the amount of qualified adoption expenses up to that figure. Separately, $5,120 of the credit allowed under § 23 may be refundable for 2026, which reaches taxpayers whose tax liability is too small to absorb the whole credit. Income still limits the credit. It begins to phase out under § 23 for taxpayers with modified adjusted gross income above the threshold Rev. Proc. 2025-32 states, and is completely phased out at the higher modified adjusted gross income it also states. Employees receiving employer-paid adoption assistance under § 137 are covered by a separate section of the same revenue procedure, which carries the same $17,670 ceiling.

What changed this year, and why

For taxable years beginning in 2026 the adoption credit under § 23 is $17,670, up from $17,280 for the prior year. The same $17,670 is stated twice: as the credit allowed for an adoption of a child with special needs, and as the ceiling on qualified adoption expenses for any other adoption. The larger change is structural. The One, Big, Beautiful Bill Act added a refundable portion to § 23, and Rev. Proc. 2025-32 sets the amount of the credit that may be refundable at $5,120 for 2026. Rev. Proc. 2025-32 modifies Rev. Proc. 2024-40 and states these items for the Code as in effect on October 9, 2025.

Common questions

How much is the adoption tax credit for 2026?: For taxable years beginning in 2026, Rev. Proc. 2025-32 sets the adoption credit under § 23 at $17,670. That figure is the credit allowed for an adoption of a child with special needs, and it is also the ceiling for any other adoption, where the maximum credit is the amount of qualified adoption expenses up to $17,670. The full ceiling is available only below the income phase-out range.
Is any of the adoption credit refundable in 2026?: Yes, in part. The One, Big, Beautiful Bill Act added a refundable portion to § 23, treating so much of the credit allowed as does not exceed a set amount as refundable, with that amount adjusted for inflation for taxable years beginning after December 31, 2025. Rev. Proc. 2025-32 sets it at $5,120 for taxable years beginning in 2026. The rest of the $17,670 remains nonrefundable.
How much did the adoption credit increase for 2026?: It moved from $17,280 for the prior year to $17,670 for taxable years beginning in 2026. That is the routine inflation adjustment, which Rev. Proc. 2025-32 states is generally determined by reference to § 1(f). The refundable portion of $5,120 is new rather than an increase: it comes from an amendment to § 23 made by the One, Big, Beautiful Bill Act, not from the annual adjustment.
Is the adoption credit different for a child with special needs?: The amount is the same but it is described differently. Under § 23 the credit allowed for an adoption of a child with special needs is $17,670 for taxable years beginning in 2026, stated as the credit itself. For other adoptions, $17,670 is the maximum credit and what can be claimed is the amount of qualified adoption expenses up to that ceiling, so actual spending governs.
Does income affect the adoption credit in 2026?: Yes. The available adoption credit begins to phase out under § 23 for taxpayers with modified adjusted gross income above the threshold Rev. Proc. 2025-32 states for taxable years beginning in 2026, and it is completely phased out at the higher modified adjusted gross income the same section states. Below the lower threshold the whole $17,670 ceiling is available; at or above the higher figure no credit is allowed.
Does employer adoption assistance use the same limit as the credit?: For 2026 the numbers match, but the provisions are separate. The credit is in § 23; the exclusion from an employee's gross income for qualified adoption expenses paid or incurred by an employer under an adoption assistance program is in § 137. Rev. Proc. 2025-32 sets both at $17,670 for taxable years beginning in 2026 and gives both the same modified adjusted gross income phase-out range.
Which tax year do the 2026 adoption credit amounts apply to?: Taxable years beginning in 2026. Rev. Proc. 2025-32 states in its effective date section that its 2026 adjusted items apply to taxable years beginning in 2026, with a separate calendar year rule for a listed set of items that does not include the adoption credit. So a taxpayer whose taxable year is not the calendar year uses $17,670 for the taxable year beginning in 2026.
Where do the 2026 adoption credit figures come from?: From Rev. Proc. 2025-32, which modifies Rev. Proc. 2024-40 to reflect amendments made to the Code by the One, Big, Beautiful Bill Act and sets inflation-adjusted items for 2026 as the Code stood on October 9, 2025. Its adoption credit section states $17,670 and $5,120. The revenue procedure adds that later amendments may require additional guidance to confirm the adjustments still apply.

Every amount on this page is a published figure rather than yours. The Adoption credit after the income phase-out takes the number you enter and works it out against them, showing which published figure it used.

The credit shrinks as income rises

For the 2026 Adoption Credit, the amount a family can claim is reduced once modified adjusted gross income (MAGI) crosses a set threshold. The income limit on the credit and on the exclusion for employer-provided adoption benefits is based entirely on MAGI. In 2026, the credit begins to phase out when MAGI exceeds $265,080. Above that level, the available credit is reduced proportionally for each dollar of additional income. Once MAGI reaches $305,080 or more, the credit is fully phased out and no adoption credit can be claimed for that year. The phase-out applies to the combined total of the refundable and nonrefundable portions of the credit as well as the exclusion for employer-provided benefits. Taxpayers whose MAGI falls below the $265,080 threshold can claim the full credit for which they qualify without any income-based reduction. Those in the phase-out range should use the worksheet instructions for Form 8839 to calculate the reduced amount.

The income limit on the adoption credit or exclusion is based on modified adjusted gross income (MAGI).
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

The credit and the employer exclusion cannot cover the same expense

An employee whose employer runs a qualified adoption assistance program can use two different tax benefits for the same adoption: the exclusion, which keeps employer-provided benefits out of income, and the credit, which offsets tax on expenses paid out of pocket. What cannot happen is both benefits resting on the same dollar of expense. The expenses have to be allocated, with one set of costs supporting the exclusion and a different set supporting the credit. This is why Part III of Form 8839 is completed before Part II - the exclusion is figured first, and only expenses left over can be carried into the credit. For 2026 each ceiling is $17,670 per eligible child, and each is measured on its own expenses, so the same adoption can reach both only if the spending behind them is kept apart.

But, you can’t claim both a credit and exclusion for the same expenses.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

Unused credit carries forward

If your nonrefundable adoption credit exceeds the limit shown on Form 8839, line 17, you may have an unused credit amount that can be carried forward to future tax years. The unused nonrefundable credit can be carried forward for up to 5 years or until it is fully used, whichever occurs first. To calculate the carryforward amount, you must use the Nonrefundable Adoption Credit Carryforward Worksheet for Line 18. If you have any unused nonrefundable credit to carry forward to 2026, you should keep the worksheet because you will need it to figure your nonrefundable credit for that year.

If Form 8839, line 17, is smaller than line 16, you may have an unused nonrefundable credit to carry forward to the next 5 years or until used, whichever comes first.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

MAGI for the credit adds back income excluded because you live abroad or in a territory

For the 2026 Adoption Credit, the modified adjusted gross income (MAGI) used to determine whether the credit phases out is not simply the adjusted gross income shown on the taxpayer's return. Line 7 of Form 8839 requires that the amount from Form 1040, 1040-SR, or 1040-NR, line 11b, be increased by the total of certain amounts that were excluded from gross income. Specifically, MAGI must be increased by the exclusion of income from Puerto Rico, amounts from Form 2555 (lines 45 and 50, which relate to the foreign earned income exclusion), and the amount from Form 4563, line 15 (which relates to the exclusion of income for bona fide residents of American Samoa). Taxpayers who live abroad or in a U.S. territory and exclude income under these provisions must add those excluded amounts back to their AGI to arrive at MAGI for purposes of the Adoption Credit phase-out. For 2026, the credit begins to phase out at MAGI of $265,080 and is fully phased out at MAGI of $305,080.

Enter on line 7 the amount from Form 1040, 1040-SR, or 1040-NR, line 11b, increased by the total of any: • Exclusion of income from Puerto Rico; • Amounts from Form 2555, lines 45 and 50; and • Amount from Form 4563, line 15.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

Expenses paid before a domestic adoption is final wait a year

For a domestic adoption of a U.S. citizen or resident where the adoption has not yet become final by the end of the year, you cannot claim the credit in the year you paid the expenses. The credit for those pre-finalization expenses must be taken the year after the year of the payment. Only in the year the adoption actually becomes final may you claim the credit for expenses paid in that same year, and expenses paid in any later year are claimed in the year they are paid. This one-year delay applies only when the adoption has not yet been finalized; employer-paid expenses under a written adoption assistance program follow the year of payment regardless of finalization status. For 2026, the maximum credit per child is $17,670, subject to the MAGI phase-out starting at $265,080 and fully phased out at $305,080, with up to $5,120 of the credit refundable per eligible child.

Take the credit or exclusion as shown in the following table. Domestic Adoption IF you pay qualifying expenses in... THEN take the credit in... any year before the year the adoption becomes final* the year after the year of the payment. the year the adoption becomes final the year the adoption becomes final. any year after the year the adoption becomes final the year of the payment.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

The form that claims it, and the order its parts are filled in

The adoption credit and exclusion are reported on Form 8839, Qualified Adoption Expenses. The form is filled out in a specific order because employer-paid benefits reduce the credit. For purposes of calculating the adoption credit in Part II, qualified adoption expenses do not include amounts reimbursed by an employer under a written qualified adoption assistance program. For this reason, you must complete Form 8839, Part III, before you can figure the credit, if any, in Part II. Part III calculates the employer-provided adoption benefits exclusion, and the result determines what credit, if any, remains available in Part II. There is an exception for a child with special needs, where the full maximum credit may be available regardless of actual expenses paid. For 2026 the maximum credit is $17,670 per eligible child, with up to $5,120 refundable. The credit phases out for taxpayers with MAGI between $265,080 and $305,080.

For purposes of calculating the adoption credit in Part II, Qualified Adoption Expenses don’t include expenses reimbursed by an employer under a written qualified adoption assistance program (see Employer-Provided Adoption Benefits). For this reason, you must complete Form 8839, Part III, before you can figure the credit, if any, in Part II.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

What happens if the adoption falls through

If you paid qualified adoption expenses in an attempt to adopt a U.S. child and the adoption attempt fails, the IRS does not disallow the credit entirely. Instead, unsuccessful adoption expenses are treated the same way as expenses paid for an adoption that has not yet been finalized by the end of the year. This means the expenses are claimed in the year after the year they were paid, following the same timing rule that applies to pre-finalization domestic adoption expenses. For example, if you paid expenses in one tax year and the adoption was unsuccessful, those expenses would be claimed the following year. Any additional expenses paid in a later year would then be claimed the year after that, and may qualify in a subsequent tax year. For 2026, the maximum credit is $17,670, with up to $5,120 refundable, phased out for MAGI between $265,080 and $305,080.

Unsuccessful adoption. If you paid qualified adoption expenses in an attempt to adopt a U.S. child and the attempt was unsuccessful, treat those expenses in the same manner as expenses you paid for adoptions not final by the end of the year.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

Whether the credit is refundable, or only reduces what you owe

For the 2026 Adoption Credit, the credit is divided into two separate parts. A nonrefundable portion can reduce your federal income tax liability dollar for dollar, but only up to the amount of tax you owe - if your liability is less than the credit, the nonrefundable portion does not generate a refund. Any remaining credit is treated as a refundable portion, which the IRS will pay to you even if you owe no tax at all. The total of the nonrefundable and refundable portions combined cannot exceed $17,670 per eligible child in 2026, of which up to $5,120 may be taken as the refundable credit on Form 1040. The nonrefundable portion is claimed on Schedule 3 (Form 1040) and the refundable portion is claimed directly on Form 1040. The refundable credit portion is determined separately for each eligible child, so if more than one child is adopted in the same year, each child has its own $5,120 refundable limit and its own share of the $17,670 overall maximum.

Adoption credit. Use Form 8839, Part II, to figure the nonrefundable adoption credit you can take on Schedule 3 (Form 1040), line 6c, and the refundable adoption credit you can take on Form 1040, line 30.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

What counts as a qualified adoption expense

For 2026, the IRS allows a maximum adoption credit of $17,670 per eligible child. Qualified adoption expenses are those reasonable and necessary costs directly related to, and for the principal purpose of, the legal adoption of an eligible child. Qualifying costs include adoption fees, attorney fees, court costs, travel expenses (including meals and lodging while away from home), and re-adoption expenses for the adoption of a foreign child. Certain expenses do not qualify: amounts received under any state, local, or federal program; expenses that violate state or federal law; costs for a surrogate parenting arrangement; expenses for adopting a spouse's child; amounts reimbursed by an employer or otherwise; and expenses allowed as a credit or deduction under another provision of federal income tax law. The credit begins to phase out for taxpayers with modified adjusted gross income above $265,080 and is fully eliminated at $305,080. A portion of the credit, up to $5,120, may be refundable.

Qualified adoption expenses are reasonable and necessary expenses directly related to, and for the principal purpose of, the legal adoption of an eligible child.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

Adopting your stepchild does not qualify for the credit

Under IRS rules, qualified adoption expenses do not include expenses for the adoption of your spouse's child. This means that if you adopt a stepchild - a child already legally related to you through your marriage to their other parent - the costs you incur for that adoption (such as court costs, attorney fees, or travel) cannot be claimed toward the federal adoption credit or excluded from income as employer-provided adoption benefits. The credit and exclusion are intended for the adoption of children who are not already your spouse's child. For the 2026 tax year, the maximum credit is $17,670 per eligible child, with up to $5,120 refundable. The credit begins to phase out at a modified adjusted gross income of $265,080 and is fully eliminated at $305,080. However, regardless of income level or the amount of expenses paid, a stepchild adoption simply does not produce qualified adoption expenses eligible for the credit. Taxpayers should consult Form 8839 and its instructions to determine which adoptions qualify.

Qualified adoption expenses don’t include expenses: • For which you received funds under any state, local, or federal program; • That violate state or federal law; • For carrying out a surrogate parenting arrangement; • For the adoption of your spouse’s child; • Reimbursed by your employer or otherwise; or • Allowed as a credit or deduction under any other provision of federal income tax law.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

Who decides a child has special needs

For the 2026 Adoption Credit, a child's special-needs status is not something the adoptive parents or their doctor decides on their own. The determination must come from a state government (including the District of Columbia) or an Indian tribal government. That agency must formally determine three things: first, the child was a United States citizen or resident; second, the child cannot or should not be returned to the parents' home; and third, the child will not be adopted unless assistance is provided to the adoptive parents. When making that third finding, the state or tribal government may look at factors such as the child's age and ethnic background, whether the child is part of a sibling group or a minority group, and whether the child has a medical condition or a physical, mental, or emotional handicap. Importantly, the government must make the special-needs determination before the child is treated as a child with special needs for credit purposes. A child having a particular condition or factor on their own is not enough to establish that the determination was actually made.

The state or Indian tribal government must make a determination that a child has special needs before the child is considered to be a child with special needs. A child having a specific factor or condition isn't enough to establish that the state or Indian tribal government has made a determination of special needs.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

Whether the refundable part of the credit carries forward

For the 2026 Adoption Credit, the IRS allows a maximum credit of $17,670 per eligible child. Part of that credit - up to $5,120 - may be refundable, meaning it can reduce your tax liability below zero and produce a refund. Any portion of the credit that exceeds your tax liability for the year can be carried forward to future tax years, but the IRS rule is clear: a carryforward stays nonrefundable. You cannot convert unused nonrefundable credit into refundable credit in a later year. Once you have claimed the maximum refundable amount in the year the adoption becomes final, every dollar of credit you carry forward to the next five years (or until used, whichever comes first) can only offset tax you owe - it cannot generate a refund. This means the refundable portion is essentially a one-year benefit tied to the year of the finalization, while the nonrefundable portion provides the multi-year carryforward. Taxpayers with little or no tax liability in future years may not be able to use the carried-forward amount at all.

Any credit carryforward can only be a nonrefundable credit. Unused nonrefundable credit can’t be turned into a refundable credit in a future year.
2025 Instructions for Form 8839, Qualified Adoption Expenses (IRS)

How each figure was verified

Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.

Rev. Proc. 2025-32 (IRS)

Maximum credit: the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $17,670.
Refundable credit: the amount used in § 23(a)(4) to determine the amount of the credit under § 23 that may be refundable is $5,120.
Phase-out threshold: The available adoption credit begins to phase out under § 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $265,080
Fully phased out: under § 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $265,080 and is completely phased out for taxpayers with modified adjusted gross income of $305,080 or more.

The quoted passage, highlighted on page 13 of Rev. Proc. 2025-32. — Page 13 of the document, as it is published. The highlighted sentence is the one quoted above. It is a rendering of that page, not the document itself - the link above goes to the document.

Fetched 2026-08-27T13:18:36.758Z
Verified 2026-09-02
Stored text sha256 208b7933feb97c60e786d17f8cf3d07ba95526429ab16cf0bc809d455bc8ca66

By year

Every published year

11 years on record, 2026 back to 2016. Each year links to its own page, its own document and its own verification date.

Maximum credit

Refundable credit

Phase-out threshold

Fully phased out

Oldest year at the left. Every line spans the same run of years, with a tick under each year it has a figure for, so a line that starts late is a column the law added late. The vertical axis is scaled to the values plotted rather than to zero, so a line shows the shape of the change and not the size of the amount. The table states every value.

Year	Maximum credit	Refundable credit	Phase-out threshold	Fully phased out
2026	$17,670	$5,120	$265,080	$305,080
2025	$17,280	$5,000	$259,190	$299,190
2024	$16,810	-¹	$252,150	$292,150
2023	$15,950	-¹	$239,230	$279,230
2022	$14,890	-¹	$223,410	$263,410
2021	$14,440	-¹	$216,660	$256,660
2020	$14,300	-¹	$214,520	$254,520
2019	$14,080	-¹	$211,160	$251,160
2018	$13,810	-¹	$207,140	$247,140
2017	$13,570	-¹	$203,540	$243,540
2016	$13,460	-¹	$201,920	$241,920

the refundable portion is an addition to § 23 made by the One, Big, Beautiful Bill Act, effective for taxable years beginning after 2024. Before then the credit was nonrefundable in full

Download every year as a csv. One row per published figure, each carrying the document it was read from and the date it was checked.