Child and Dependent Care Credit 2026
Current year
For 2026, the Child and Dependent Care Credit is 50% (Maximum rate), $3,000 (Expense limit, one person) and $6,000 (Expense limit, two or more people).
Effective 2026-01-01Source: Publication 505 (2026), Tax Withholding and Estimated Tax (IRS)Verified 2026-08-29
Compared with 2025
| Item | 2025 | 2026 | Change |
|---|---|---|---|
| Maximum rate | 35% | 50% | +15% (+42.9%) |
| Expense limit, one person | $3,000 | $3,000 | +$0 (+0.0%) |
| Expense limit, two or more people | $6,000 | $6,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who pay for the care of an eligible child or dependent and claim the Child and Dependent Care Credit on their federal income tax return.
What changed this year, and why
For 2026, the maximum credit rate for the Child and Dependent Care Credit increases from 35% to 50%. The expense limits remain $3,000 for one qualifying person and $6,000 for two or more qualifying persons.
Common questions
- What is the maximum credit rate for 2026?
- The maximum credit rate is 50% of qualifying expenses for 2026, up from 35% in 2025.
- How much can I count in qualifying expenses?
- You may count up to $3,000 of qualifying expenses for one person, or up to $6,000 for two or more persons.
Every amount on this page is a published figure rather than yours. The Dependent care expense headroom takes the number you enter and works it out against them, showing which published figure it used.
The credit cannot exceed what you earned
Even if you paid substantial work-related expenses, the amount you can use to calculate the credit is capped by your earned income for the year. If you are single at the end of the year, your credit base cannot exceed what you personally earned. If you are married at the end of the year, the limit is the smaller of your earned income or your spouse's earned income for the year. Importantly, when applying this married couple rule, you must use your spouse's earned income for the entire year, even if you were married for only part of the year. This prevents married couples from using more than the lower earner actually produced to figure the credit. The earned income considered for this purpose is the same definition used for the separate "You Must Have Earned Income" test described elsewhere in the publication.
Earned Income Limit The amount of work-related expenses you use to figure your credit can't be more than: 1. Your earned income for the year if you are single at the end of the year, or 2. The smaller of your or your spouse's earned income for the year if you are married at the end of the year.
Publication 503 (2025), Child and Dependent Care Expenses (IRS)
The exception for a student or disabled spouse
When one spouse has little or no earned income, that lower income could shrink or eliminate the credit because of the earned-income limit. The publication provides a special rule to prevent this: a spouse who is a full-time student, or who is physically or mentally unable to care for themselves, is treated as having earned income for each month they meet that condition. To qualify, the spouse must also have lived with the taxpayer for more than half the year. On a joint return, the rule can also apply to the taxpayer. This deemed-earned-income treatment allows the couple to use a higher expense limit when figuring the credit, preserving the benefit even though one spouse did not work during the year. Without this rule, a working spouse with a full-time-student or disabled spouse could lose the credit entirely because the lower-earning spouse's actual earned income would be zero.
Rule for student-spouse or spouse not able to care for self. Your spouse is treated as having earned income for any month that they are: 1. A full-time student, or 2. Physically or mentally not able to care for themselves. (Your spouse must also live with you for more than half the year.)
Publication 503 (2025), Child and Dependent Care Expenses (IRS)
Married couples generally must file jointly
The child and dependent care credit is generally available only to taxpayers who file a joint return when they are married. If you are married at the end of the year, your filing status must typically be married filing jointly to claim the credit. The acceptable filing statuses for taking the credit are single, head of household, or qualifying surviving spouse. Married couples who choose married filing separately are, as a rule, ineligible. An exception exists for certain married taxpayers who lived apart from their spouse and meet specific conditions; those exceptions are described under the filing-status section of the publication. The joint-return requirement ensures that both spouses' income is taken into account when the credit is computed, which matters because the credit's expense base is limited to the lower earned income of the two spouses.
5. Joint Return Test. Your filing status may be single, head of household, or qualifying surviving spouse. If you are married, you must file a joint return, unless an exception applies to you. See What’s Your Filing Sta- tus, later.
Publication 503 (2025), Child and Dependent Care Expenses (IRS)
You must name the provider, or show due diligence
Every care provider - whether an individual, a daycare center, or another organization - must be identified on the taxpayer's return using Form 2441, Part I. The information required is the provider's name, address, and taxpayer identification number. For an individual provider, that number is a social security number or individual taxpayer identification number; for an organization, it is the employer identification number. Tax-exempt organizations such as churches or schools are an exception: instead of a number, the taxpayer writes "Tax-Exempt." If the taxpayer cannot supply complete or correct information, the credit may be disallowed unless the taxpayer can demonstrate due diligence in trying to obtain it. Due diligence is shown by keeping records such as a completed Form W-10 or another acceptable source of the provider's details. If the provider refuses to provide the information, the taxpayer reports whatever is known, attaches a statement explaining the refusal, and that statement itself serves as evidence of due diligence.
Care Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. Use Form 2441, Part I, to show the information.
Publication 503 (2025), Child and Dependent Care Expenses (IRS)
Employer benefits shrink the expense limit
If your employer provides dependent care benefits that you exclude or deduct from your income, the amount excluded or deducted reduces the dollar limit you can use to figure the credit. The normal dollar limits are $3,000 for one qualifying person and $6,000 for two or more qualifying persons. Any tax-free or deductible benefits received under a qualified employer plan must be subtracted from whichever limit applies to you. The reduced dollar limit is computed on Form 2441, Part III. This means employer-provided benefits and the credit share a single ceiling: you cannot use the same dollars both to receive a tax-free benefit and to generate a credit. The dollar limit is reduced dollar for dollar by the amount of benefits excluded or deducted, so the remaining expense base for the credit may be smaller than the full limit, or may even be reduced to zero if the excluded benefits equal or exceed the applicable limit.
Reduced Dollar Limit If you received dependent care benefits that you exclude or deduct from your income, you must subtract that amount from the dollar limit that applies to you. Your re- duced dollar limit is figured on Form 2441, Part III. See Dependent Care Benefits, earlier, for information on ex- cluding or deducting these benefits.
Publication 503 (2025), Child and Dependent Care 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.
Publication 505 (2026), Tax Withholding and Estimated Tax (IRS)
- Maximum rate
Changes to the child and dependent care credit. For 2026, recent legislation has en- hanced the credit for qualifying child and de- pendent care expenses paid for the care of an eligible child. The credit amount remains $3,000 ($6,000 for two or more qualifying children) but the maximum credit rate has increased from 35% to 50% of your qualifying expenses.
- Expense limit, one person
Changes to the child and dependent care credit. For 2026, recent legislation has en- hanced the credit for qualifying child and de- pendent care expenses paid for the care of an eligible child. The credit amount remains $3,000 ($6,000 for two or more qualifying children) but the maximum credit rate has increased from 35% to 50% of your qualifying expenses.
- Expense limit, two or more people
Changes to the child and dependent care credit. For 2026, recent legislation has en- hanced the credit for qualifying child and de- pendent care expenses paid for the care of an eligible child. The credit amount remains $3,000 ($6,000 for two or more qualifying children) but the maximum credit rate has increased from 35% to 50% of your qualifying expenses.
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.