Dependent Care FSA Calculator

Enter your yearly childcare cost, household income and tax bracket. The calculator shows the tax saved with a dependent care FSA, the Child and Dependent Care Credit on its own, and the two combined.

Your numbers

Childcare cost per year ($)

Children under 13 in care

Household adjusted gross income ($)

Federal tax bracket (%)

State income tax rate (%)

FSA limit for your plan ($)

Check your employer's plan for the current year

Result

Best tax saving per year

$2,599

FSA only	$2,599
Tax credit only (35% rate)	$1,050
FSA plus remaining credit	$2,599
Childcare cost after best saving	$12,401

On these numbers using the FSA gives the bigger saving.

Money put into the FSA reduces the expenses you can claim for the credit. From 2026 the FSA limit is $7,500 and the credit rate is 20–50% (rates assume married filing jointly). Your employer's plan may set a lower FSA limit.

Is going back to work worth it? Run the full comparison

How a dependent care FSA saves money

You set aside pre-tax pay through your employer to pay for childcare. That money skips federal income tax, Social Security, Medicare and usually state tax, so the saving is your full marginal rate.

How the credit works

The Child and Dependent Care Credit is a share of up to $3,000 of costs for one child or $6,000 for two or more. From 2026 the rate starts at 50% and falls to 35% by about $45,000 of income, stays there until $150,000 for joint filers ($75,000 others), then falls to a 20% floor.

Using both

You can't claim the same dollars twice. With two or more children, costs above the FSA amount can still count toward the credit, up to the $6,000 cap.

Frequently asked questions

Is a dependent care FSA better than the tax credit?

For most middle- and higher-income families, yes, because the FSA saves at your full marginal rate plus payroll tax, while the credit is 35% or less of a capped amount for most working families.

What is the dependent care FSA limit?

From 2026 it is $7,500 per household a year ($3,750 if married filing separately), up from $5,000. Your employer's plan may still use a lower limit.

Can I use a dependent care FSA and the childcare credit?

Yes, but not on the same expenses. FSA money reduces the costs you can claim for the credit.

Next steps

Sources

Results are estimates for planning. Rates change each tax year, so check the official source before you rely on them.