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Patient tool · HSA & FSA

Dependent care FSA calculator

Compare a dependent care FSA (up to $7,500 in 2026) with the child care tax credit.

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Uses 2026 figures
$

Daycare, preschool, before/after-school care and day camp for children under 13.

$

Your top federal bracket. Most households earning $50k–$200k are in the 12%, 22% or 24% bracket.

%

Enter 0 if your state has no income tax (for example Texas, Florida or Washington).

Your results will appear here.
Adjust the numbers, then press Calculate.

Assumptions
  • 2026 dependent care FSA limit: $7,500 per household ($3,750 if married filing separately), raised from $5,000 by P.L. 119-21.
  • Credit: 50% rate phasing to 35% above $15,000 AGI, then to 20% above $75,000 ($150,000 joint), on up to $3,000 (one) or $6,000 (two or more) of costs, reduced by FSA dollars.
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Child care is one of the biggest costs for working families. Starting in 2026, a dependent care Flexible Spending Account (FSA) lets you pay up to $7,500 a year in care costs with pre-tax money, up from $5,000. The child and dependent care tax credit also got more generous for lower and middle incomes. This calculator compares the two.

How it works

The FSA saves you your federal tax rate, your state tax rate and 7.65% in payroll taxes on every dollar you put in, up to $7,500 (or your actual costs, if lower).

The credit is a percentage of up to $3,000 in care costs for one child or $6,000 for two or more. For 2026 the rate starts at 50% for incomes up to $15,000, steps down to 35%, then steps down again to 20% for higher incomes. FSA dollars reduce the costs that count toward the credit.

The calculator works out both approaches and shows the one that saves more.

Example

A married couple earns $200,000, pays $10,000 a year for two children's care, and is in the 24% bracket with 5% state tax.

  • FSA: $7,500 × (24% + 5% + 7.65%) = about $2,749 in savings.
  • Credit only: their credit rate is about 22%, on $6,000 of costs = $1,320.

The FSA wins. For a single parent earning $40,000 with $3,000 in costs, the credit (about 37%) saves more than the FSA.

Before you enroll

Enrollment usually happens once a year. Your employer's plan may also set a lower limit, so check your benefits guide.

FAQ

Frequently asked questions

What counts as dependent care?

Care that lets you work: daycare, preschool, before- and after-school programs and day camps for children under 13, plus care for a spouse or dependent adult who can't care for themselves. Overnight camps and private school tuition don't count.

Can I use both the FSA and the credit?

Yes, but not on the same dollars. FSA money reduces the costs that can qualify for the credit. With two or more children and costs above $7,500, some of the credit can still apply.

Is the limit per person?

No. The $7,500 limit is per household, so if both parents have access to a dependent care FSA, your combined elections can't go above it.

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