Dependent Care FSA Calculator (2026)
See how much you'll save in federal, Social Security/Medicare, and state taxes by paying for childcare through a Dependent Care FSA.
What Is a Dependent Care FSA?
A Dependent Care FSA (DCFSA) is an employer benefit that lets you set aside up to $7,500 per year, pre-tax, to pay for eligible childcare so you (and your spouse) can work. Because the money comes out before income and payroll taxes, every dollar you run through the account is a dollar that isn't taxed — that's where the savings come from.
Eligible expenses include daycare, preschool, before/after-school care, day camps, and a nanny's wages (if paid legally) for children under 13.
How the Savings Add Up
Your savings equal your contribution multiplied by your combined marginal tax rate — federal income tax + FICA (7.65%) + state income tax:
| Federal Bracket | + FICA | + State (~5%) | Savings on $7,500 |
|---|---|---|---|
| 12% | 7.65% | 5% | ~$1,849 |
| 22% | 7.65% | 5% | ~$2,599 |
| 24% | 7.65% | 5% | ~$2,749 |
| 32% | 7.65% | 5% | ~$3,349 |
Illustrative; your state rate and bracket may differ. Use the calculator above for your numbers.
DCFSA vs. the Childcare Tax Credit
You can use both, but not on the same dollars. FSA dollars count against the credit caps ($3,000 for one child, $6,000 for two or more), so a full $7,500 FSA leaves no credit. Compare both for your income — at lower incomes the 2026 credit (up to 50%) can beat the FSA — and put any expenses not paid through the FSA toward the Child & Dependent Care Credit. Our FSA vs. credit guide shows which order wins for your bracket. To see the credit for your own income, capped at your tax bill, use the child care tax credit calculator.
Frequently Asked Questions
How much can I save with a Dependent Care FSA?
Your savings equal your contribution times your combined tax rate. Contributing the $7,500 maximum (2026) typically saves $1,474–$2,374 before state tax at the 12%–24% brackets — federal income tax at your bracket, FICA (7.65%), and state income tax. Higher brackets save more.
How much can I contribute in 2026?
Up to $7,500 per household ($3,750 if married filing separately), raised from $5,000 by P.L. 119-21. It's a household cap, so two working spouses still share one $7,500 limit. Elect your amount during open enrollment.
Can I use a DCFSA and the childcare tax credit together?
Yes, but not on the same expenses. FSA dollars reduce the expenses eligible for the credit (caps $3,000 or $6,000), so a full $7,500 FSA leaves no credit.
What happens to unused funds?
DCFSAs are use-it-or-lose-it. Unused money at the end of the plan year (plus any grace period) is generally forfeited, so elect an amount you're confident you'll spend.
See Your Full Childcare Cost & Savings
Enter your zip code to combine local childcare prices with your FSA and tax-credit savings in one estimate.
Open the Cost Calculator