Massachusetts · Child & Dependent Care Credit
Child & Dependent Care Credit in Massachusetts (2026)
Credit for childcare expenses so you can work (20-50% in 2026 of up to $6,000). Massachusetts has a progressive income tax with a top rate of 9%, so a Massachusetts filer's combined marginal rate on the next dollar at $96,505 of income is about 27% (22% federal + 5% MA).
2026 savings example for Massachusetts
Planning estimate for a single filer earning $96,505 (Massachusetts median household income in LevyIO's state dataset) who claims a $5,000 credit. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; MA tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$5,000
Federal savings
$5,000
$12,401 → $7,401 · 22% bracket
MA state savings
$0
Federal credit only; check for a state credit
Combined marginal rate
27%
Credits do not depend on the bracket
Statutory maximum for this item in LevyIO's dataset: $6,000.
Federal × Massachusetts marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The MA column is the state marginal rate at the midpoint of each range. A credit saves its face value regardless of bracket.
| Federal bracket | Gross income (single) | MA marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 5% | 15% | $1,000 |
| 12% | $28,500 - $66,500 | 5% | 17% | $1,000 |
| 22% | $66,500 - $121,800 | 5% | 27% | $1,000 |
| 24% | $121,800 - $217,875 | 5% | 29% | $1,000 |
| 32% | $217,875 - $272,325 | 5% | 37% | $1,000 |
| 35% | $272,325 - $656,700 | 5% | 40% | $1,000 |
| 37% | Over $656,700 | 5% | 42% | $1,000 |
Eligibility & forms
Working parents paying for childcare
- Both spouses must work
- $3K for 1 child/$6K for 2+
- Child under 13
Federal forms: Form 2441
Massachusetts filing notes
Apply the Massachusetts personal exemption before the 5% ordinary-rate estimate, and plan for the 4% surtax if taxable income approaches $1,107,750 in 2026. Do not assume all income is taxed at 9%; only the amount above the surtax threshold gets the extra 4%. The low $2M estate tax exemption affects more families.
Common mistakes: Using wrong provider EIN; Not reporting provider info.
Frequently asked questions
How much can the Child & Dependent Care Credit save a Massachusetts taxpayer in 2026?
Credits reduce tax dollar-for-dollar. In LevyIO's example, a single filer with $96,505 of income (the Massachusetts median household income in our state dataset) and a $5,000 credit would cut 2026 federal tax from $12,401 to $7,401, a $5,000 saving. Whether Massachusetts offers a matching state credit depends on the MA return, so the estimate counts federal savings only.
What is the Massachusetts income tax rate for 2026?
Massachusetts has a progressive income tax with a top rate of 9%. The MA standard deduction in LevyIO's dataset is $0 single / $0 married. Flat 5% ordinary rate after personal exemptions, plus 4% surtax above $1,107,750 in 2026. 8.5% on short-term gains. Estate tax ($2M exemption).
Who qualifies for the Child & Dependent Care Credit in Massachusetts?
Working parents paying for childcare. The federal rules are the same in every state; the requirements are: Both spouses must work; $3K for 1 child/$6K for 2+; Child under 13. Massachusetts filers should confirm on the MA return whether the state follows the federal treatment.
Which forms do I file to claim the Child & Dependent Care Credit?
Federal: Form 2441. Massachusetts: check the Massachusetts Department of Revenue instructions for the matching state schedule. Common mistakes: Using wrong provider EIN; Not reporting provider info.
Child & Dependent Care Credit in other states
More Massachusetts deductions and credits
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.