Washington · Employer-Provided Childcare Credit
Employer-Provided Childcare Credit in Washington (2026)
Employers can claim 25% of costs for employee childcare facilities and 10% of childcare resource/referral costs, up to $150,000. Washington has no state income tax, so a Washington filer's combined marginal rate on the next dollar at $82,228 of income is about 22% (22% federal).
2026 savings example for Washington
Planning estimate for a single filer earning $82,228 (Washington 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; WA tax uses the state brackets in LevyIO's dataset.
Estimated total savings
$5,000
Federal savings
$5,000
$9,260 → $4,260 · 22% bracket
WA state savings
$0
No state income tax
Combined marginal rate
22%
Credits do not depend on the bracket
Statutory maximum for this item in LevyIO's dataset: $150,000.
Federal × Washington marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The WA column is the state marginal rate at the midpoint of each range (Washington has no income tax). A credit saves its face value regardless of bracket.
| Federal bracket | Gross income (single) | WA marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 0% | 10% | $1,000 |
| 12% | $28,500 - $66,500 | 0% | 12% | $1,000 |
| 22% | $66,500 - $121,800 | 0% | 22% | $1,000 |
| 24% | $121,800 - $217,875 | 0% | 24% | $1,000 |
| 32% | $217,875 - $272,325 | 0% | 32% | $1,000 |
| 35% | $272,325 - $656,700 | 0% | 35% | $1,000 |
| 37% | Over $656,700 | 0% | 37% | $1,000 |
Eligibility & forms
Employers who provide childcare facilities or contract with childcare providers
- 25% of qualified childcare facility expenses
- 10% of qualified childcare resource and referral expenses
- Maximum credit $150,000 per year
Federal forms: Form 8882, Form 3800
Washington filing notes
No wage income tax is a major benefit. Washington capital gains tax excludes many assets including real estate and retirement accounts, but high-gain liquidity events need separate review. High sales taxes add up. Compare to Oregon, which has no sales tax but does tax wage income.
Common mistakes: Not recapturing credit if facility use changes; Forgetting to reduce deduction by credit amount; Missing the resource and referral component.
Frequently asked questions
How much can the Employer-Provided Childcare Credit save a Washington taxpayer in 2026?
Credits reduce tax dollar-for-dollar. In LevyIO's example, a single filer with $82,228 of income (the Washington median household income in our state dataset) and a $5,000 credit would cut 2026 federal tax from $9,260 to $4,260, a $5,000 saving. Whether Washington offers a matching state credit depends on the WA return, so the estimate counts federal savings only.
What is the Washington income tax rate for 2026?
Washington has no state income tax. The WA standard deduction in LevyIO's dataset is $0 single / $0 married. No wage income tax. Washington capital gains tax uses a 7% tier and an additional 2.9% tier above $1M for tax year 2025 and later. Very high combined sales tax (9.29%). Estate tax.
Who qualifies for the Employer-Provided Childcare Credit in Washington?
Employers who provide childcare facilities or contract with childcare providers. The federal rules are the same in every state; the requirements are: 25% of qualified childcare facility expenses; 10% of qualified childcare resource and referral expenses; Maximum credit $150,000 per year. Washington filers should confirm on the WA return whether the state follows the federal treatment.
Which forms do I file to claim the Employer-Provided Childcare Credit?
Federal: Form 8882, Form 3800. Washington has no individual income tax return for wage income, so there is no state form to file for this item. Common mistakes: Not recapturing credit if facility use changes; Forgetting to reduce deduction by credit amount; Missing the resource and referral component.
Employer-Provided Childcare Credit in other states
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.