Dependent Care Savings Calculator

Calculator

Enter expenses, contributions, and tax rates to estimate potential savings from pre-tax dependent care benefits.

Annual eligible expenses

Total expected dependent care cost for the year.

Employee annual pre-tax contribution

Your planned salary deduction for the year.

Employer contribution (optional)

Any employer subsidy that offsets your expenses.

Federal marginal tax rate (%)

Your top federal bracket estimate.

State tax rate (%)

Use 0 if not applicable.

Local tax rate (%)

City or municipal income tax, if any.

Payroll tax rate (%)

Commonly includes social insurance taxes.

Pay periods per year

Used to estimate your per-paycheck deduction.

Currency

Formatting only. It does not change calculations.

Decimals

Choose rounding for displayed results.

Reset

Example data table

Scenario	Expenses	Employee pre-tax	Employer	Total tax rate	Estimated tax savings	Effective out-of-pocket
Typical	$6,000	$5,000	$0	35.65%	$1,782.50	$4,217.50
With employer help	$6,000	$4,000	$1,000	30.00%	$1,200.00	$3,800.00
Lower taxes	$4,800	$3,000	$0	20.00%	$600.00	$4,200.00

Formula used

Total tax rate = (Federal + State + Local + Payroll) / 100

Employee pre-tax used = min(Employee contribution, Expenses − Employer used)

Estimated tax savings = Employee pre-tax used × Total tax rate

Effective out-of-pocket = (Employee pre-tax used × (1 − Total tax rate)) + After-tax paid

How to use this calculator

Enter your annual dependent care expenses for the year.
Enter your planned annual pre-tax contribution and any employer subsidy.
Fill in your estimated tax rates and payroll tax rate.
Select your pay frequency to estimate per-paycheck deductions.
Press Submit to view savings above the form.
Use Download CSV or Download PDF to export results.

FAQs

1) What does this calculator estimate?

It estimates how much tax you may save when paying eligible dependent care expenses using pre-tax payroll deductions, plus any employer contributions.

2) Which tax rates should I enter?

Use your marginal rates: the percentage applied to the next dollar of income. If unsure, use a conservative estimate and compare multiple scenarios.

3) Does payroll tax always apply to savings?

Not always. Some plans may reduce certain payroll taxes, while others might not. Enter the payroll rate you expect to be affected for your situation.

4) What if my expenses are lower than my contribution?

This estimate assumes savings only on the amount used against eligible expenses. If you contribute more than you spend, unused amounts may reduce benefits.

5) How does an employer contribution change results?

Employer dollars reduce the amount you personally need to fund. The calculator applies employer funds first, then computes tax savings on your remaining pre-tax amount.

6) Is this the same as a childcare tax credit?

No. Credits and pre-tax benefits can interact in complex ways. Use this as a planning tool and confirm details with your benefits team or tax advisor.

7) Can both spouses use a pre-tax plan?

Rules vary by country and employer plan. Often, combined household limits apply. Coordinate contributions to avoid overfunding and to maximize total household benefit.

8) How accurate are the results?

Results are simplified estimates using your inputs. Actual savings depend on eligibility, plan rules, and filing details. Treat outputs as directional guidance, not advice.