Complete Guide to State Child and Dependent Care Tax Credits

Child and dependent care tax credits are essential for families juggling the costs of child care. While the federal government provides a framework for these credits, many states have implemented their own versions to offer additional support.

Here, we outline the child and dependent care tax credits available in each state, including eligibility criteria, credit amounts, and specific limitations as of September 2024.

Overview of Federal Child and Dependent Care Tax Credit

Before looking at state-specific information, it's essential to understand the federal Child and Dependent Care Tax Credit (CDCTC). This credit, often referred to simply as the Child Tax Care Credit or CTC, is available to families who incur expenses for the care of children under the age of 13 or for qualifying disabled dependents.

Maximum Credit: Families can claim up to $3,000 for one qualifying individual or up to $6,000 for two or more.
Credit Rate: The credit rate ranges from 20% to 35% of qualifying expenses, depending on the taxpayer's income.
Eligibility: Parents must be working or looking for work to qualify for this credit. There are provisions for disabled and full-time student spouses.

State-by-State Breakdown

Alabama
Alabama does not have a state child tax credit, but families may claim the federal child tax credit on their state return.

Alaska
Alaska does not provide a child tax credit, but the state offers the Permanent Fund Dividend (PFD), which provides an annual payout to eligible residents, including children.

Arizona
Arizona does not offer a state child tax credit. However, families can claim the federal child tax credit and may also qualify for other benefits for dependents.

Arkansas
Arkansas does not have a state-specific child tax credit, but eligible residents may claim the federal child tax credit on their state return.

California
California offers a California Child Tax Credit (CTC)for low-income families. The CTC is worth up to $1,000 per child for those who meet the eligibility requirements.

Colorado
Colorado offers a state child tax credit for low-income families. The credit is a percentage of the federal child tax credit and can be claimed by those who qualify.

Connecticut
Connecticut has a Child Tax Rebate that provides up to $250 per child for eligible families. This is separate from the federal child tax credit.

Delaware
Delaware offers a child tax credit for families with children under age 17. The credit provides a maximum of $200 per qualifying child.

Florida
Florida does not have a state income tax and, therefore, does not offer a state child tax credit, but families can claim the federal child tax credit.

Georgia
Georgia provides a Child Tax Credit for qualifying families with children under the age of 18. The maximum credit is $200 per child.

Hawaii
Hawaii offers a State Dependent Care Tax Credit that can apply to childcare expenses for dependent children. The credit is income-based and varies according to the taxpayer’s income level.

Idaho
Idaho provides a Child Tax Credit that can be claimed by families with qualifying children or dependents. The credit ranges from $0 to $205 per dependent child, depending on the taxpayer’s income.

Illinois
Illinois offers a Property Tax Credit, but not a direct child tax credit. However, it does allow for aStandard Exemption that can reduce taxable income for families with children.

Indiana
Indiana provides a