Is working worth it after childcare?
Most parents compare their salary to the daycare bill — and get the answer wrong. This works out what your family actually keeps: 2026 marginal taxes, the $7,500 Dependent Care FSA and its dance with the childcare credit, your 401(k) match, health insurance, commuting — and what stepping out costs you over 10 years.
- Real 2026 US tax modeling, not rough percentages
- FSA vs. credit chooser — we run both
- Full-time / part-time / stay-home compared
How the math works
What “kept” means
Kept = second salary − extra taxes caused by that salary − childcare (after FSA reimbursement) − commuting − work costs + employer 401(k) match + HSA seed + the health-premium savings of staying employed. Your 401(k) contributions and HSA seed count as kept — they're your wealth, just saved, not spent.
Taxes: the with/without method
Instead of applying a flat “tax rate,” the US model computes your household's whole tax bill with the second income and without it, and takes the difference. That captures your true marginal bracket, FICA (6.2% to the $184,500 wage base + 1.45% Medicare), and state tax. For married couples filing jointly, your dollars stack on top of your partner's — which is why we ask for their income.
FSA + childcare credit ordering (2026)
The 2026 Dependent Care FSA limit is $7,500 — excluded from income and FICA tax. But every FSA dollar reduces the Child and Dependent Care Credit's expense limit ($3,000 / $6,000) by $1. The 2026 credit pays 50% at low incomes, phasing to 35% then a 20% floor. The calculator runs your numbers both ways and recommends the winner.
What we approximate
- State tax: a rough middle-income marginal rate per state — not your actual bracket.
- Partner income treated as wages; no itemized deductions, no local taxes, no AMT.
- The 10-year view holds 2026 brackets flat and assumes paid care drops to $0 while you're out.
- UK / Canada / Australia models are simplified individual-level estimates, clearly labeled.
Privacy
Your data never leaves your device; the only network requests on this page are the site's own analytics (Google Analytics and a Cloudflare beacon), which load when the page opens and never see your inputs. The share link encodes your inputs in the URL itself.
Common questions
Should I compare my salary directly to the daycare bill?
No. That ignores marginal taxes, the FSA, the childcare credit, the 401(k) match, health insurance and commuting — often $10,000+ a year in either direction. Run the full picture above instead.
Should I use the Dependent Care FSA or the Child and Dependent Care Credit?
Often both: fund the FSA first (it also skips FICA tax), then claim the credit on remaining expenses up to the cap. But if your FSA covers the whole cap, there's no credit left. The verdict's “ways to keep more” box runs both for your income and picks the winner.
Why does the 10-year view matter if I only need daycare for 3 years?
Because raises compound, 401(k) matches compound, and re-entering usually means a lower salary. A 3% annual penalty over 4 years out is roughly a 12% pay cut on return — the chart makes that visible.
What counts as “kept”?
Cash left after taxes, childcare and work costs, plus employer benefits that are really your money: the 401(k) match, HSA seed, and health-premium savings. Your own 401(k) contributions count too — saved, not spent.
Is this tax advice?
No. Every figure is a planning estimate using 2026 rules reviewed 2026-10-18. Verify against current IRS and state publications or a tax professional before acting.
Which countries are supported?
The US gets the full engine (federal, FICA, state approximation, FSA, both credits). The UK, Canada and Australia use simplified models with local bands and childcare support — clearly labeled as estimates.