The 2026 Child Tax Credit is $2,200 per qualifying child under 17. If the credit is more than your federal income tax, up to $1,700 per child can be refunded as the Additional Child Tax Credit. The full credit is available up to $200,000 of income, or $400,000 on a joint return (IRS). A married couple with two children earning $120,000 gets the full $4,400, which cuts their federal income tax from $10,040 to $5,640. Because it is federal, the credit is the same wherever you move.
2026 Child Tax Credit at a glance
| Feature | 2026 |
|---|---|
| Credit per qualifying child (under 17) | $2,200 |
| Refundable portion (ACTC), per child | up to $1,700 |
| ACTC formula | 15% of earned income over $2,500 |
| Phase-out starts, married filing jointly | $400,000 modified AGI |
| Phase-out starts, all other filers | $200,000 modified AGI |
| Phase-out rate | $50 per $1,000 (or part of $1,000) over the threshold |
Sources: 2026 Schedule 8812 (draft), which multiplies qualifying children by $2,200 and caps the ACTC at $1,700 per child, and P.L. 119-21 §70104 (Congressional Research Service summary).
How the credit changes your 2026 tax
MoveMath’s 2026 engine, for a household in Texas, which has no state income tax, so only federal tax shows. “Federal income tax” is after the credit. “Total taxes” adds Social Security and Medicare.
Single parent (head of household), one child, one earner:
| Income | Credit used against tax | Federal income tax | Total taxes | Take-home |
|---|---|---|---|---|
| $30,000 | $585 | $0 | $2,295 | $27,705 |
| $50,000 | $2,200 | $548 | $4,373 | $45,627 |
| $75,000 | $2,200 | $3,548 | $9,286 | $65,715 |
| $100,000 | $2,200 | $7,388 | $15,038 | $84,962 |
| $200,000 | $2,200 | $30,791 | $45,130 | $154,870 |
| $210,000 | $1,700 | $33,691 | $48,265 | $161,735 |
At $30,000, the parent’s tax before the credit is only $585, so that is all the credit can offset. The other $1,615 is refundable at filing, because the ACTC limit is the smaller of $1,700 or 15% × ($30,000 − $2,500) = $4,125.
At $210,000, income is $10,000 over the $200,000 threshold: 10 × $50 = $500 less, so the credit is $1,700.
Married filing jointly, two children, two earners (60/40 split):
| Income | Credit used against tax | Federal income tax | Total taxes | Take-home |
|---|---|---|---|---|
| $50,000 | $1,780 | $0 | $3,825 | $46,175 |
| $80,000 | $4,400 | $840 | $6,960 | $73,040 |
| $120,000 | $4,400 | $5,640 | $14,820 | $105,180 |
| $200,000 | $4,400 | $21,940 | $37,240 | $162,760 |
| $400,000 | $4,400 | $69,068 | $97,577 | $302,423 |
| $410,000 | $3,900 | $71,968 | $100,960 | $309,040 |
| $450,000 | $1,900 | $84,708 | $115,632 | $334,368 |
At $50,000 the couple’s $1,780 of tax absorbs part of the credit, and the remaining $2,620 can be refunded. At $410,000 the credit is $4,400 − (10 × $50) = $3,900. At $450,000 it is $4,400 − (50 × $50) = $1,900. The phase-out applies to the family’s total credit, not to each child. Above $250,000 for a couple, the 0.9% Additional Medicare Tax is also in the total.
The refundable part (ACTC)
ACTC = smaller of (unused credit, $1,700 × children, 15% × (earned income − $2,500))
For the $30,000 single parent above: unused credit $1,615; cap $1,700; 15% of $27,500 is $4,125. The refund is $1,615.
MoveMath shows the credit that reduces tax, and flags any refundable amount separately. A refund arrives when you file, not in your paychecks, so it is not counted in monthly take-home. The IRS can’t issue refunds on returns claiming the ACTC before mid-February.
How it works with childcare costs
The Child and Dependent Care Credit is separate, and you can claim both. For 2026 it is 20% to 50% of up to $3,000 of work-related care costs for one child, or $6,000 for two or more. The rate starts at 50% and falls to 35% by about $45,000 of AGI. It then falls again above $75,000 ($150,000 for a joint return), to 20% at higher incomes (26 U.S.C. § 21).
Example: the $120,000 married couple with one child in daycare costing $15,000 a year.
- Child and Dependent Care Credit: 35% × $3,000 = $1,050
- Child Tax Credit: $2,200
- Together: $3,250 off their federal income tax
If an employer dependent care FSA covers some of the cost (up to $7,500 for 2026), those dollars reduce the $3,000 or $6,000 you can use for the care credit.
For childcare prices by metro, see how much daycare costs by county. For take-home pay after all federal, state and local taxes, use the take-home pay calculator.