2026 update: the DCFSA limit just rose to $7,500
The plain-English guide to the Dependent Care FSA
Everything you need to know about this employer “cafeteria plan” benefit: what changed for 2026, who qualifies, what you can spend it on, and exactly how much you'll save.
2026 household limit
$7,500
Up from $5,000 in 2025
Married filing separately
$3,750
Up from $2,500 in 2025
Tax treatment
Pre-tax
Deducted from payroll before income & FICA tax
Source: IRS Publication 503, Child and Dependent Care Expenses & IRS Topic No. 602, Child and Dependent Care Credit. Limit increase enacted under the One Big Beautiful Bill Act (OBBBA).
How a Dependent Care FSA works
Elect an amount
During open enrollment, choose how much to set aside from your paycheck for dependent care — up to the 2026 IRS limit.
Pay for care
Use the funds for eligible care for a qualifying child under 13 or an incapacitated spouse or dependent.
Get reimbursed
Submit receipts to your plan administrator, or pay directly with an FSA debit card if your plan offers one.
Explore the guide
What Is a Dependent Care FSA?
The basics of this Section 125 cafeteria plan benefit and who it's for.
Eligible Expenses
Daycare, preschool, summer camp, and more — what qualifies and what doesn't.
2026 Contribution Limits
The new $7,500 limit explained, plus how it compares to prior years.
Frequently Asked Questions
Use-it-or-lose-it, grace periods, job changes, and other common questions.
Savings Calculator
Estimate your real tax savings based on income and expected care costs.
For Employers & HR
How to offer, explain, and administer a DCFSA benefit to your team.
DCFSA vs. the Dependent Care Tax Credit
The 2026 credit got a lot more generous. Here's how to decide which is worth more for you.
Dependent Care FSA by State
State income tax rates and what to check before you enroll, for all 50 states + D.C.