Sending your kids to summer camp? You could get up to $3,000 back when you do your taxes next year — here's how it works

The cost of day camp averages $275 to $900 a week, depending on where you live. And specialty camps — such as sports, STEM, arts or academics — are typically much more.

But some parents may not be aware of a tax break that could directly reduce their tax bill.

The One Big Beautiful Bill includes an expansion of the Child and Dependent Care Credit, designed to help working parents or guardians offset the costs associated with caring for a child or a dependent of any age with disabilities.

For the 2026 tax year, you can claim up to 50% of day camp expenses — up to $3,000 for one child and up to $6,000 for two or more children under the age of 13. If your child turns 14 while at day camp, you’re out of luck.

But there are a few catches. For example, you can only claim expenses related to childcare while you’re at work or looking for work — not paying a babysitter for date night.

Here’s how to figure out if you qualify, how it works and what other options you have.

How the tax credit works

The Child and Dependent Care Credit varies, depending on your earned income. It’s a tax credit, not a deduction, which means it cuts your tax bill dollar for dollar.

A tax deduction reduces the amount of income you pay tax on. So, for example, a tax deduction of $1,000 might only reduce your tax bill by a couple hundred bucks. A tax credit of $1,000 cuts your tax bill by $1,000. This, in turn, could increase your refund.

Beginning in 2026, the percentage you can claim for qualifying expenses has increased to a maximum of 50% and a minimum of 35%.

“The credit is calculated based on your income and a percentage of expenses that you incur for the care of qualifying persons to enable you to go to work, look for work or attend school,” according to the Internal Revenue Service.

That means there’s a sliding scale that drops from a maximum of 50% to a minimum of 35%, based on your adjusted gross income (AGI).

Taxpayers in the lowest tax bracket would receive the full 50% credit. After that, the percentage of expenses you can claim is reduced on a sliding scale by one percentage point for every $2,000 of AGI above $15,000, until it reaches 35% (an AGI of $75,000 for single filers and $150,000 for married couples filing jointly).

It then drops down toward a floor of 20% for high earners.

If you’re divorced or separated, the custodial parent — meaning the parent who has primary physical custody — can claim the credit.

It sounds simple, but it can get complicated. The IRS ha an online tool that can help you run some numbers and find out if you’re eligible. You can find out more by reviewing IRS Publication 503.

Which camp expenses qualify?

Eligible expenses are for summer day camps and after-school care, regardless of the type of camp — so long as those options were chosen because the parent or parents had to work. But overnight camps don’t qualify.

So, if you’re enrolling your child in a day camp that costs $500 a week for six weeks, for a total of $3,000, that would count as a qualifying expense. But an overnight camp for the same cost wouldn’t qualify. This could be a deciding factor in what type of camp to choose for your child.

Costs that qualify include day camp fees, as well as before- and after-camp care — so long as that care is being provided during or bridging your work schedule

But not every summer camp qualifies (for example, summer school or tutoring may not qualify).

When booking a summer day camp, ask if it’s eligible for the tax credit.