Work vs Stay Home Calculator: Is the Second Income Worth It?
Child care can cost as much as a second salary. Before deciding, see what the job really adds to your household after federal and state taxes, Social Security and Medicare, child care, the child and dependent care credit and the cost of getting to work. The answer is often very different from the salary on the offer letter.
Single parent: enter 0.
The FSA limit is $7,500 a year starting in 2026.
Commuting, parking, lunches, work clothes, a second car.
Examples (married, $250/month work costs, no FSA)
| Situation | Child care per year | Added per year | Per hour |
|---|---|---|---|
| Texas: $45,000 job, 1 kid, $1,100/mo care | $13,200 | +$21,008 | $10.10 |
| California: $55,000 job, 2 kids, $2,200/mo care | $26,400 | +$13,194 | $6.34 |
| Ohio: $32,000 job, 2 kids, $1,500/mo care | $18,000 | +$6,072 | $2.92 |
| New York: $70,000 job, 1 kid, $1,800/mo care | $21,600 | +$26,125 | $12.56 |
The second income is taxed at your household's top rate, not from zero, because married couples file together. Add full-time child care and the take-home can shrink to a few dollars an hour, especially with two young children.
Ways to keep more of the second income
- Dependent care FSA: up to $7,500 a year of child care paid with pre-tax money (new limit from 2026). It saves federal, Social Security, Medicare and usually state tax. Compare it with the credit in our dependent care FSA calculator.
- Child and dependent care credit: 20% to 50% of up to $3,000 of costs for one child or $6,000 for two or more. Both parents must work (or be students) to claim it.
- Employer 401(k) match: free money the household loses if this job ends. It is counted above only if you enter a 401(k) percentage.
- Care costs fall over time: preschool and school-age care usually cost less than infant care.
What the money does not show
Leaving work for a few years can lower future pay, slow your career and shrink your Social Security record and retirement savings. Staying home has value that is hard to price. This calculator only answers the money part, so you can weigh the rest with real numbers.
How this calculator works
It figures your household take-home pay twice with the same 2026 federal, Social Security, Medicare and state tax math as our state paycheck calculators: once with both incomes (filing jointly) and once with only the other partner's income. With the job, it subtracts child care and work costs and adds the child care credit (or the FSA tax savings). Your own 401(k) contribution is counted as money you keep. The difference is what the job adds. City and county income taxes are not included.
FAQ
Is it worth working if child care costs almost my whole salary?
Look at what is left after taxes, child care and work costs, then weigh the long-term value: retirement savings, an employer match, Social Security credits and career growth. A small or even negative number for a few years can still be worth it.
Can I get the child care credit if one parent stays home?
Usually no. Both spouses must have earned income, unless one is a full-time student or unable to care for themselves.
What is the dependent care FSA limit for 2026?
$7,500 per household per year, up from $5,000.
Why is the second income taxed so much?
Married couples file together, so the second paycheck lands in the household's higher brackets, plus 7.65% Social Security and Medicare and any state tax.
Rules and rates last checked: October 2026. This is an estimate for general information only, not financial, tax or legal advice. Check IRS.gov or a tax professional before you file.