Budget & income
Is the second income worth it after tax and childcare?
A second-income calculator: couples enter the spouse's salary, a combined tax rate, childcare and other work costs to see the net benefit of working.
Included on every plan, even the free Practitioner plan. No card needed.
How much does a second income really add?
Subtract tax on the second salary, at the household's combined marginal rate, then childcare and other work-related costs such as commuting. What's left is the net benefit. On a $50,000 salary at a 30% combined rate with $15,000 of childcare and $3,000 of other costs, the family keeps $17,000.
Before the school year, or when parental leave ends
The question comes at a family turning point: the end of parental leave, a child starting school, or a job offer. It's emotional and financial, and the household wants an honest number first.
What the client types into a search box
“is it worth it for me to go back to work after paying for childcare”
How a client works through it
Enter the spouse's salary
Gross annual pay.
Enter a combined tax rate
Federal, state and payroll taxes on the second income.
Enter childcare cost
Annual cost caused by working.
Enter other work costs
Commuting, clothing, meals.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
Salary, rate and costs show household income and childcare spending. A small net benefit is the moment to show credits, FSAs and long-term career value the calculator doesn't include.
Net benefit and what it leaves out
After-Tax Income is the salary minus tax. Work-Related Costs total childcare and other costs. Net Benefit of Working is the difference, what the household actually gains each year.
It leaves out benefits such as employer retirement match and health insurance, which can make working more valuable.
Results shown: Net Benefit of Working · After-Tax Income · Work-Related Costs.
A $50,000 job
$50,000 at a 30% combined rate leaves $35,000. Subtract $15,000 of childcare and $3,000 of other costs: the net benefit is $17,000 a year, before any childcare credit or employer benefits.
Why tax firms help with this decision
The second income is taxed at the household's marginal rate, and the child and dependent care credit or a dependent care FSA changes the result. A CPA can show the real figure, which is often better than the rough one.
Planners add the long-term view: retirement savings, Social Security credits and career growth.
Follow-ups this request opens
- Apply the child and dependent care credit or a dependent care FSA
- Adjust withholding for two incomes
- Plan retirement savings for the returning spouse
- Consider part-time or self-employment options
What this calculator leaves out
- Single combined tax rate.
- Credits such as the child and dependent care credit excluded.
- Employer benefits not valued.
- Long-term career effects not modeled.
Platform disclaimer shown under the calculator: Estimates only. Uses a single combined tax rate on the second income; lost benefits, tax credits (such as the child and dependent care credit) and retirement contributions may change the true figure.
Compliance note for firms
Family financial decisions deserve neutral presentation. Advice on credits and withholding is written tax advice under Circular 230 §10.37; a planner's recommendation should consider both spouses' long-term interests.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
2026 figures this page relies on
| Figure | Value | Tax year | Source |
|---|---|---|---|
| Dependent care FSA limit (per household) | $7,500 | 2026 | IRS, as stated in the calculator |
The same values drive the calculator. Full list on the 2026 figures page.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Net benefit of working
- What the household actually gains from the second income: after-tax income minus childcare and other work-related costs. It is often much smaller than the gross salary suggests. The figure leaves out non-cash factors such as retirement savings, Social Security credits, health coverage and career growth, which can matter over the long run.
- Combined tax rate
- The total rate on the added income: your federal marginal bracket plus state tax plus 7.65% FICA for Social Security and Medicare (IRS, 2026). Because a second income is stacked on top of the first, it is taxed at the household’s marginal rate, not an average rate, which is why the tax bite can feel steep.
- Marginal tax rate
- The rate applied to the next dollar of household income. For married couples filing jointly, the second earner’s first dollar is taxed at the rate where the first earner’s income left off. That is why this calculator asks for a marginal rate rather than your overall average rate on total income.
- FICA
- Payroll taxes for Social Security and Medicare, withheld from wages at 7.65% for the employee share (IRS, 2026). Unlike income tax, FICA applies from the first dollar of wages, with no deductions. Those payments also earn the working spouse Social Security credits of their own, a benefit this calculator does not value.
- Childcare cost
- The extra childcare the family needs only because the second spouse works, such as daycare, after-school programs or a nanny. It is often the largest work-related cost and can absorb much of a second income. Include only the added cost, not care you would pay for anyway.
- Child and dependent care credit
- A federal tax credit that returns part of the childcare costs paid so that you, and your spouse if married, can work. It reduces the net cost of childcare and so raises the true benefit of working. This calculator does not include it, so the net benefit shown may be somewhat understated.
In our glossary: Marginal tax rate · Flexible spending account
Should My Spouse Work? calculator: questions from firms and clients
What tax rate should we use?
The household's combined marginal rate including payroll tax (7.65%) and state tax.
Does it include the childcare credit?
No, which may understate the benefit.
Can a dependent care FSA help?
Yes, up to $7,5002026 · IRS of pre-tax money. See the FSA calculator.
Are benefits included?
No; employer match and insurance add value.
What about Social Security?
Working builds the spouse's own benefit record.
Does it model part-time work?
Enter the part-time salary and costs.
Is the result advice?
No, a starting estimate.
Which plan includes it?
Every plan, including the free Practitioner plan, which runs up to 5 calculators at once alongside the other household planning tools. Firm (up to 50) and Network (no cap) add webhooks and white-label. See pricing.
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