Updated September 29, 2026. Quick answer: The maximum adoption tax credit under 26 U.S.C. §23 is $17,670 for 2026, up from $17,280 in 2025, phasing out between $265,080 and $305,080 of modified adjusted gross income, per IRS Revenue Procedure 2025-32. For the first time, the One Big Beautiful Bill Act of 2025 made up to $5,120 of the 2026 credit refundable (up from $5,000 for 2025, the first year the refundable portion applied), meaning a filer can receive that much even with no tax liability to offset. No named forecaster has published a 2027 projection for this credit as of this page’s last update.
The adoption credit, 2025-2026
| Year | Maximum credit | Phase-out range (MAGI) | Refundable portion |
|---|---|---|---|
| 2025 | $17,280 | $259,190-$299,190 | $5,000 |
| 2026 | $17,670 | $265,080-$305,080 | $5,120 |
| 2027 | Not yet projected | Not yet projected | Not yet projected |
The first refundable adoption credit dollars, ever
26 U.S.C. §23(a)(3) and (b)(1) set the maximum adoption credit, indexed for inflation under §23(h); §23(b)(2)(A) phases it out over a $40,000-wide MAGI band. Before the One Big Beautiful Bill Act of 2025, the entire credit was nonrefundable, meaning a filer with less tax liability than the credit amount simply lost the difference (though it could be carried forward up to 5 years). Public Law 119-21, §70402(a), added new §23(a)(4), making a portion of the credit refundable for the first time, beginning with tax years starting after December 31, 2024, meaning tax year 2025 was the first affected year, with the refundable amount itself indexed for inflation going forward: $5,000 for 2025, rising to $5,120 for 2026 per Revenue Procedure 2025-32. The remaining nonrefundable portion of the credit can still be carried forward up to 5 years, but the refundable portion cannot.
The 2027 gap: nobody has projected this one yet
Thomson Reuters Checkpoint’s September 11, 2026 key-figures article projects the 2027 Child Tax Credit and Earned Income Tax Credit, both set by the same Revenue Procedure section grouping as the adoption credit, but does not include an adoption credit line item; Bloomberg Tax’s 2027 projection report, based on the summaries this page could access, does not either. This page will be updated with a 2027 projection the first time a named forecaster publishes one, and with the official figures the day the IRS issues its 2027 Revenue Procedure.
The rates are already settled. Only the thresholds are still moving.
That is enough to plan against. A Roth conversion, a deferred bonus or a gain taken in 2027 can be sized today against the 10%, 12%, 22%, 24%, 32%, 35% and 37% rates the statute already fixes, without waiting for the Revenue Procedure. If you want someone to price that decision against your own income rather than a projection, this is the point to ask.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide is paid when you submit the form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here. You stay on this page.
What happens when you press the button
It asks about nine questions (age, investable assets, location), then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Sources
The adoption credit amounts on this page were checked against IRS Revenue Procedures 2025-32 (2026 amounts) and 2024-40 (2025 amounts) and 26 U.S.C. §23 on September 29, 2026.
- IRS Revenue Procedure 2025-32, section 4.04: the exact 2026 maximum credit ($17,670), phase-out range ($265,080-$305,080), and refundable portion ($5,120), read directly from the PDF's text.
- IRS Revenue Procedure 2024-40, section 2.04: the exact 2025 maximum credit ($17,280) and phase-out range ($259,190-$299,190), read directly from the PDF's text.
- 26 U.S.C. §23 (uscode.house.gov): the statute that defines these figures.
Statute: 26 U.S.C. §23, refundability added by the One Big Beautiful Bill Act of 2025 (Public Law 119-21), §70402(a).
Related
General information, not tax or legal advice. This page will be updated with the official 2027 figure the day it is announced.
How employer adoption benefits appear on a W-2: code T.