Daycare Cost FAQ

The national average for center-based infant care is about $632/month ($7,580/year). Costs vary widely by state — from under $500/month in Mississippi to over $1,500/month in Washington, D.C.

Center-based care is provided in a licensed facility with multiple staff and structured programs. Family childcare is provided in a caregiver's home, typically for a smaller group. Family care is usually 10-20% cheaper but has fewer spots and less structured curriculum.

Infant care (0-12 months) is the most expensive age group everywhere in the U.S. Infants require lower staff-to-child ratios (often 1:3 or 1:4), which drives up costs. Prices typically drop 10-15% for toddlers and another 5-10% for preschoolers.

The Child Care and Development Fund (CCDF) provides subsidies to low-income families. Eligibility varies by state but generally requires income below 85% of the state median. Contact your state's childcare assistance program — find your state on our state directory.

The CDCTC lets you claim 20-35% of up to $3,000 in childcare expenses for one child ($6,000 for two or more). The credit percentage decreases as income increases. You claim it on your federal tax return (Form 2441).

A DCFSA lets you set aside up to $5,000/year in pre-tax dollars for childcare expenses through your employer. This reduces your taxable income. You can use both a DCFSA and the CDCTC, but expenses claimed under one can't be claimed under the other.

Childcare is labor-intensive. State regulations require low staff-to-child ratios (especially for infants), and staff need training and background checks. Facilities must meet safety standards, carry insurance, and provide meals. Despite high costs to parents, childcare worker wages remain among the lowest in the U.S.

Daycare itself isn't directly deductible, but you can reduce costs through the Child and Dependent Care Tax Credit (up to $1,050 back for one child) and a Dependent Care FSA (up to $5,000 pre-tax). Both require the care to be for a child under 13 while you work or look for work.

The U.S. Department of Health and Human Services says childcare is "affordable" at 7% or less of household income. Use our calculator to see what percentage daycare would cost based on your income and location.

From cheapest to most expensive: informal care (family/friends, often free), family childcare homes, church/nonprofit programs, au pairs, and center-based daycare. Head Start and state pre-K programs are free for qualifying families.

Yes, dramatically. Center-based infant care ranges from about $5,400/year in Mississippi to over $17,000/year in Washington, D.C. and Massachusetts. Cost of living, state regulations, and staff wage requirements all drive the difference.

Head Start is a free federal program for children from low-income families (ages 3-5). Early Head Start serves infants and toddlers. Eligibility is generally at or below the federal poverty level. Contact your local Head Start program through the Head Start Locator.

Start researching 3-6 months before you need care. Infant spots are especially limited — some centers have waitlists of 6-12 months. Tour facilities, check licensing records, and ask about staff turnover and ratios.

Key questions: What are your staff-to-child ratios? What's your staff turnover rate? How do you handle sick children? What's your daily schedule? Can I drop in unannounced? What's your discipline policy? Are you licensed and insured? What are all the fees (registration, supplies, late pickup)?

Generally yes, because of higher real estate costs, wages, and cost of living. But the gap varies — some rural areas have few providers, which can drive up costs due to limited supply. Check your specific county on our state directory.

All prices come from the National Database of Childcare Prices (NDCP), published by the U.S. Department of Labor Women's Bureau. The dataset covers 3,221 counties with 2022 median prices — the most recent available.