How Much Does Daycare Cost?
Childcare is one of the largest household expenses for American families. According to Child Care Aware of America, the average annual cost of full-time center-based infant care in the US is $12,000–$22,000 per year — more than in-state college tuition in many states.
Average Costs by Age Group
Infant Care (0–12 months)
The most expensive category due to low required ratios and higher staffing needs. National average: $1,000–$2,500/month for center-based care. Higher in cities like NYC ($3,000+) and San Francisco ($2,800+).
Toddler Care (1–3 years)
Slightly less expensive as ratios improve. National average: $900–$2,000/month. Still varies widely by state and urban vs. rural location.
Preschool / Pre-K (3–5 years)
Most affordable full-day option. National average: $700–$1,500/month for center-based programs. Part-day preschool is often half that.
School-Age Care (5+ years)
Before/after school care averages $200–$700/month, with summer programs ranging from $1,000–$2,500.
Costs by Program Type
| Type | Monthly Range | Notes |
|---|---|---|
| Center-based (full-time) | $700–$2,500 | Most regulated, consistent |
| Family daycare home | $500–$1,500 | Often cheaper, smaller groups |
| Nanny (in-home) | $2,500–$5,000+ | One-on-one, most flexible |
| Head Start | Free | Income-eligible families |
| Part-day preschool | $300–$900 | Usually 3–5 hrs/day |
Most and Least Expensive States
Most Expensive
- Massachusetts: ~$2,400/month for infant care
- California: ~$2,100/month
- New York: ~$2,200/month
- Connecticut: ~$2,300/month
- Washington DC: ~$2,700/month
Most Affordable
- Mississippi: ~$650/month
- Arkansas: ~$700/month
- Alabama: ~$730/month
- Louisiana: ~$740/month
- South Carolina: ~$780/month
Ways to Lower Your Childcare Bill
1. Child and Dependent Care Tax Credit
Claim up to $3,000 in expenses for one child ($6,000 for two or more) on your federal taxes. Credit is 20–35% depending on income. Available to working parents.
2. Dependent Care FSA (Flexible Spending Account)
If your employer offers it, you can contribute up to $5,000/year pre-tax to cover childcare expenses. Combined with the tax credit, this can save $1,500–$2,500 per year.
3. CCAP / CCDF Subsidies
The Child Care and Development Fund provides federal subsidy money distributed through state CCAP programs. Eligibility is income-based — typically families earning up to 85% of state median income qualify. See our subsidies guide for state-by-state details.
4. Head Start Programs
Free comprehensive early childhood programs for income-eligible families. Over 1 million children enrolled annually. Apply through your local Head Start program office.
5. Employer Childcare Benefits
Increasingly, larger employers offer backup childcare, childcare subsidies, or partnerships with care networks. Ask your HR department.
The Real Cost of Childcare
For families with two children under 5, childcare can easily exceed $3,000–$4,000 per month — more than rent in many parts of the country. This is why subsidy programs matter. If you think you might qualify, apply. Programs are chronically underutilized because families don't know they're eligible.
Finding Affordable Options Near You
Use DaycareHub to filter centers by subsidy acceptance in your area. Our subsidies section walks through how to apply in each state.
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