The Short Answer: More Than You Expect
If you haven't priced childcare before, brace yourself. For many families, childcare is one of the top three household expenses — right up there with housing and food. In some parts of the country, a year of infant daycare costs more than a year of in-state college tuition.
But costs vary enormously depending on where you live, how old your child is, and what type of care you choose. Understanding those variables will help you budget realistically and find options that work for your family.
Average Costs by Type of Care
Here's what childcare typically costs in 2026, based on national averages. Your local costs may be higher or lower depending on your area.
Center-Based Childcare
This is the most common form of organized childcare and generally the most expensive.
- Infants (0-12 months): $1,100 to $1,800 per month
- Toddlers (1-2 years): $1,000 to $1,600 per month
- Preschool age (3-5 years): $900 to $1,400 per month
In high-cost metro areas like San Francisco, New York, Boston, or Washington D.C., these numbers can be 30-50% higher. In smaller cities and rural areas, they can be 20-30% lower.
Family Home Daycares
Home-based providers generally cost less than centers, partly due to lower overhead and partly because they tend to be smaller operations.
- Infants: $800 to $1,200 per month
- Toddlers: $750 to $1,100 per month
- Preschool age: $700 to $1,000 per month
Family homes often offer more flexibility on scheduling and may accept part-time arrangements that centers won't.
Preschool Programs
Preschools vary widely. A half-day program at a community preschool might cost $400-$700 per month, while a full-day program at a private preschool can cost as much as center-based care — or more.
- Half-day (3-4 hours): $400 to $800 per month
- Full-day: $900 to $1,500 per month
Keep in mind that half-day programs may require a second care arrangement for the rest of the day, which adds to the total cost.
Nannies and In-Home Care
Hiring a nanny is typically the most expensive option on a per-family basis, but can become cost-effective if you have multiple children.
- Full-time nanny: $2,500 to $4,000+ per month (varies hugely by market)
- Nanny share (two families): $1,500 to $2,500 per family per month
Nanny costs also come with employer obligations — payroll taxes, workers' comp, and potentially benefits — that add 10-15% on top of the base salary.
What Drives the Cost?
Childcare pricing isn't random. These are the main factors that determine what you'll pay.
Age of your child. Infant care is the most expensive, period. The reason is simple: states require lower staff-to-child ratios for younger children. A provider might need one adult for every four infants, but one adult for every ten preschoolers. More staff per child means higher costs.
Type of care. Centers have the highest overhead (rent, utilities, insurance, multiple staff), family homes have less, and the cost reflects it. See our comparison of childcare types for the full breakdown.
Location. Childcare costs track closely with cost of living. A provider in Manhattan and a provider in rural Wisconsin have vastly different rent, wage, and insurance costs, and that shows up in what they charge.
Hours. Full-time care (typically 8-10 hours per day, five days a week) costs more than part-time. Some providers offer 2-day or 3-day options at a reduced rate, but not all.
Curriculum and extras. Programs that include enrichment activities, foreign language instruction, organic meals, or specialized curriculum (Montessori, Reggio Emilia) typically charge more.
Financial Assistance Options
Childcare costs are daunting, but there are programs designed to help. Here are the main ones to know about.
Child Care Subsidies (CCDF)
The Child Care and Development Fund is the largest federal program for childcare assistance. It's administered by states, so eligibility and benefit levels vary, but the basics are:
- Income-based: Most states set eligibility at or below 85% of the state median income, though many set it lower
- Work requirement: You typically need to be working, in school, or in a job training program
- Copay: Families usually pay a copay based on income, and the subsidy covers the rest up to a maximum rate
Apply through your state's childcare assistance program. Wait times can be long — some states have waitlists — so apply early if you think you might qualify.
Child and Dependent Care Tax Credit
This federal tax credit lets you claim a percentage of your childcare expenses when you file your taxes.
- Up to $3,000 in expenses for one child, or $6,000 for two or more children
- The credit is a percentage of those expenses (20-35%, depending on your income)
- For most middle-income families, this works out to $600-$1,050 for one child
It's not enough to solve the problem on its own, but every bit helps. You claim it on your annual tax return using Form 2441.
Dependent Care FSA (DCFSA)
If your employer offers a Dependent Care Flexible Spending Account, this is one of the most valuable benefits available to working parents.
- You can set aside up to $5,000 per year in pre-tax dollars for childcare expenses
- Since the money is pre-tax, you save your marginal tax rate on every dollar — for a family in the 22% federal bracket, that's $1,100 in tax savings
- The money must be used for work-related childcare for children under 13
Important: You can use either the DCFSA or the tax credit for the same expenses, but not both. For most families with income above $40,000 or so, the DCFSA saves more money. Run the numbers for your situation.
Head Start and Early Head Start
Head Start is a federally funded program that provides free early childhood education to children from low-income families.
- Early Head Start serves pregnant women and children from birth to age 3
- Head Start serves children ages 3 to 5
- Eligibility is primarily based on income (at or below the federal poverty line), but children in foster care, homeless families, and families receiving public assistance also qualify
- Programs include education, health screenings, nutrition services, and family support
Head Start is widely available — there are programs in every state — but spots fill up quickly. Contact your local Head Start program to apply.
State-Specific Programs
Many states run their own childcare assistance programs beyond the federal ones. Examples include:
- Pre-K programs: Many states offer free or subsidized pre-K for 4-year-olds (and sometimes 3-year-olds). Availability and quality vary.
- Quality rating bonuses: Some states pay higher subsidy rates to providers with higher quality ratings, which gives you better options if you're using a subsidy.
- Military childcare: Active-duty military families have access to on-base childcare and fee assistance programs through the Department of Defense.
Check with your state's childcare resource and referral agency to find out what's available where you live.
Tips to Reduce Your Childcare Costs
Beyond formal assistance programs, here are practical strategies families use:
Ask about sibling discounts. Many providers offer 5-15% off for a second child. It won't offset the full cost of two kids in care, but it adds up.
Consider part-time care. If your schedule or work arrangement allows it, 3-day or 4-day care costs less than full-time. Some families combine part-time daycare with a grandparent or work-from-home day.
Look into employer benefits. Beyond the DCFSA, some employers offer childcare subsidies, backup care programs, or partnerships with local providers. Check with your HR department — these benefits are sometimes buried in the employee handbook.
Explore family home daycares. They're typically 20-30% less than centers and can offer more personal attention. Don't dismiss them because they're less expensive — many are excellent. See our comparison of care types.
Check sliding-scale programs. Some nonprofit childcare centers and community programs set fees based on family income. These can be significantly less expensive than market-rate programs.
Time your enrollment. Some providers charge a lower rate for children who start closer to their next birthday or who will age into a less expensive classroom soon. Ask about rate changes at the next age transition.
The Bottom Line
Childcare is expensive, and there's no way to sugarcoat that. But understanding your options — both in types of care and in financial assistance — puts you in a much better position to find something that works for your family's budget.
Start by understanding what's available near you. Browse childcare providers in your area on KinderScouts to see the options, and then factor in the financial assistance you might qualify for. The right arrangement is out there — it just takes some research to find it.