Childcare Costs By State

The cost of childcare can take up a large chunk of a family’s spending, with the average annual cost being 29.43% of a typical household’s income. [1] Household Spending - U.S. Census https://data.census.gov/table?g=0500000US24001,24003 We’ve analyzed some of the latest data and reports on childcare costs in the U.S. to find out which states are paying the most.

Key Statistics

• A household with a national median income of $64,529 will spend 29.43% of its earnings on childcare.
• The average cost of daycare across the United States is $18,866 per child per year.
• Childcare costs the most in Connecticut, at an average of $27,125 per year for daycare, whereas it’s the cheapest in South Dakota at $14,813 per year.
• In all states, infant care (up to 18 months) is the most expensive form of daycare, with a U.S. average of $22,350 per child per year, compared to $17,800 for toddler care and $13,950 for preschooler care.
• Across all states, the average annual cost to hire a full-time nanny is $35,432.
• 55% of Millennials were living in families with a spouse and/or children in 2019, compared to 85% of the Silent Generation in 1968.

Average childcare costs by state

The average cost of childcare across the United States is $18,886 per year. The state with the most expensive average childcare costs is Connecticut, at $27,125 per year. South Dakota has the lowest costs for childcare, at $14,813 per year.

*Estimated figures based on inflation adjustment using a rate of 6.4%.

Disclaimer: Average annual childcare costs by state were taken from the average costs for infant, toddler, pre-school and family childcare, and combined to determine one average cost figure for all childcare.

Source [2] The True Cost of High Quality Childcare - American Progress https://www.americanprogress.org/article/true-cost-high-quality-child-care-across-united-states

Childcare by type in the U.S.

The cost of care for different types of daycare also varies, typically depending on the child’s age. The data below shows the breakdown of costs for infant, toddler, and preschooler care and family childcare settings.

• Infant care - The most expensive state is Massachusetts with an average cost of $36,200 per child per year, while the cheapest is South Dakota at $16,450. The average annual cost for infant care in the U.S. is $22,350.
• Toddler care - Connecticut has the most expensive cost for toddler care at $30,700, compared to Louisiana with the cheapest at $13,350. The average annual cost for toddler care in the U.S. is $17,800.
• Preschooler care - The most expensive preschooler care is in Washington D.C. at $18,650 per child per year, but the state with the highest priced preschooler care is Rhode Island at $18,600 per year. Louisiana has the cheapest costs for preschooler daycare at $10,750. The U.S. average is $13,950 for preschooler daycare.
• Family childcare - This type of care involves a caregiver looking after children in their own home rather than a daycare center. These programs are typically licensed for children between the ages of 6 and 12. Connecticut has the most expensive family childcare costs at $24,525 per year, while Louisiana has the cheapest at $12,050. The average cost for family childcare in the U.S. is $15,875 per child per year.

Source [2] The True Cost of High Quality Childcare - American Progress https://www.americanprogress.org/article/true-cost-high-quality-child-care-across-united-states

As we can see from the figures, infant care is the most expensive type of daycare, and the cost typically increases as children get older, with preschool care being the cheapest form of childcare in every state.

The cost of childcare compared to median income

The average U.S. household that pays for childcare will spend 29.43% of their income on care for one child, based on a median household income of $64,529. 

The highest percentage of income spend on childcare is in West Virginia, where childcare costs 37.18% of the median income. Hawaii has the lowest income-to-childcare ratio, with the cost being 22% of the median household income.

Sources [2] The True Cost of High Quality Childcare - American Progress https://www.americanprogress.org/article/true-cost-high-quality-child-care-across-united-states

Change in the cost of childcare over time

The price of childcare hasn’t always been the same. Let’s take a look at how the average costs have changed over time in the U.S.

In 2004, the average cost of childcare in the U.S. was $13,332 per child which made up 31% of the average household income. Since then, the average childcare cost has increased but the percentage of household income has declined. This suggests that the average household income across all households has risen faster than the cost of childcare. However, this does not mean that households who rely on daycare have necessarily seen a rapid rise in their annual income.

Net childcare costs for parents using childcare facilities
Year	USD	% of net household income
2004	$13,332	31%
2008	$15,591	31%
2012	$16,844	30%
2015	$15,446	27%
2018	$18,486	29%
2019	$18,949	29%
2020	$18,183	27%
2021	$12,226	14%
2030 (predicted)*	$18,323	19%
2035 (predicted)*	$19,035	16%
2040 (predicted)*	$19,748	13%
2050 (predicted)*	$21,173	8%

*Figures predicted using TREND 

Source [3] Net Childcare Costs - OECD https://stats.oecd.org/Index.aspx?DataSetCode=NCC

Cost differences between daycare and nanny care

The table below shows the difference in costs between the annual cost of daycare compared to the annual cost of hiring a nanny to care for a child. The state with the highest difference in price is Arizona where a nanny costs 76.08% more at $37,152 compared to $16,675 for daycare.

The state with the lowest difference is Connecticut where a full-time nanny only costs 39.5% more at $40,476, compared to $27,125 for daycare. As we mentioned earlier, Connecticut’s annual daycare costs are also the highest of all the states.

Across all states, the average annual cost to hire a nanny is $35,432. The most expensive state to hire a nanny in is Massachusetts with an average annual cost of $43,656.

Nanny costs based on a 40-hour work week.

Sources [4] Average Nanny Salary - Care.com https://www.care.com/c/average-nanny-salary-by-state/

Additional costs for caring for children

Childcare is, of course, not the only cost to consider when it comes to looking after children. The cost of raising a child from birth includes a wide variety of expenses from food and medical care to toys and activities.

Below are some of the most common baby items and the average annual amount spent on these per baby. Some of these items will be purchased once or twice, like a car seat or crib, while others, like diapers and clothing, will be purchased regularly over the first few years of a child’s life.

Sources [5] How Much Does It Cost to Have a Baby? - What to Expect https://www.whattoexpect.com/getting-pregnant/preparing-for-baby/work-and-finance/what-babies-really-cost.aspx [6] How Much Does it Cost to Raise a Baby? - Healthline https://www.healthline.com/health/parenting/how-much-does-it-cost-to-raise-a-baby-and-what-you-can-do-to-prepare#clothing

How many millennials have children?

Data from Pew Research Center found that the percentage of adults having children has reduced significantly over the past 60 years. The research defines people aged 23 to 38 as being in a family if they live with a spouse, their own children (either biological, adopted, or step children), or both.

In 2019, 55% of Millennials were living in a family of this type, compared to 66% of Gen X in 2003, 69% of Baby Boomers in 1987, and 85% of the Silent Generation in 1968. This change over time could show that fewer people are choosing to settle down with families and have children than in previous generations.

Generation	Living with a spouse and children	Not living with a spouse and children
Millennials (2019)	55%	45%
Gen X (2003)	66%	34%
Baby Boomer (1987)	69%	31%
Silent Generation (1968)	85%	15%

Source [7] Millennials Family Life - Pew Research https://www.pewresearch.org/social-trends/2020/05/27/as-millennials-near-40-theyre-approaching-family-life-differently-than-previous-generations/

Getting help with childcare costs

If you are struggling to cover your childcare costs, there are a few ways you can get help. [8] Childcare Financial Assistance - U.S. Gov. https://childcare.gov/consumer-education/get-help-paying-for-child-care

Government programs

• Childcare financial assistance - States receive funding from the federal government for childcare financial assistance for low-income families through vouchers, subsidies or certificates. Eligibility requirements vary by state so check your local childcare assistance program for more details.
• State-funded prekindergarten - For children aged 3-5, some states offer prekindergarten services for free or at low costs for eligible families. These aim to prepare children for starting kindergarten.
• Head Start and Early Head Start - These programs help children prepare for school from birth to age 5 with early learning in development support. They are available at no cost for families on low incomes who are eligible.
• Military childcare financial assistance - A number of programs help military families pay for childcare where they are stationed. See local guidance for more details in your state.

Local assistance and discounts

• Sibling discounts - Some local childcare providers will offer a discount for families that enroll more than one child into their care. This might include a percentage or dollar amount reduction in the cost, or a waiver of other fees.
• Local scholarships and assistance - In some areas, local nonprofit organizations will offer scholarships or financial assistance to eligible families to cover childcare costs.
• Military discounts - Some local childcare providers offer discounts for children of military families. Check with your chosen provider if this is available.

Tax-related support

• Earned-income tax credit - Families on low to moderate incomes can get a tax break if they qualify. This may reduce the taxes you pay or possibly give you a tax refund, depending on if you qualify.
• Child and dependent care tax credit - This is available to people who need to pay for childcare while they work and look for work and is applicable to children under the age of 13. [8] Childcare Financial Assistance - U.S. Gov. https://childcare.gov/consumer-education/get-help-paying-for-child-care

Methodology

To calculate the average annual daycare costs for infants, toddlers, and preschoolers we took an average from the typical costs for base quality and high-quality daycare in each state.

Sources

• ^[1] Household Spending - U.S. Census https://data.census.gov/table?g=0500000US24001,24003
• ^[2] The True Cost of High Quality Childcare - American Progress https://www.americanprogress.org/article/true-cost-high-quality-child-care-across-united-states
• ^[3] Net Childcare Costs - OECD https://stats.oecd.org/Index.aspx?DataSetCode=NCC
• ^[4] Average Nanny Salary - Care.com https://www.care.com/c/average-nanny-salary-by-state/
• ^[5] How Much Does It Cost to Have a Baby? - What to Expect https://www.whattoexpect.com/getting-pregnant/preparing-for-baby/work-and-finance/what-babies-really-cost.aspx
• ^[6] How Much Does it Cost to Raise a Baby? - Healthline https://www.healthline.com/health/parenting/how-much-does-it-cost-to-raise-a-baby-and-what-you-can-do-to-prepare#clothing
• ^[7] Millennials Family Life - Pew Research https://www.pewresearch.org/social-trends/2020/05/27/as-millennials-near-40-theyre-approaching-family-life-differently-than-previous-generations/
• ^[8] Childcare Financial Assistance - U.S. Gov. https://childcare.gov/consumer-education/get-help-paying-for-child-care