How Much Does Daycare Cost in 2026?
A comprehensive breakdown of child care costs across the United States, updated for 2026.
How Much Is Daycare a Week?
The average cost of daycare per week in the United States is approximately $250 per week for infant center-based care, though this figure varies dramatically by state and provider type. In high-cost states like Massachusetts and New York, weekly daycare costs can exceed $430 per week, while more affordable states like Mississippi average around $130 per week. For toddler care, expect to pay roughly 15% less, and school-age after-care programs typically cost 30-40% less than infant rates.
| Care Type |
Weekly Cost |
Monthly Cost |
Annual Cost |
| Infant Center-Based |
$250 |
$1,085 |
$13,020 |
| Toddler Center-Based |
$213 |
$922 |
$11,067 |
| School-Age Center-Based |
$175 |
$760 |
$9,114 |
| Family Child Care Home (Infant) |
$188 |
$815 |
$9,780 |
| Nanny (Full-Time) |
$750+ |
$3,250+ |
$39,000+ |
How Much Does Daycare Cost Per Month?
The average cost of daycare per month in 2026 is $1,085 for infant center-based care, making it one of the largest recurring household expenses for American families. To put this in perspective, the average monthly mortgage payment in the U.S. is approximately $1,500 — meaning child care for a single infant consumes roughly 72% of what families pay for housing. For families with two children in care, monthly costs can easily exceed $1,800-$2,200, surpassing housing costs entirely.
Monthly child care costs have increased by 35.5% since 2019, far outpacing general inflation (28.5% over the same period). The steepest increase came between 2023 and 2024, when the expiration of federal ARPA stabilization grants caused a 13.3% single-year spike in costs as providers raised prices to cover operating expenses previously subsidized by federal aid.
How Much Is Child Care a Month by State?
Child care costs vary enormously by state. The most expensive states for infant center-based care are Washington D.C. ($2,020/month), Minnesota ($1,895/month), and Massachusetts ($1,872/month). The most affordable states include Mississippi ($570/month), South Dakota ($620/month), and Alabama ($640/month). This 3.5x difference between the most and least expensive states reflects variations in staff-to-child ratio requirements, real estate costs, provider wages, and state regulatory standards.
Average Cost of Daycare Per Month by Age Group
Your child's age is one of the biggest factors in determining how much daycare costs. Infant care is the most expensive because state licensing regulations require lower staff-to-child ratios (typically 1:3 or 1:4 for infants vs. 1:10 or 1:12 for preschoolers). As children grow, costs decrease predictably:
- Infant (0-12 months): $1,085/month average — the most expensive due to 1:3 or 1:4 ratio requirements
- Toddler (1-3 years): $922/month average — approximately 15% less as ratios relax to 1:5 or 1:6
- Preschool (3-5 years): $845/month average — further reduction with 1:8 to 1:10 ratios
- School-Age (5-12 years): $760/month average — before/after school programs cost 30% less
Cost of Daycare: What's Driving the Increases?
Understanding why child care costs keep rising helps families plan ahead. Three primary forces are driving the cost of daycare upward in 2026:
1. ARPA Cliff Effect (2024): The American Rescue Plan Act provided $24 billion in stabilization grants to child care providers from 2021-2024. When these grants expired in September 2024, providers faced an average $1,500/month revenue gap that was largely passed on to families through price increases.
2. Labor Shortage: Child care workers earn a median wage of $14.60/hour — less than retail or food service workers. Providers must raise wages to attract and retain staff, which directly increases tuition. The sector has lost 8% of its workforce since 2020.
3. Real Estate and Insurance: Commercial lease rates for child care facilities have increased 12% since 2022, and liability insurance premiums have risen 18%, both contributing to higher operating costs passed on to families.
How to Reduce Your Child Care Costs
While child care is expensive, families have several strategies to reduce the financial burden. Here's a summary of the most effective approaches, from immediate savings to longer-term solutions:
| Strategy |
Potential Savings |
Who Qualifies |
| CCDF Subsidy Vouchers |
70-100% of costs |
Low/moderate income families |
| Tri-Share Programs |
Up to 67% |
Families in 9 participating states |
| Dependent Care FSA |
$1,200-$2,000/yr |
Anyone with employer FSA plan |
| CDCTC Tax Credit |
Up to $2,100/yr |
All taxpayers with child care expenses |
| Family Child Care Home |
15-30% less |
Anyone (vs. center-based care) |
| Employer Child Care Benefits |
$3,000-$6,000/yr |
Employees at participating companies |
| Part-Time Schedule (3 days) |
~35% |
Families with flexible schedules |
For employers looking to help their workforce with child care costs, the federal 45F tax credit can offset up to $500,000 annually in child care expenditures. Companies like TOOTRiS help employers implement child care benefit programs that leverage these credits while providing families with access to quality, affordable care.