Child Care Cost Calculator
Compare child care costs by type and state, plus see how tax credits and FSA reduce your net cost.
Family Details
Monthly Cost
$1,200
Annual Cost
$14,400
After Tax Savings
$13,800
Tax Savings
Cost by Care Type (California)
| Type | Monthly | Annual |
|---|---|---|
| Day Care Center | $1,200 | $14,400 |
| Nanny | $1,800 | $21,600 |
| Family Home | $900 | $10,800 |
| Preschool | $1,020 | $12,240 |
Disclaimer
Costs are state averages and vary by provider. CDCTC and FSA rules may change. Consult a tax professional.
Average Child Care Costs by Type
Child care is one of the largest expenses for American families — often rivaling rent or mortgage payments. Costs vary dramatically by location, child's age, and care type. Infant care is the most expensive due to lower caregiver-to-child ratios.
| Care Type | National Average | Range |
|---|---|---|
| Daycare Center (infant) | $1,350/mo | $800-$2,500 |
| Daycare Center (toddler) | $1,100/mo | $700-$2,200 |
| Family Daycare | $900/mo | $500-$1,500 |
| Nanny (full-time) | $2,800/mo | $2,000-$4,500 |
| Au Pair | $1,800/mo | $1,500-$2,200 |
Tax Savings for Child Care
Two key benefits help offset costs: The Child and Dependent Care Tax Credit (CDCTC) covers 20-35% of up to $3,000 in expenses for one child or $6,000 for two+. A Dependent Care FSA lets you set aside up to $5,000 pre-tax for child care, saving $1,000-$2,000 in taxes depending on your bracket. You can use both, but not for the same expenses.
Child Care Aware — Cost Data→Frequently Asked Questions
Which states are the most expensive for child care?
Massachusetts, Washington DC, California, and New York consistently rank highest. In Massachusetts, infant daycare averages over $20,000/year. Meanwhile, Mississippi and South Carolina average under $7,000/year.
Is a nanny or daycare more cost-effective?
For one child, daycare is almost always cheaper. For two or more children, a nanny or nanny-share can become competitive — you pay one salary regardless of the number of kids. A nanny-share (splitting a nanny with another family) typically costs 60-70% of a solo nanny rate per family.
Can both parents claim the child care tax credit?
If married filing jointly, you file one return and claim the credit together. For divorced or separated parents, only the custodial parent (the one the child lives with for more than half the year) can claim the CDCTC. The non-custodial parent cannot claim this credit even if they pay for child care.
What qualifies as eligible child care expenses?
Eligible expenses include daycare centers, in-home care providers, after-school programs, and day camps (not overnight camps). The care must enable you (and your spouse, if married) to work or actively look for work. Payments to a relative under age 19 or to someone you claim as a dependent do not qualify.
Related: Child Tax Credit Calculator and Budget Planner.