How Much Childcare Costs by State in the USA in 2024

‍Source – Morning Brew

From cradle to preschool: The American dream now comes with a hefty price tag.

Childcare in the United States is a vital resource for families, providing a safe and nurturing environment for children to learn and grow while parents focus on their careers. However, in a country often hailed as the land of opportunity, the rising costs of childcare have emerged as a significant obstacle for families trying to balance work and home life.

The average cost of childcare in the USA for infants ranges from $400 to $1,500 per month. This substantial expense is putting a strain on household budgets, forcing parents to make tough decisions about their careers, family planning, and financial future.

Of parents surveyed in the 2022 Cost of Care Survey, 72% say center-based care for their infant costs 10% of their family’s income. 51% of respondents spend more than 20%. Ironically, the US Department of Health and Human Services (HHS) considers daycare affordable when it costs no more than 7% of their household income.

In this article, we’ll explore how much daycare costs in the USA, looking at variations between states, the factors influencing these costs, and the impact on families. Whether you’re looking for the most affordable options or identifying where parents face the steepest challenges, we’ve got you covered.

Childcare Costs Across All 54 States

Wondering how much is daycare in the different states of the USA? It can be a rollercoaster ride for parents’ wallets. The cost of childcare by state varies dramatically depending on where you live. While some states offer more affordable options, others can feel like a financial black hole. Understand it like this:

• Coastal Capitals: Cities like San Francisco and New York City are known for their sky-high daycare rates – think of them as the luxury resorts of the childcare world.
• Heartland Bargains: States in the Midwest often have more reasonable rates. Imagine finding a hidden gem of affordable care.
• Rural Retreats: Smaller towns and rural areas might offer cheaper options, but availability and quality vary.

Below is a brief overview of average daycare costs across all 54 states.

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Source:
Child Care at a Standstill: Price and Landscape Analysis
Child care costs in the United States

1. Alabama

How much does daycare cost annually in Alabama?

• Average Annual Cost: $6,000 – $7,000
• Details:
  • One of the most affordable states for childcare.
  • Many rural areas offer lower costs compared to urban centers like Birmingham.
  • Families often rely on informal care due to limited access to licensed centers.

How do Alabama’s demographics impact childcare?

• For the average Alabama family, childcare costs 11.9% of their gross income.
• Minimum wage workers in Alabama often earn less than $16,000 per year, adding to Alabama’s poverty rate of 17.2%.
• Because of a poverty rate of 17.2%, families in Alabama struggled with using tech to set up virtual classes during COVID-19, resulting in learning losses for 11% of children.

2. Alaska

How much does daycare cost annually in Alaska?

• Average Annual Cost: $12,000 – $13,500
• Details:
  • Higher costs due to the state’s remote location and a limited number of childcare centers.
  • Childcare availability is concentrated in urban areas like Anchorage and Fairbanks.
  • Additional costs for transportation in rural areas.

How do Alaska’s demographics impact childcare?

• Although Alaska is the largest US state, it is the least populated state in the Union. The average population density in Alaska is 1.2 people per square mile.
• The median income in nuclear households is $51,651 annually, with families spending 20% on childcare.

3. Arizona

How much does daycare cost annually in Arizona?

• Average Annual Cost: $10,500 – $12,000
• Details:
  • Higher childcare costs in cities like Phoenix and Tucson.
  • A growing population has led to increased demand for licensed childcare centers.
  • Availability of government grants and subsidies to help offset costs.

How do Arizona’s demographics impact childcare?

• Although Arizona is the sixth largest US state by area, the average family earnings are low, with households making around $40,039 annually.
• However, parents expect childcare bills to lower as the fastest-growing state by population is attracting childcare service providers in hordes.

4. Arkansas

How much does daycare cost annually in Arkansas?

• Average Annual Cost: $6,500 – $8,000
• Details:
  • Affordable childcare options, especially in rural areas.
  • The low cost of living keeps childcare rates below the national average.
  • Limited options for high-quality, licensed childcare centers in certain regions.

How do Arkansas’s demographics impact childcare?

• Arkansas is among the 10 states with the highest poverty rates.
• The state is home to some of America’s poorest families, and reported a 16.4% poverty rate in 2022 – 7th highest among all states.
• A single minimum wage worker spends, on average, 35.8% of their pay on child care, while families with kids who earn median wages spend 14.6%.

5. California

How much does daycare cost annually in California?

The Golden State ranks number 4 for childcare costs in the US.

• Average Annual Cost: $16,000 – $20,000
• Details:
  • Among the most expensive states for childcare, especially in cities like Los Angeles and San Francisco.
  • High demand for childcare centers due to a large working population.
  • Subsidized childcare options are available but with long waiting lists.

How do California’s demographics impact childcare?

• Half of Hollywood resides in California, which justifies the skyrocketing childcare prices.
• 93% of its 40 million residents are unable to access affordable childcare services.
• Families spend nearly 20-30% of their annual earnings on care for a single child.

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6. Colorado

How much does daycare cost annually in Colorado?

• Average Annual Cost: $15,000 – $16,000
• Details:
  • High costs in urban areas like Denver and Boulder.
  • Increased focus on early childhood education programs driving up demand and costs.
  • State subsidies are available but not sufficient to cover all families in need.

How do Colorado’s demographics impact childcare?

• Colorado ranks as the fifth costliest state for childcare
• Since minimum wage workers earn nearly $25000 annually, they spend 50% of it on childcare, which burns a hole in their pocket.

7. Connecticut

How much does daycare cost annually in Connecticut?

• Average Annual Cost: $15,000 – $18,000
• Details:
  • Childcare costs are higher than the national average.
  • Demand for high-quality early childhood programs is increasing.
  • Suburban areas are more affordable compared to cities like Hartford.

How do Connecticut’s demographics impact childcare?

• On average, nuclear family households make about $45359 annually, making childcare bills stressful for them.
• They would need to spend 73.8% of what they earn to afford just one year of infant care services for their child.

8. Delaware

How much does daycare cost annually in Delaware?

• Average Annual Cost: $9,000 – $11,000
• Details:
  • Affordable compared to neighboring states like Maryland.
  • Demand for licensed centers is growing, especially in urban areas.
  • Limited availability of flexible care options.

How do Delaware’s demographics impact childcare?

• Delaware workers make around $28000 annually. The minimum wages in the US state have been stagnant even though inflation has been on the rise.
• Latest statistics conclude that the parents end up spending 55% of their annual earnings on daycare services.

9. Florida

How much does daycare cost annually in Florida?

• Average Annual Cost: $9,000 – $10,500
• Details:
  • Costs vary significantly between urban centers like Miami and smaller cities.
  • Many families rely on family-based childcare options.
  • State-funded programs offer limited assistance to low-income families.

How do Florida’s demographics impact childcare?

• The median wage in Florida is $34,560. This puts the state at 41st among all states.
• A family earning two median incomes would spend 13.3% of their gross income on infant care services for one child.
• However, daycare providers argue that a sizable part of their budget has to be allocated to tech – live streaming classes, bus tracking, and a parent-teacher communication app.

10. Georgia

How much does daycare cost annually in Georgia?

• Average Annual Cost: $8,500 – $10,000
• Details:
  • Increasing costs due to a growing population in cities like Atlanta.
  • High demand for licensed centers, though rural areas still offer more affordable options.
  • The availability of state-run early education programs helps offset costs.

How do Georgia’s demographics impact childcare?

• Georgia’s median earnings are $40000 annually, due to which childcare becomes inaccessible to the minimum age worker who earns $20000/year.
• Because they would have to spend about 80% of their gross income on child care with just one child, the lowest-paid residents of the state will never be able to afford it.
• Georgia is the eighth-most populous state with nearly 10 million citizens. The availability of cheap child care would have a significant positive economic and social impact.

11. Hawaii

How much does daycare cost annually in Hawai?

• Average Annual Cost: $13,000 – $14,500
• Details:
  • The remote location and high cost of living drive up childcare expenses.
  • Limited childcare options, particularly outside urban areas like Honolulu.
  • Few subsidies are available for middle-income families.

How do Hawaii's demographics impact childcare?

• The state of beautiful beaches also has the highest cost of living in the US. The average earnings of married families in Hawaii is $108893 yearly and of nuclear families comes in at $49031/annum.
• The latter group struggle with affording childcare, spending 15% of their income on childcare management services put in place by childcare owners.

12. Idaho

How much does daycare cost annually Idaho?

• Average Annual Cost: $7,000 – $8,500
• Details:
  • Lower-than-average childcare costs, especially in rural areas.
  • Growing demand in cities like Boise as population increases.
  • Limited availability of licensed centers in some regions.

How do Idaho’s demographics impact childcare?

• The current Idaho state minimum wage is $23000/annum an hour.
• Many families who make the median income in this US state can’t afford childcare costs as it takes up 18% of their earnings.

13. Illinois

How much does daycare cost annually Illinois?

• Average Annual Cost: $13,000 – $15,000
• Details:
  • High costs in urban areas like Chicago, though suburban regions are more affordable.
  • Increased focus on early childhood education contributes to rising costs.
  • State subsidies are available but competitive to secure.

How do Illinois’s demographics impact childcare?

• The cost of child care for households is close to the median household income level of $5,730 per month, which is more than 20% of gross income.
• Childcare services take away an astounding 50% of the median yearly income of families based in Illinois.

14. Indiana

How much does daycare cost annually in Indiana​?

• Average Annual Cost: $12,000 – $13,500
• Details:
  • More affordable childcare compared to neighboring states.
  • Higher costs in urban centers like Indianapolis.
  • Limited availability of flexible care options for working parents.

How do Indiana’s demographics impact childcare?

• Indiana has a diverse population. The most prominent races are Blacks and Hispanics, with 27% below the poverty level. In contrast, only 10% of Whites are below the poverty line.
• The median income of $30000-$50000 makes it difficult for parents to provide a developmentally appropriate education to their kids.

15. Iowa

How much does daycare cost annually in Iowa?

• Average Annual Cost: $9,000 – $10,500
• Details:
  • Affordable childcare, particularly in rural regions.
  • State-funded programs assist low-income families.
  • Demand for licensed centers growing in cities like Des Moines.

How do Iowa’s demographics impact childcare?

• Situated in the midwest, Iowa’s population comprises farmers who work the farmlands and tend to the livestock.
• With 11.11% of people in Iowa below the poverty line and earning a median income of $35000-$60000, childcare providers struggle to market their childcare to mothers, majority of whom stay at home to look after the children.

16. Kansas

How much does daycare cost annually Kansas?

• Average Annual Cost: $10,500 – $12,000
• Details:
  • Childcare costs vary widely between rural and urban areas.
  • Higher costs in growing cities like Wichita.
  • Few state programs are available to help with childcare expenses.

How do Kansas’s demographics impact childcare?

• Kansas people still struggle to locate reasonably priced, high-quality child care choices, despite having the eighth-lowest cost of living in the country.
• The median household income in Kansas amounted to $84,830 in 2023.
• The parents in Kansas spend nearly 15% of their earnings to cover childcare costs for a single child.

17. Kentucky

How much does daycare cost annually in Kentucky ?

• Average Annual Cost: $6,300 – $8,500
• Details:
  • Affordable childcare in rural areas, though urban centers like Louisville are more expensive.
  • Limited availability of licensed childcare centers in certain regions.
  • The state offers subsidies for low-income families.

How do Kentucky’s demographics impact childcare?

• Even while child care is more reasonable in Kentucky than in other parts of the country, many families still cannot afford it.
• A family would spend slightly under 12% of their total income on center-based infant care for one child with a typical household income of around $4,500 per month.
• Kentucky’s low cost of living makes it a terrific location to start a profitable childcare. There’s not a lot of competition in the childcare industry, giving you an opportunity to free parents for joining work by leaving their kids behind with you.

18. Louisiana

How much does daycare cost annually in Louisiana?

• Average Annual Cost: $7,500 – $9,500
• Details:
  • Costs are rising, particularly in urban areas like New Orleans.
  • Limited access to high-quality, licensed childcare centers.
  • State-funded programs are available for low-income families.

How do Louisiana’s demographics impact childcare?

• Louisiana’s childcare costs are low compared to other US states.
• At a median salary of $50,800 per household, childcare owners and directors observe centers running at low capacity because it’s not within an affordable range for families.

19. Maine

How much does daycare cost annually in Maine?

• Average Annual Cost: $9,000 – $12,000
• Details:
  • Higher costs due to the state’s remote location and a limited number of childcare centers.
  • Demand for childcare is concentrated in urban areas like Portland.
  • Rural regions offer fewer licensed options.

How do Maine’s demographics impact childcare?

• Maine is one of the least populated US states. Majority of the people live in and around Portland, making it an ideal location to start your preschool.
• The median salary of families is above industry standards in Maine, which will help you turn your preschool profitable.

20. Maryland

How much does daycare cost annually in Maryland?

• Average Annual Cost: $14,000 – $17,000
• Details:
  • One of the more expensive states for childcare, particularly in urban areas like Baltimore.
  • High demand for quality centers, driving up costs.
  • Subsidies are available but not sufficient to cover the majority of families.

How do Maryland’s demographics impact childcare?

• The median wage of a household is $69110, which means families spend nearly 10% of their income on rearing children
• Maryland’s average salary for child care employees is slightly above the federal minimum, but many families find it difficult to afford childcare because of the depreciating job sector.

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21. Massachusetts

How much does daycare cost annually in Massachusetts?

• Average Annual Cost: $18,000 – $20,000
• Details:
  • Among the most expensive states for childcare, particularly in Boston.
  • High demand for early childhood education programs.
  • Some subsidies are available, but waiting lists are long.

How do Massachusetts’s demographics impact childcare?

• The high female unemployment rate in Massachusetts i.e. 24.39% can be attributed to costly childcare services.
• With the median income of an average household being $106,500, families spend nearly 20% of their earnings on childcare for their infant.

22. Michigan

How much does daycare cost annually in Michigan?

Despite having a low cost of living, Michigan residents struggle to find high-quality, tech-friendly childcare options.

• Average Annual Cost: $10,000 – $12,000
• Details:
  • Higher costs in urban areas like Detroit and Ann Arbor.
  • Demand for licensed centers is increasing due to a growing workforce.
  • The state offers various subsidies, but access can be competitive.

How do Michigan’s demographics impact childcare?

• The median family in Michigan would spend 19% of their gross income on baby care services for a single kid with a monthly household income of about $4,750.
• Some economists are optimistic that Michigan can pass tax incentives to support childcare businesseses in a state whose main source of income, the car industry, is declining rapidly.

23. Minnesota

How much does daycare cost annually Minnesota?

Childcare in Minnesota is more expensive than university tuition and rent combined.

• Average Annual Cost: $15,000 – $16,500
• Details:
  • Childcare costs in the Twin Cities are significantly higher than in rural areas.
  • High demand for licensed centers with a focus on early childhood education.
  • State-funded assistance programs are available for eligible families.

How do Minnesota’s demographics impact childcare?

• In Minnesota, childcare costs are the second highest among all states.
• Minnesota couples may earn higher household incomes, but the high cost of childcare means that these families still spend up to 23% of their income on childcare for one child.
• In fact, the Minnesota Department of Human Services extends help to low-income parents with subsidy programs to cover the high charges of daycare reporting and other expenses.

24. Mississippi

How much does daycare cost annually in Mississippi​?

• Average Annual Cost: $5,200 – $7,000
• Details:
  • One of the most affordable states for childcare.
  • Costs are lower in rural areas, though urban centers like Jackson have slightly higher rates.
  • Limited access to licensed centers in many regions.

How do Mississippi’s demographics impact childcare?

• Mississippi had the lowest median household income.
• On an average a family spends 12.3% of their income on infant care for one child. A minimum wage earner has to work for nearly 100 hours to cover the average cost of childcare in Mississippi.
• Mississippi has the lowest housing costs and the fourth-lowest grocery costs, making it a potentially appealing market for starting an affordable childcare center.

25. Missouri

How much does daycare cost annually in Missouri?

• Average Annual Cost: $10,200 – $11,000
• Details:
  • Urban areas like St. Louis and Kansas City have higher costs.
  • More affordable options in rural regions.
  • Subsidies are available but limited in scope, with long waiting periods for assistance.

How do Missouri’s demographics impact childcare?

• The average Missouri household earned about $78,290 annually in 2023 and would have had to spend a remarkable amount of their total income on center-based infant care for a single child each month.
• You can visit the Missouri Department of Social Services for help with paying the daycare fee, in light of less employment opportunities in the state.

26. Montana

How much does daycare cost annually in Montana?

• Average Annual Cost: $8,500 – $10,000
• Details:
  • Costs are on the rise, particularly in growing urban areas like Billings and Missoula.
  • Rural regions offer more affordable childcare options.
  • Limited availability of high-quality licensed centers in some parts of the state.

How do Montana’s demographics impact childcare?

• According to a study of Montana households, the median income is $79,220.
• A family would spend 17% of their monthly income on the single childcare they need.

27. Nebraska

How much does daycare cost annually in Nebraska?

• Average Annual Cost: $12,000 – $13,000
• Details:
  • Affordable compared to national averages.
  • Costs are higher in urban areas like Omaha.
  • Subsidies are available but not sufficient for many families.

How do Nebraska’s demographics impact childcare?

• The median household in 2023 made $89,190 per year and would have spent more than 20% of their total income on childcare for one child.
• In Nebraska, childcare costs more than both rent and college tuition.

28. Nevada

How much does daycare cost annually in Nevada?

• Average Annual Cost: $10,000 – $12,500
• Details:
  • Costs in Las Vegas are significantly higher than in rural areas.
  • Growing demand for childcare services as the state’s population increases.
  • The state offers assistance programs, but many families still face financial challenges.

How do Nevada’s demographics impact childcare?

• The Silver State’s residents earn nearly $81,310 annually, shelling out 7-15% of their income on childcare.
• The Nevada Early Care and Education Office is a useful resource for parents who are looking for resources to help care for their children. The website contains guides on early childhood education, as well as applications to receive childcare assistance.

29. New Hampshire

How much does daycare cost annually in New Hampshire?

• Average Annual Cost: $12,000 – $14,500
• Details:
  • Higher-than-average childcare costs, especially in urban areas like Manchester.
  • Growing demand for high-quality childcare options.
  • Limited availability of flexible childcare arrangements for working parents.

How do New Hampshire’s demographics impact childcare?

• In New Hampshire, mandatory minimum wage earners face a particular challenge when it comes to childcare. They must spend 85% of their pay in order to put an infant in center-based care.
• New Hampshire’s Department of Health and Human Services provides licensing guidelines for providers of center-based and home-based child care services. They also provide guidance on child care management requirements and other relevant topics.

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30. New Jersey

How much does daycare cost annually in New Jersey?

• Average Annual Cost: $12,500 – $16,500
• Details:
  • Childcare costs are higher in densely populated areas like Newark and Jersey City.
  • Demand for early childhood education programs is on the rise.
  • Subsidies are available but with long waitlists.

How do New Jersey’s demographics impact childcare?

• New Jersey may be one of the smallest states in America, but it packs a big punch.
• It is an expensive state, with mean household income coming to $91,590. Families in New Jersey pay some of the lowest portions of their salary, 10%.
• Parents can visit the Child Care New Jersey website for information on child care subsidies, how to choose a child treatment center and how to find child care locally.

31. New Mexico

How much does daycare cost annually in New Mexico?

• Average Annual Cost: $8,500 – $10,000
• Details:
  • Costs are lower than the national average.
  • Urban areas like Albuquerque have slightly higher rates than rural regions.
  • The state offers financial assistance programs for low-income families.

How do New Mexico’s demographics impact childcare?

• The median household income in New Mexico was $62,268 in 2023.
• That household would have to spend more than 18% of its monthly cash flow on child care services for a single infant.
• Opening a licensed childcare center in the state is profitable due to many unregulated services having cropped up.

32. New York

How much does daycare cost annually in New York?

• Average Annual Cost: $15,000 – $20,000
• Details:
  • Among the most expensive states for childcare, particularly in New York City.
  • High demand for licensed centers and early education programs.
  • Some state-funded programs are available, but access is highly competitive.

How do New York’s demographics impact childcare?

• Minimum wage workers earning under $50000 struggle to keep up with the rising infant care costs in New York, which takes away about 35% of their income.
• New York’s Division of Child Care Services operates subsidies for the State of New York. The State also invests in Early Head Start programs to lessen the blow of the rising childcare costs by state.

33. North Carolina

How much does daycare cost annually in North Carolina ?

• Average Annual Cost: $9,000 – $11,500
• Details:
  • Higher costs in urban centers like Charlotte and Raleigh.
  • More affordable options in rural areas.
  • State-funded programs help low-income families, though availability is limited.

How do North Carolina’s demographics impact childcare?

• The median household income in North Carolina was $68,610 annually. For a median family with one infant, 17.5% of their monthly income would have been spent on child care services.
• One long-running NC program, subsidized child care, aims to help by providing a way for parents to get affordable access to quality care for their children. The requirements are strict and only qualified caregivers can be considered eligible. You can visit the North Carolina DHHS website for more information on eligibility requirements and application processes.

34. North Dakota

How much does daycare cost annually in North Dakota?

• Average Annual Cost: $9,000 – $10,500
• Details:
  • Costs are relatively affordable, especially in rural areas.
  • Urban areas like Fargo have seen increasing demand, driving up prices.
  • Limited availability of licensed childcare centers in certain regions.

How do North Dakota’s demographics impact childcare?

• An average household comprises 2-4 family members, with the median income being $76,960 annually. Families spend a staggering 35% on childcare.
• If a family decides to have a second child, they could end up spending nearly 30% of their net income on child care.
• North Dakota is home to programs and resources that can help parents save money on child care. Child Care Aware of North Dakota offers such services.

35. Ohio

How much does daycare cost annually in Ohio?

• Average Annual Cost: $8,500 – $10,500
• Details:
  • Urban areas like Columbus and Cleveland have higher childcare costs.
  • Rural regions offer more affordable options.
  • State-funded subsidies are available, but many families still struggle with the costs.

How do Ohio’s demographics impact childcare?

• Ohio is one of the most densely populated and expensive US states, with families spending 32% of their annual income on covering childcare costs.
• The median household income in Ohio is just under $73,770 annually.
• If you’re looking to implement some changes with your child care provider that will help your family, the Ohio Department of Job and Family Services can help you.

36. Oklahoma

How much does daycare cost annually in Oklahoma?

• Average Annual Cost: $7,500 – $9,000
• Details:
  • Affordable compared to neighboring states.
  • Costs are higher in urban areas like Oklahoma City.
  • Limited availability of high-quality licensed centers in rural regions.

How do Oklahoma’s demographics impact childcare?

• In 2023, the median household income in Oklahoma was just over $67,330 annually. An household would have had to spend nearly 17% of that income on infant care for a single child.
• Since centers in Oklahoma have more amenities for working parents, such as bus tracking, it also causes the costs to go significantly higher.
• Parents can explore the Oklahoma Department of Human Services website for information about choosing quality child care.

37. Oregon

How much does daycare cost annually in Oregon ?

• Average Annual Cost: $13,000 – $14,500
• Details:
  • Childcare costs in Portland are among the highest in the state.
  • High demand for early childhood education programs is driving up costs.
  • Some state-funded assistance is available, but access can be competitive.

How do Oregon’s demographics impact childcare?

• The median household income in Oregon was $88,740 in 2023.
• 1 out of every 33 adults in Oregon has a child dependent on them to meet their basic needs. It costs nearly 21% of their total cash flow to take care of their infant/toddler.
• Oregon is one of the most expensive states for living, and it’s hardest on families with kids who need high-quality and affordable child care. Oregon Early Learning can help! They have a database of many different providers that are high-quality and affordable.

38. Pennsylvania

How much does daycare cost annually in Pennsylvania?

• Average Annual Cost: $11,000 – $13,500
• Details:
  • Costs are higher in urban centers like Philadelphia and Pittsburgh.
  • More affordable options are available in suburban and rural areas.
  • The state provides assistance programs for low-income families.

How do Pennsylvania’s demographics impact childcare?

• The median household income in Pennsylvania was $79,820 annually.
• A minimum wage worker in Pennsylvania makes the Federal minimum wage and would have to spend 78.5% of their gross earnings on child care costs.
• According to recent statistics, the parents end up spending nearly 20% of their annual earnings on daycare services. The financial impact childcare has on families in Pennsylvania is so severe that it keeps mothers out of work.

39. Rhode Island

How much does daycare cost annually in Rhode Island?

• Average Annual Cost: $12,000 – $14,500
• Details:
  • Among the more expensive states for childcare.
  • High demand for licensed centers and early education programs.
  • Subsidies are available, but access is limited.

How do Rhode Island’s demographics impact childcare?

• The median household income in Rhode Island was $81,860 in 2023.
• The people of Rhode Island will enjoy improved communication with their children’s teachers if they weren’t struggling to pay the daycare fee, with 21% of their yearly cash flow allocated towards childcare services.
• You can find information on how to apply for subsidized child care on the RI Department of Human Services website.

40. South Carolina

How much does daycare cost annually in South Carolina?

• Average Annual Cost: $7,000 – $10,000
• Details:
  • Costs are rising in urban areas like Charleston and Columbia.
  • Rural regions offer more affordable childcare options.
  • State-funded programs help offset costs for low-income families.

How do South Carolina’s demographics impact childcare?

• Although the US Human and Health Services advise that you shouldn’t pay more than 10% of a household’s budget, parents in South Carolina pay 20% of their annual cash flow to childcare services.
• The median household in the state amounted $69,100 in 2023.
• The SC Voucher Program supports working parents in South Carolina. For more information on how to apply, visit http://scchildcare.us/apply/.

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41. South Dakota

How much does daycare cost annually in South Dakota?

The financial burden on parents varies in South Dakota because the US state has different childcare models.

• Average Annual Cost: $6,500 – $9,000
• Details:
  • Childcare costs are relatively affordable, especially in rural areas.
  • Urban areas like Sioux Falls have seen increasing demand, driving up prices.
  • Limited availability of licensed centers in some regions.

How do South Dakota’s demographics impact childcare?

• The median household income in South Dakota was $81,740 in 2023.
• Women are paid much lesser, with their annual package being a paltry $30,772.
• They have to shell out 10-15% of their annual income for childcare services.
• The South Dakota Department of Social Services has plenty of resources for parents and child care providers. You can check out their website for valuable information.

42. Tennessee

How much does daycare cost annually in Tennessee?

• Average Annual Cost: $8,000 – $10,500
• Details:
  • Higher costs in urban centers like Nashville and Memphis.
  • Rural areas offer more affordable childcare options.
  • Limited state assistance for middle-income families.

How do Tennessee’s demographics impact childcare?

• The median household in Tennessee was $ 72,700 in 2023. In order to afford infant care for one child, families would have to spend over 16% of their total income.
• In a family of two minimum wage earners, as opposed to one, they will have to spend almost 30% on child care every month.
• The Tennessee Department for Children and Families helps connect parents with subsidy programs and daycare owners with assistance programs to streamline childcare budgets.

43. Texas

How much does daycare cost annually in Texas ?

• Average Annual Cost: $9,000 – $11,000
• Details:
  • Urban centers like Houston, Dallas, and Austin have higher childcare costs.
  • More affordable options in smaller cities and rural areas.
  • Demand for licensed centers is increasing due to a growing population.

How do Texas’s demographics impact childcare?

• Texas is the second most populous state.
• With 20% of the population below the poverty line and households earning a median income of $79,060 yearly, over 10% of earnings are directed towards childcare.

44. Utah

How much does daycare cost annually in Utah?

• Average Annual Cost: $9,200 – $11,500
• Details:
  • Costs are higher in urban areas like Salt Lake City.
  • More affordable options in rural regions.
  • State-funded programs offer limited assistance for low-income families.

How do Utah’s demographics impact childcare?

• Every month, the average cost of infant care can be $11,000 in the state of Utah. This means that a minimum wage worker would need to work 114 hours to pay for the average cost.
• Center-based childcares in Utah increased their pricing by 27% during COVID-19, making them inaccessible for nearly 20% of their population.
• If you need help paying for child care, visit the Utah Department of Workforce Services.

45. Vermont

How much does daycare cost annually in Vermont?

• Average Annual Cost: $12,000 – $14,000
• Details:
  • Higher-than-average costs due to limited availability of childcare centers.
  • Rural regions offer fewer licensed options, driving up demand in urban areas.
  • State-funded programs are available but with limited reach.

How do Vermont’s demographics impact childcare?

• The median household income in Vermont was $85,190 in 2023, with childcare taking away a remarkable amount of their earnings.
• If you’re a new parent and need help finding quality childcare, visit the Vermont Official State Website. You can use their resources to voice your concerns about childcare.

46. Virginia

How much does daycare cost annually in Virginia?

• Average Annual Cost: $11,500 – $14,500
• Details:
  • Urban areas like Arlington and Richmond have higher costs.
  • More affordable options in rural regions.
  • The state offers various assistance programs, though they can be competitive.

How do Virginia’s demographics impact childcare?

• Virginia’s low minimum wage and high child care costs are a significant challenge for parents who work for the minimum wage.
• According to the Economic Policy Institute, infant care takes up 18.2% of a median family’s earnings in Virginia.
• The Virginia Department of Social Services can assist you with information on child care assistance programs and resources.

47. Washington

How much does daycare cost annually in Washington?

• Average Annual Cost: $14,000 – $16,500
• Details:
  • Higher costs in Seattle and surrounding areas.
  • Demand for early education programs and licensed centers is on the rise.
  • The state provides subsidies, but they do not cover all expenses.

How do Washington’s demographics impact childcare?

• Washington State has the highest minimum wage in the country at $16.28.
• Washington families spend 20% of their average mean income annually on childcare. Parents face fewer childcare choices as the costs continue to rise.
• If you’re a child care provider or parent in Washington State, the Department of Children, Youth and Families is here to help. The resources the Department provides include childcare subsidies from the Working Connections Child Care program.

48. West Virginia

How much does daycare cost annually in West Virginia?

• Average Annual Cost: $6,500 – $8,000
• Details:
  • One of the most affordable states for childcare.
  • Lower demand for licensed centers in rural areas.
  • The state offers assistance for low-income families, though options are limited.

How do West Virginia’s demographics impact childcare?

• The average annual rate for infant childcare is 4% above the average in West Virginia, with families making $55,948 yearly.
• Compared to the average housing rental rate, in-state college tuition, and other states, infant care in the Mountain State costs more now than it did a decade ago.

49. Wisconsin

How much does daycare cost annually in Wisconsin?

• Annual Cost: $10,000 – $13,000
• Details:
  • Costs are higher in urban centers like Milwaukee and Madison.
  • More affordable options in suburban and rural areas.
  • The state provides subsidies to help families manage costs.

How do Wisconsin’s demographics impact childcare?

• The median household in Wisconsin was between $70,996 and $79,690 in 2023. This means people have to spend a remarkable amount on childcare.
• Because of far and few regulated childcare facilities in Wisconsin, people below poverty line are left out.
• Through the Wisconsin Department of Children and Families, parents can learn more and apply for childcare subsidies.

50. Wyoming

How much does daycare cost annually in Wyoming?

• Annual Cost: $8,500 – $10,800
• Details:
  • Childcare costs are on the rise, particularly in growing urban areas.
  • Rural regions offer fewer licensed options, driving up demand.
  • Limited state-funded assistance programs are available.

How do Wyoming’s demographics impact childcare?

• Median household income in Wyoming earn was $77, 200 and spend nearly 22% of their total income to place a child in a center.
• The minimum wage here is $7.25 per hour.
• A minimum wage worker in this state earns around $891 per month and would have to spend all of it to cover child care costs for one child.

51. Washington DC

• Annual Cost: $20,000 – $24,000
• Details:
  • The highest childcare costs in the nation.
  • High demand for licensed childcare facilities due to a dense population and working professionals.
  • Access to subsidies and assistance programs is available, but the competition is intense.

52. Puerto Rico

• Annual Cost: $4,000 – $6,000
• Details:
  • Among the most affordable places for childcare.
  • Many centers are privately run, with public facilities being limited.
  • Subsidies are available through government programs, especially for low-income families.

53. Guam

• Annual Cost: $6,000 – $8,000
• Details:
  • Childcare costs are moderate but rising due to a growing population.
  • Limited availability of licensed centers, especially in rural areas.
  • Government assistance programs are available but have limited reach.

54. U.S. Virgin Islands

• Annual Cost: $5,500 – $7,500
• Details:
  • Affordable childcare compared to mainland U.S.
  • Urban centers like Charlotte Amalie have slightly higher costs.
  • Limited access to high-quality licensed centers; many families rely on home-based care.

55. Northern Mariana Islands

• Annual Cost: $4,500 – $6,500
• Details:
  • One of the more affordable territories for childcare.
  • Rural areas have very limited licensed childcare options.
  • Government subsidies are available, but funding can be inconsistent.

56. American Samoa

• Annual Cost: $3,500 – $5,000
• Details:
  • The most affordable location for childcare under U.S. jurisdiction.
  • With the limited number of licensed centers; many families rely on informal care.
  • Some government assistance is available, primarily for low-income families.

How Much Does Childcare Cost in the USA in 2024?

As parents chase their career aspirations, they face a daunting financial challenge that wasn’t part of the traditional American dream – the skyrocketing cost of childcare. As the cost of living continues to rise, so does the price of providing quality care for children.

For infants and toddlers, full-time care can range from $550 to $1,500 per month. This steep price tag can make it difficult for families to balance work and childcare responsibilities.

Preschool programs for 3- to 5-year-olds are slightly less expensive, but still a substantial expense. Parents can expect to pay between $400 and $1,300 per month for these programs.

Source – Trusted Daycare

As parents navigate the ever-increasing cost of living, childcare or daycare expenses continue to rise. According to a recent study, the average weekly cost of childcare in the United States has seen a significant increase in 2024.

Here’s a breakdown of the average weekly childcare costs:

• Nannies: Parents looking for personalized care can expect to pay an average of $766 per week for a nanny, up 4% from 2022.
• Daycare: For those seeking professional childcare in a group setting, the average weekly cost is now $321, a substantial increase of 13% from the previous year.
• Family Care Centers: A more affordable option, family care centers charge an average of $230 per week, a slight increase of 0.4% compared to 2022.
• Babysitters: Casual childcare through babysitters has also seen a price hike, with the average weekly cost rising to $192, up 7% from 2022.

National Average for Childcare Costs

Childcare expenses are a significant portion of household budgets. According to a recent Care survey the Economic Policy Institute (EPI) estimates that on average, a family in the U.S. spends around 10-15% of its income on childcare, with infant care typically being the most expensive.

Infant Care

According to EPI, the national average cost of infant care is approximately $1,230 per month. In states like California and New York, costs can easily exceed $2,000 per month.

Toddler and Preschool Care

Costs tend to decrease slightly as children grow older and require less individual attention. The average cost for toddler and preschool care hovers around $850 to $1,100 per month.

Comparing Costs to Income

Childcare costs often outpace other household expenses, sometimes surpassing even college tuition in certain states. For example, in Virginia, the average cost of infant care is 33% higher than in-state college tuition, underscoring the financial burden on families.

Factors Affecting Childcare Costs

The steep rise in childcare costs can be attributed to a combination of factors, including labor expenses, regulatory requirements, the demand for quality education, and general inflation in operational expenses. Understanding these causes is critical in addressing the challenges faced by both childcare providers and families.

Labor Costs and Wage Growth

One of the primary drivers of increasing costs is the rising wages for childcare workers. According to the BLS, childcare workers earn a median hourly wage of $14.60, but in many states, this has been increasing due to higher minimum wage laws. For example, in California, where the state minimum wage is among the highest in the country, the hourly wage for childcare workers averages around $15.40.

As labor costs increase, childcare providers are forced to pass these expenses on to parents to cover their operating costs. This trend is expected to continue as states raise their minimum wages and increase benefits for workers.

Regulatory Requirements and Child-Staff Ratios

Childcare providers in the U.S. are subject to state licensing regulations that dictate the required staff-to-child ratios, facility standards, and safety protocols. These regulations, while essential for maintaining high standards of care and safety, contribute to rising operational costs. For example, in New York, the required child-to-teacher ratio for infants is 4:1, which means that for every four infants, one caregiver must be employed. This creates a need for more staff, increasing payroll expenses.

The Office of Child Care (OCC) within the U.S. Department of Health and Human Services (HHS) notes that maintaining compliance with state regulations can also involve costly facility upgrades, safety equipment, and ongoing staff training, all of which contribute to the increasing cost of childcare.

Demand for High-Quality Early Childhood Education

The demand for high-quality early childhood education is also a major factor in the rising costs of childcare. Parents are increasingly seeking childcare programs that offer developmental learning, technology integration, and highly qualified educators. According to the National Institute for Early Education Research (NIEER), the best preschools often have more experienced and educated staff, lower child-to-teacher ratios, and more comprehensive curriculums, which all contribute to higher operational costs.

Providers who aim to meet these standards invest heavily in staff training, curriculum development, and modern facilities, leading to higher tuition fees for parents.

Inflation and Facility Costs

Another contributing factor to rising childcare costs is general inflation, particularly in terms of real estate and facility maintenance. As commercial real estate prices increase, especially in urban areas, childcare providers have to deal with the higher rent or mortgage payments. Additionally, the cost of insurance, utilities, and maintenance has also increased significantly, adding to the expenses childcare centers must cover through higher fees for parents.

Government Laws and Assistance Programs for Childcare

To address the growing financial burden of childcare, the U.S. government offers several grants and assistance programs designed to help families afford high-quality care. These programs aim to reduce the cost of childcare for low- and middle-income families and provide access to early childhood education for all children.

Child Care and Development Block Grant (CCDBG)

The Child Care and Development Block Grant (CCDBG) is the largest federal funding source for childcare assistance. Administered by the Office of Child Care (OCC), the CCDBG provides subsidies to low-income families, helping them afford quality childcare. The program serves families with incomes below 85% of the state median income, and as of 2022, nearly 1.5 million children were enrolled in CCDBG-supported childcare programs.

Eligible families receive vouchers that can be used to pay for care at licensed childcare centers, in-home care providers, or family childcare homes. The amount of assistance varies by state and family income level, but the CCDBG is a critical resource for families struggling with high childcare costs.

Head Start and Early Head Start Programs

The Head Start and Early Head Start programs, administered by the U.S. Department of Health and Human Services (HHS), provide free early childhood education and care for children from low-income families. The programs serve children from birth to age five and focus on school readiness, health services, and family well-being.

Head Start programs are available in all states, and as of 2021, they served over 1 million children. Families must meet income eligibility requirements, and priority is given to families living below the federal poverty level. Early Head Start serves infants and toddlers, while Head Start focuses on preschool-aged children.

Child and Dependent Care Tax Credit

The Child and Dependent Care Tax Credit allows working parents to claim a tax credit for a portion of their childcare expenses. Families can claim up to 35% of qualifying expenses, with a maximum credit of $3,000 for one child and $6,000 for two or more children. The tax credit is designed to help offset the high cost of childcare for families who need care in order to work or attend school.

The Future of Childcare Costs in the USA

The trajectory of childcare costs in the United States is unlikely to change without significant policy interventions. As wages rise, regulatory requirements increase and the demand for high-quality early childhood education grows, the cost of childcare will likely continue to rise. This trend will continue to strain family budgets and limit workforce participation, particularly for women.

Advocates for affordable childcare are calling for increased government funding, expanded subsidies, and more public preschool options. The American Families Plan, introduced by the government in 2021, includes provisions for free preschool for all 3- and 4-year-olds, expanded childcare subsidies, and increased funding for Head Start programs. These initiatives aim to reduce the cost of childcare for millions of families and ensure that all children have access to early childhood education.

Final Words

The cost of childcare in the USA is an increasingly pressing issue for families, with prices varying significantly based on location, type of care, and specific needs. As more parents enter the workforce, the demand for affordable, high-quality childcare continues to grow, but rising operational costs, staffing shortages, and increasing regulations contribute to the rising fees.

While government assistance programs and state-specific initiatives aim to alleviate the burden for families, there remains a significant gap between what many parents can afford and the current cost of care. Moving forward, continued advocacy, investment in early childhood education, and reforms to make childcare more accessible will be essential to ensuring that every child receives the care they need while parents can work without financial strain.

Manage Childcare Costs With illumine

Reducing childcare costs can be challenging, but with illumine, childcare centers can streamline operations and optimize resources, ultimately saving time and money. illumine’s all-in-one childcare management software automates administrative tasks like billing, attendance tracking, and staff scheduling, reducing the need for manual work.

illumine’s parent-teacher communication tools help centers engage parents without the expense of paper reports or manual updates, while the lesson planning and assessment features enable teachers to focus more on child development rather than paperwork. By improving operational efficiency, illumine helps centers lower overhead costs, which can translate into more affordable childcare for parents.

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