How Much Childcare Costs by State in the USA in 2022
Source: Morning Brew
The childcare costs in the States are not affordable for families anymore. Most US families, who make the median income, cannot send their infant or toddler to daycare. It’s not because they don’t want to. It’s because they’re helpless in the face of inflation.
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.
These competitive expenses allow new daycares and preschools to deliver quality care at reduced prices. Here’s a roundup of childcare costs by state for daycare owners to take as a benchmark for setting their pricing.
Breaking Down Childcare Costs
Source: Zippia
In most US states, childcare costs exceed the cost of university tuition. The 2022 survey by Care.com throws up some interesting insights from parents:
- 80% wish that childcare was cheaper
- 44% quit their job to look after their infant
- 65% say they would return back to their career if childcare becomes affordable
- 59% struggle to pay for childcare
- 35% said childcare costs prevent them from expanding their family
- 79% wish employers were more supportive of working parents
- 72% believe that daycare has become more expensive post-pandemic
The average cost of childcare in the USA is $14760 annually. But hardly any state meets this threshold. Unbelievable, isn’t it? Scroll down to see the average annual cost of daycare where you live.
| State | Annual Childcare Cost |
|---|---|
| Alabama | $6001 |
| Alaska | $12120 |
| Arizona | $10948 |
| Arkansas | $6890 |
| California | $16945 |
| Colorado | $15325 |
| Connecticut | $15591 |
| Delaware | $11021 |
| Florida | $9238 |
| Georgia | $8520 |
| Hawaii | $13731 |
| Idaho | $7474 |
| Illinois | $13802 |
| Indiana | $12612 |
| Iowa | $10379 |
| Kansas | $11222 |
| Kentucky | $6411 |
| Louisiana | $7724 |
| Maine | $9449 |
| Maryland | $15335 |
| Massachusetts | $20913 |
| Michigan | $10861 |
| Minnesota | $16087 |
| Mississippi | $5436 |
| Missouri | $10041 |
| Montana | $9518 |
| Nebraska | $12571 |
| Nevada | $11408 |
| New Hampshire | $12791 |
| New Jersey | $12988 |
| New Mexico | $8617 |
| New York | $15394 |
| North Carolina | $9480 |
| North Dakota | $9091 |
| Ohio | $9697 |
| Oklahoma | $8576 |
| Oregon | $13616 |
| Pennsylvania | $11842 |
| Rhode Island | $13696 |
| South Carolina | $7007 |
| South Dakota | $6511 |
| Tennessee | $8732 |
| Texas | $9324 |
| Utah | $9945 |
| Vermont | $12813 |
| Virginia | $14063 |
| Washington | $14554 |
| West Virginia | $8736 |
| Wisconsin | $12567 |
| Wyoming | $10647 |
Source: World Population Review
1. Alabama
Annual childcare costs in Alabama
In Alabama, childcare for an infant comes in at an average annual cost of $6001. For a preschooler, the average cost is a little less – $5001 annually.
How do Alabama’s demographics impact childcare?
Because of a poverty rate of 16.9%, families in Alabama struggled with using tech to set up virtual classes during COVID-19, resulting in learning losses for 11% of children.
The Alabama government supports families with child care subsidies to assist with tuition payments. The mission of the program is to provide Alabama’s low and moderate-income families with equal access to affordable and quality child care services as they participate in work, educational, or training activities. Check out their website for eligibility information and how to apply.
2. Alaska
Annual childcare costs in Alaska
On average, a family spends $12120 on infant care and $10000 on toddler care, making its childcare services one of the costliest in America.
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. The Child Care Assistance Program provides assistance with child care expenses for eligible families who are working or participating in an education or training program. For more information check the government website
3. Arizona
Annual childcare costs in Arizona
The residents of Arizona pay $10948 annually for infant care, while preschool for a 4 or 5-year child costs nearly $8900.
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.
The Arizona Division of Child Support Services (DCSS) provides services to parents and caretakers who receive child support as well as parents who pay child support. Check their website for more information
4. Arkansas
Annual childcare costs in Arkansas
Yearly, parents in Arkansas spend $6890 on infant care and $5000 on a preschooler. The numbers may seem lower than the rest of the US states, but Arkansas has the 7th highest poverty rate, making childcare unaffordable for nearly 80% of its residents.
How do Arkansas’s demographics impact childcare?
Childcare spending accounts for 15-20% of their earnings, which isn’t surprising, seeing that a proportion of the population lives on the poverty threshold.
The Government Division of Child Care and Early Childhood Education ensures that Arkansas children and families have access to a safe, high-quality, developmentally appropriate early-learning environment.
5. California
Annual childcare costs in California
The Golden State ranks number 4 for childcare costs in the US, according to a 2022 survey. Families in California typically spend a whopping amount of $16945 annually on infant care.
How do California’s demographics impact childcare?
Half of Hollywood resides in California, which justifies the skyrocketing childcare prices. Families spend nearly 20-30% of their annual earnings on care for a single child. For details regarding childcare licensing and programs you can check the government website
6. Colorado
Annual childcare costs in Colorado
Full-time infant care in Colorado costs $15325 annually on average. The residents spend about $15000 on care for 4 and 5 years olds/year.
How do Colorado’s demographics impact childcare?
A 2022 report by the US Congress Joint Economic Committee says that Colorado has the third highest average infant care costs. Since minimum wage workers earn nearly $25000 annually, they spend 50% of it on childcare, which burns a hole in their pocket.
Colardo Childcare Program
Colorado’s child care quality rating program, Colorado Shines, works to connect parents and caregivers with quality early learning programs — programs that can have a big impact on a child’s development and future success. You can read the details on this Government website
7. Connecticut
Annual childcare costs in Connecticut
While infant care in Connecticut sets parents back by $15591 yearly, parents of 4 and 5-year-olds have a slightly more affordable option.
How do Connecticut’s demographics impact childcare?
On average, nuclear family households make about $45359 annually, making childcare bills stressful for them.
Connecticut childcare program
Care 4 Kids helps pay for child care costs for low to moderate-income families in Connecticut. You can quickly check if your family may be eligible for care of 4 kids and submit an application online.
8. Delaware
Annual childcare costs in Delaware
For a single infant, a family has to shell out $11021/year to place them in daycare. On the other hand, childcare for a preschooler sets them back by nearly $10000/year.
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.
Delarware childcare program
This service provides support for families with children to enable the caretaker to hold a job, obtain training or meet special needs of the parent or child. For eligibility, you can check here.
9. Florida
Annual childcare costs in Florida
The average cost of center-based care for a toddler in Florida is pegged at $8000/year. The infant care costs have gone through the roof, with parents setting aside $9238 annually to pay for daycare.
How do Florida’s demographics impact childcare?
The cost of raising a child has gone up exponentially in Florida. 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. More parents prefer tech-friendly childcares now, a trend that picked up in Florida and has spread throughout the US.
Florida childcare program
Florida’s School Readiness Program offers financial assistance to low-income families for early child education and care so families can become financially self-sufficient and their young children can be successful in school in the future.
10. Georgia
Annual childcare costs in Georgia
Infant care in Georgia costs an average of $8520 annually, while placing a five-year old in a preschool is likely to cost a family roughly $7000/year.
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.
Georgia childcare program
11. Hawai
Annual childcare costs in Hawaii
The state of beautiful beaches also has the highest cost of living in the US. Infant care in Hawai sets parents back by $13731 annually. Care for a preschooler, on the other hand, costs approximately $12000/year.
How do Hawaii’s demographics impact childcare?
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.
Hawai childcare program
The Child Care Connection Hawaii (CCCH) subsidy program helps low-income families to sustain their employment, educational efforts, and job training by paying a subsidy for their children who are in the care of DHS-approved childcare providers
12. Idaho
Annual childcare costs in Idaho
The high infant care costs in Idaho – coming in at $7474/year – and challenges while hiring teachers are concerning because they affect the quality of care the majority of children in Idaho receive.
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.
Idaho childcare program
The Idaho Child Care Program (ICCP) serves families with children under the age of 13 or over 13 if a child has a disability, providing child care assistance to working families by paying for a portion of child care. The parent’s share is based on the size of the family and the amount of their income.
13. Illinois
Annual childcare costs in Illinois
The yearly cost of center-based care for an infant in Illinois is $13802. The daycare cost for a 3-5 year old child is nearly $12000/annum.
How do Illinois’s demographics impact childcare?
Childcare services take away an astounding 52% of the median yearly income of families based there.
Illinois childcare program
The Illinois Child Care Assistance Program (CCAP) makes it possible for families and guardians who qualify to receive financial help.
14. Indiana
Annual childcare costs in Indiana
On an average, families pay $12612 for care for a single infant annually and the price of paying for a preschooler is nearly $10000/year.
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.
Indiana Childcare program
The Child Care and Development Fund is a federal program that helps low-income families obtain child care so that they may work, attend training or continue their education. The purpose of CCDF is to increase the availability, affordability and quality of child care. For eligibility click here.
15. Iowa
Annual childcare costs in Iowa
A childcare facility in Iowa charges $10379 annually for caring for an infant and an average of $8000 per annum for care for a toddler.
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, the majority of whom stay at home to look after the children.
Iowa Childcare program
Child Care Assistance (CCA) is available to the children of income-eligible parents who are absent for a portion of the day due to employment or participation in academic or vocational training or PROMISE JOBS activities. Assistance may also be available for a limited period of time to the children of a parent looking for employment. For eligibility click here.
16. Kansas
Annual childcare costs in Kansas
On average, childcare centers in Kansas charge $11222/year for routine infant care. For toddlers, the cost comes around to $10000 annually.
How do Kansas’s demographics impact childcare?
The median household income in Kansas is $61091 in 2022, with parents spending nearly 15% of their earnings to cover childcare costs for a single child.
17. Kentucky
Annual childcare costs in Kentucky
Parents in Kentucky expect to pay $6411 per year for center-based infant care and an average of $5000 per month for care for a preschooler. Kentucky has some of the lowest childcare costs by state for children aged 4-5 years old.
How do Kentucky’s demographics impact childcare?
Kentucky’s low cost of living makes it a terrific location to start profitable childcare, which is inaccessible to most families because of its paucity. There’s not a lot of competition in the childcare industry, giving you an opportunity to free parents from joining work by leaving their kids behind with you.
18. Louisiana
Annual childcare costs in Louisiana
Infant care costs $7724/year on average while care for a preschooler is likely to cost $6000 annually.
How do Louisiana’s demographics impact childcare?
Louisiana’s childcare costs are low compared to other US states, yet 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
Annual childcare costs in Maine
Childcare services in Maine are expensive to most families. While infant care costs $9449 per year, center-based care for preschoolers can cost $8000 yearly.
How do Maine’s demographics impact childcare?
Maine is one of the least populated US states. The 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
Annual childcare costs in Maryland
Maryland families have to cough up $15335 annually for infant care while for the care of a 4-year-old, they end up paying nearly $14000.
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.
21. Massachusetts
Annual childcare costs in Massachusetts
Infant care services in Massachusetts cost $20913 per year, which is an exorbitant sum. Center-based care, on the other hand, for a preschooler can cost nearly $18500.
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 $84,385, families spend nearly 20% of their earnings on childcare for their infants.
22. Michigan
Annual childcare costs in Michigan
Despite having a low cost of living, Michigan residents struggle to find high-quality, tech-friendly childcare options. Infant care for a single child in daycare costs $10861, while care for a preschooler is priced at $10000.
How do Michigan’s demographics impact childcare?
Contrary to regional patterns, Michigan’s population is dropping. Some economists are optimistic that Michigan can work to pass tax incentives to support childcare businesses. The state’s workforce continues to be primarily reliant on the declining US car sector.
23. Minnesota
Annual childcare costs in Minnesota
Childcare in Minnesota is more expensive than university tuition and rent combined. Infant care costs $16087 annually in the state while care for preschoolers costs $15000 per year.
How do Minnesota’s demographics impact childcare?
The Minnesota Department of Human Services helps connect parents with subsidy programs to cover the high charges of daycare reporting and other expenses as the family earnings are low in the state.
24. Mississippi
Annual childcare costs in Mississippi
A facility in Mississippi charges $5436/annum for infant care and $5000 per year for toddler care, making childcare cheaper than the rest of the US states.
How do Mississippi’s demographics impact childcare?
A minimum wage earner has to work for nearly 100 hours to cover the average cost of childcare in Mississippi.
25. Missouri
Annual childcare costs in Missouri
Parents in Missouri pay $10041 yearly for infant care and an average of $9000 for care for a four-year-old.
How do Missouri’s demographics impact childcare?
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
Annual childcare costs in Montana
Childcare centers in Montana charge $9518/year for infant care and $8000/year for toddler care, charging an average of $8350 across the state.
How do Montana’s demographics impact childcare?
The average household income in Montana is $56539, meaning parents have to spend 15-30% of their earnings on their children’s care.
27. Nebraska
Annual childcare costs in Nebraska
Parents are expected to pay $12571/annum for infant care in Nebraska and $10000 for toddler care, making it one of the most expensive US states for childcare.
How do Nebraska’s demographics impact childcare?
On average, Nebraskans make $60000 yearly, spending 20% of their earnings on childcare for a single child in the household.
28. Nevada
Annual childcare costs in Nevada
Infant care services cost $11408 yearly in Nevada, and toddler care is priced at $10000 annually.
How do Nevada’s demographics impact childcare?
The Silver State’s residents earn nearly $84000 annually, shelling out 7-15% of their income on childcare.
29. New Hampshire
Annual childcare costs in New Hampshire
A year of infant care in New Hampshire costs $12791. Toddler care comes in close at $10000 annually.
How do New Hampshire’s demographics impact childcare?
The median household income in New Hampshire is $77923. 17-20% of their annual income goes towards childcare.
30. New Jersey
Annual childcare costs in New Jersey
A year of infant care in New Jersey costs $12988. Toddler care, on the other hand, costs $11000.
How do New Jersey’s demographics impact childcare?
New Jersey is an expensive state, with the mean household income coming to $85245. Families in New Jersey pay some of the lowest portions of their salary, 10%.
31. New Mexico
Annual childcare costs in New Mexico
The cost of infant care yearly in New Mexico is $8617 and toddler care is priced at $7000/annum.
How do New Mexico’s demographics impact childcare?
The lack of reliable childcare in New Mexico results in existing childcare facilities making $570 million/per annum. Opening a licensed childcare center in the state is profitable due to many unregulated services having cropped up.
32. New York
Annual childcare costs in New York
The cost of infant care in New York is $15394/year and toddlers are cared for in facilities at the price of $14000 yearly.
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.
33. North Carolina
Annual childcare costs in North Carolina
The infant care costs in North Carolina are $9480/annum and for toddler care, it is set at approximately $8500/year.
How do North Carolina’s demographics impact childcare?
Because of low earning potential and high living costs, families spend 20-30% of their incomes on childcare.
34. North Dakota
Annual childcare costs in North Dakota
There are currently 4,000 childcare providers in North Dakota, including group homes and centers, charging $9091 for infant care.
How do North Dakota’s demographics impact childcare?
An average household comprises 2-4 family members, with the median income being $49,475 annually. Families spend a staggering 35% on childcare.
35. Ohio
Annual childcare costs in Ohio
At an average of $9697/year, childcare in Ohio costs more than the yearly college tuition.
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.
36. Oklahoma
Annual childcare costs in Oklahoma
Infant care in Oklahoma will cost families an average of $8576 per year for tuition at a daycare, while for four year olds, the centers charge an average of $7000 annually.
How do Oklahoma’s demographics impact childcare?
Since centers in Oklahoma have more amenities for working parents, such as bus tracking, it also causes the costs to go significantly higher.
37. Oregon
Annual childcare costs in Oregon
Childcare for parents costs nearly $13616 annually if they opt for a group home or a center-based service as opposed to a private center in Oregon, which costs more.
How do Oregon’s demographics impact childcare?
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.
38. Pennsylvania
Annual childcare costs in Pennsylvania
The financial impact childcare has on families in Pennsylvania is so severe that it keeps mothers out of work. They pay $11842 per annum for infant care and $10500 yearly for toddler care.
How do Pennsylvania’s demographics impact childcare?
According to recent statistics, the parents end up spending 20% of their annual earnings on daycare services.
39. Rhode Island
Annual childcare costs in Rhode Island
Infant care services charge $13696 and toddler care services charge $12000 yearly in Rhode Island.
How do Rhode Island’s demographics impact childcare?
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.
40. South Carolina
Annual childcare costs in South Carolina
The average childcare charges $7007 for infant care and $6500 for toddler care yearly in South Carolina.
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.
41. South Dakota
Annual childcare costs in South Dakota
The financial burden on parents varies in South Dakota because the US state has different childcare models, with parents paying $6511 yearly for infant care and $5500 for toddler care.
How do South Dakota’s demographics impact childcare?
The average earnings of a family in South Dakota are $37,574 annually. 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.
42. Tennessee
Annual childcare costs in Tennessee
Tennessee families pay $8732 annually for infant care. The costs for caring for preschool students is $6500/annum. Although it is slightly cheaper, it still makes a dent.
How do Tennessee’s demographics impact childcare?
The Tennessee Department for Children and Families helps connect parents with subsidy programs and daycare owners with assistance programs to streamline childcare budgets. Families typically pay through the nose, with childcare costing them 30% of their annual income.
43. Texas
Annual childcare costs in Texas
Childcare services in Texas are expensive compared to other states in the US. Parents shell out $9324 yearly for infant care and $8000/annum for toddler care.
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 $63826 yearly, over 10% of earnings are directed towards childcare.
44. Utah
Annual childcare costs in Utah
Childcare centers in Utah vary in cost depending on their staff experience and location, but on average, they charge $9945 yearly for infant care and $8200 annually for toddler care.
How do Utah’s demographics impact childcare?
Center-based childcare in Utah increased their pricing by 27% during COVID-19, making them inaccessible for nearly 20% of their population.
45. Vermont
Annual childcare costs in Vermont
Infant care services are priced at $12813 yearly and toddler care services cost $10400/year.
How do Vermont’s demographics impact childcare?
The average annual wages of a Vermont resident are $54,084, with childcare taking away 23.7% of their earnings.
46. Virginia
Annual childcare costs in Virginia
The average yearly cost of childcare for infants is $14063 a year. On the other hand, the yearly cost of toddler care is $12780 a year.
How do Virginia’s demographics impact childcare?
According to the Economic Policy Institute, infant care takes up 18.2% of a median family’s earnings in Virginia.
47. Washington
Annual childcare costs in Washington
The state average costs for childcare have risen from $14554 to $18237 annually after COVID-19.
How do Washington’s demographics impact childcare?
Washington families spend 20% of their average mean income annually on childcare. Parents face fewer childcare choices as the costs continue to rise.
48. West Virginia
Annual childcare costs in West Virginia
The average annual cost of childcare for infants in West Virginia is $8736. For toddlers, it is $7600.
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 $48037 yearly.
49. Wisconsin
Annual childcare costs in Wisconsin
Infant care in Wisconsin costs an average of $12567 yearly. Annual childcare for a four-year-old comes in at $10870.
How do Wisconsin’s demographics impact childcare?
Because of far few regulated childcare facilities in Wisconsin, people below the poverty line are left out. Residents spend 20% of their annual earnings on covering childcare costs.
50. Wyoming
Annual childcare costs in Wyoming
Annual childcare for an infant comes with an annual price tag of $10647. For toddlers, it is $8756.
How do Wyoming’s demographics impact childcare?
Households in Wyoming earn approximately $40000 annually and spend nearly 22% of their total income to place a child in a center.
Wrap up
Depending on the place where you live in the US, you may qualify for a variety of tax benefits and subsidies. To set up a profitable business and maximize the value provided to parents, sign up on Illumine.
With our childcare management platform, you can automate fee reminders, manage the billing, track attendance, and charge parents by the hour, week, or month. We also offer various payment options that parents can avail of, like UPI, debit card, credit card, etc. for safe online childcare payments.
As a result, more parents will enroll their children with you because you offer them ease, convenience, and efficiency – all in one powerful platform.
Take the paperwork out of childcare management to never chase parents for overdue payments ever again. Spend 3x less time on manual bookkeeping and more time on caring for your student’s well-being by booking a demo with Illumine today!
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