How much does home daycare cost? (2023)

How much does home daycare cost? (1)

How much does day care at home cost?

If you are planning to open your own day care, how much should you charge?

If you are looking for childcare at home, how much should you expect to pay?

Home day care costs can vary significantly from state to state, county to county, and even by facility. This can make it difficult for parents who need access to childcare to find the best price for their specific area.

To help you learn more about day care home costs, we created this guide to day care home costs in the United States. We highlight the top factors that affect childcare costs and help you decide how much you should pay for childcare at home in your area.

Identifying the cost drivers for family day care homes

When it comes to understanding the cost of in-home childcare, there are seven important factors to consider:

  1. Location
  2. Licensing and Accreditation
  3. Experience
  4. age of the child
  5. Std.
  6. deliveries
  7. Essen

To ensure you're getting a fair childcare home deal, you need to understand how these seven factors contribute to the overall cost. In the following we take a closer look at each of these cost drivers individually.

Daycare location

The location of the daycare is one of the main factors that determine the cost of childcare. In general, day care homes become more expensive in states with higher real estate costs and a higher cost of living. In states where ownership is cheaper, you should expect to pay comparatively less for daycare.

Find your condition

The national non-profit organization known asConscious Childcare of America (CCAA)is committed to providing quality and affordable child care services in the United States. As part of a 2019 report, the CCAA released data on the average annual cost of childcare at home for a single infant and for an infant plus a four-year-old in 47 states.

(Video) How much to Charge for Childcare? How to Set up Your Daycare Rates?

Check the chart below and find out your state to see how much you should be paying annually for child care based on where you live.

ConditionAnnual costs of the child in the household
Care: baby only
Annual expenses from home
Child Care: Single Baby +
4 years
Alabama6.500 $12.740 $
Alaska$8.91716.863 $
Arizona$7.37614.311 $
Arkansas5.281 $9.524 $
California10.609 $20.593 $
Colorado10.400 $19.760 $
Connecticut11.180 $21.736 $
Delaware$7.87614.851 $
Florida$8.07014.624 $
Georgia7.309 $13.346 $
Hawaii9.048 $17.808 $
Idaho$7.39614.422 $
Illinois$8.61616.569 $
Indiana$6.92213.052 $
Iowa$7.23414.081 $
Kansas$7.38413.884 $
Kentucky6.240 $12.240 $
Louisiana$7.54014.040 $
Maine$9.36017.940 $
Maryland10.858 $19.173 $
Massachusetts13.184 $25.394 $
Michigan$7.00613.621 $
Minnesota$8.47616.224 $
Mississippi4.183 $$8.004
measurements$5.720010.682 $
MontanaNot reportedNot reported
Nebraska12.480 $24.960 $
Nevada$8.89217.058 $
New Hampshire9.542 $18.708 $
New JerseyNot reportedNot reported
New Mexico$7.93715.431 $
NY10.972 $21.112 $
North Carolina$7.41213.960 $
North Dakota$7.67715.067 $
Ohio$7.59214.038 $
Oklahoma$7.10113.371 $
Oregon9.153 $17.491 $
Pennsylvania$8.71216.673 $
Rhode Island9.900 $18.711 $
South Carolina$5.72011.180 $
Dakota del SurNot reportedNot reported
Tennessee6.360 $12.110 $
Texas$7.94015.722 $
Utah$7.49814.182 $
Vermont$8.69416.958 $
Virginia10.504 $19.396 $
Washington11.208 $20.712 $
West Virginia6.159 $12.011 $
Wyoming$8.22415.917 $

The federal states with the lowest costs for child day care at home are:

  1. Mississippi
  2. Arkansas
  3. measurements
  4. South Carolina
  5. West Virginia

The federal states with the lowest costs for child day care at home are:

  1. Massachusetts
  2. Nebraska
  3. Washington
  4. Connecticut
  5. NY

Licensing and Accreditation Status

State-licensed and recognized day-care providers are often more expensive than informal day-care centers that are operated without a license.

That doesn't necessarily mean that you should look for an unlicensed daycare, however, as they cost less money.

The family daycare licensing process helps ensure that childcare providers across the country are appropriate caregivers for young children. Government regulators enforce requirements such as CPR and first aid training, home environment inspections, medical and background checks for caregivers and other family members in the home, staffing and other factors that directly affect your children's safety.

supplier experience

Most child care providers set their rates based on their own experience and the unique values ​​they bring to the table.

If the childcare worker is a young local parent with a college education and some basic childcare skills, they will likely charge less than an experienced childcare worker with a degree in psychology and years of experience in early childhood education.

That being said, a highly qualified nanny is definitely worth the extra cost. Trained childcare professionals have spent years studying the cognitive development of young people and figuring out how to maximize their learning while creating a structured and caring environment.

age and needs of the child

Childcare is a hands-on service, and children need the right level of individual attention to reach their full potential. HeUS Department of Human Resourcespublishes recommendations for staffing ratios based on children's ages and group size.

For toddlers, a staff ratio of 1 caregiver to 3-4 toddlers is recommended, with a maximum group size of 8 children.

(Video) How Much Money You Can Make As A Child Care Business Owner

For small children from 12-28 months, a maximum staff ratio of 1:4 with a maximum group size of 12 children is recommended.

For children aged 21-36 months, a maximum staff ratio of 1:6 with a maximum group size of 12 children is recommended.

A staff ratio of 1:10 with a maximum group size of 20 children is recommended for children aged 2-5 years.

Once they reach kindergarten age, a staff ratio of 1:12 is recommended and the group size can be up to 24 children.

Most daycare centers follow some version of these recommendations. As a result, childcare costs more for younger children because they need more vigilant supervision. Many family daycares offer different pricing packages depending on the age of the child. In some states, day care providers are required to care for children under a certain age. Therefore, make sure that any provider you choose complies with your state's laws.

Planning considerations for childcare staffhave changed due to the COVID-19 pandemic. Centers are encouraged to hire additional staff to fill in for existing members if they become ill or have to stay home to care for sick family members. While staffing levels have not changed, the need forImplementing social distancing strategies as directed by the CDCit could mean less space for children in centers across the country.


Day care costs can vary depending on the number of hours per day you plan to leave your child in day care. Most family day care centers open between 7.30am and 8.30am. M. and they close between 5:30pm and 6:30pm. M. If you drop off your child later or pick them up earlier, you may qualify for a lower fare.



Depending on what they offer, some day care centers charge additional fees for aids in addition to the normal childcare fees. If your daycare provides things like baby wipes, diapers, laundry services, toiletries (soap, hand wash, sunscreen), or artist supplies, you may pay more to offset some of these costs.


Most day care centers have a system in place to provide meals for children.

You have the option to have the daycare provide your child with meals throughout the day or pack a lunch each day with additional snacks for your child.

If you choose to have the daycare provide meals for your child, you will have to pay a little more with it. This is especially true if your child has dietary needs that may require childcare providers to make special arrangements or develop new skills.

Break everything up for your family

Looking at the annual cost of home day care in your state can seem a bit overwhelming at first. Therefore, it's important to break them down into monthly or weekly budget items that are easier to manage.

Most daycares also quote prices as weekly or monthly rates, so know the conversions ahead of time to avoid being surprised. How to calculate weekly rates from the dates given above.

Weekly cost per child

Start with the average annual cost of child care in your state. If you lived in Florida it would be $8,070.

Then divide that number by 52 to get the weekly rate.

$8,070 divided by 52 weeks equals $155/week.

Monthly cost per child

If you plan to pay your childcare expenses each month, you'll need to calculate your rate differently.

(Video) Is Paying for Childcare Worth It? Daycare, Nanny, or Stay-at-Home?

Start with the same average annual child care cost in your state. Let's say you live in Rhode Island, so the average annual baby care cost is $9,900.

Then divide that number by 12 to get the monthly fee.

$9,900 divided by 12 is $825, so expect around $825/month.

Procare offers software solutions for day care at home

Procare is affordableChild care management solutionfor centers of all sizes and offers a free "basic" version and a more robust version that starts at just $25/month.

When looking for the best child care option for your family, choose a center that uses Procare to automate billing and encourage parent engagement through regular meaningful communication. Tell your childcare worker about the benefits of Procare, including a more engaging experience for parents like you.

Facilities that use Procare spend less time on administrative tasks and more time on care and education, resulting in better outcomes for your child. As a parent, you benefit from features such as automatic billing, multiple payment options and streamlined communication with your child's daycare.

Request a demo

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(Video) How to start a Home Daycare in 2022 | Is starting a Home Daycare hard?


What are the disadvantages of an in home daycare? ›

Home daycare cons:

Kids get sick more often in group childcare settings. Some home daycare providers don't have formal schooling in early childhood education. There's no caregiver supervision, and usually less stringent licensing requirements. Many are closed for holidays and vacations.

What is the cheapest form of child care? ›

The cheapest option for child care is to rely on family. Most parents rely on some degree of family care during the year, but fewer rely solely on family members for regular child care.

What percent of income should go to daycare? ›

According to the Department of Health and Human Services, childcare is affordable if it costs households no more than 7% of their income. The average cost of childcare was not affordable for families making less than $75,000.

How much can I charge for in home daycare in Texas? ›

In-home daycare costs can vary significantly from state to state, from county to county, and even on a per facility basis.
Find Your State.
StateAnnual Cost of In-home Child Care – Single InfantAnnual Cost of In-home Child Care – Single Infant + 4-year-old
48 more rows
Jun 9, 2020

How much should I pay my mom to babysit? ›

According to SitterCity, babysitters average $17.50 per hour. Nannies can make $25, but your parents may be happy with a more affordable (to you) weekly rate. The other thing to know is that paying a parent does have tax implications if they meet certain earning thresholds.

Is it better to keep baby home or daycare? ›

The take home message...

Children who attend child care have the same outcomes as children who are cared for at home. Whether a child attends daycare or not, it is the family that has a major impact on their child's development, with the parents' interactions with the child being a critically important factor.

What age is best for daycare? ›

Research has shown that the best age for a child to start daycare at is at least 12-months-old. Now, just because that is the earliest age many people say is acceptable, that does not mean that your child will be ready for daycare that early.

Why is daycare so expensive? ›

It's labour-intensive, and that makes it expensive. Then add rent, energy, etc. And other countries don't have those ratios? They do, but the ratios for younger children – one- and two-year-olds – aren't as tight.

What age group is child care most expensive for? ›

On average, child care for an infant costs 61 percent more than for a preschooler, yet child care subsidy rates are only 27 percent higher for infants than preschoolers.

How do people afford 2 in daycare? ›

Ask for a sibling discount.

Some daycares offer a discount for a second child. Your daycare may be one of them, which can help you save money. Ask what the sibling discount is the next time you take your child in. While the sibling discount may not be a whole lot, every little bit can help.

How do people afford full time childcare? ›

Most states have programs that provide financial assistance for child care to low-income families. Typically, you pay a portion of your child's day care costs based on the size of your family and income, and the state program pays the rest.

How much do most daycares pay? ›

National estimates for Childcare Workers:
Percentile10%50% (Median)
Hourly Wage$ 8.91$ 13.22
Annual Wage (2)$ 18,540$ 27,490

Is a small daycare profitable? ›

According to IBISWorld, the average profit margin for a daycare business is around 15%. That's higher than the average for most other industries! If you're thinking about starting a daycare business, know that you are getting into a very profitable and in-demand industry.

How many kids can you babysit without a license Texas? ›

In Texas, you can legally care for up to three children at once without a license if you are babysitting in your own home. The law also states that if you are providing childcare outside of the home, you must obtain a professional license from the Department of Family and Protective Services (DFPS).

Should grandma get paid for babysitting? ›

While most grandparents won't expect to be paid for occasional babysitting, it is reasonable for them to be paid if they provide ongoing or full-time care for the kids. After all, babysitting is a job. As such, it requires them to fulfill certain responsibilities and to keep a schedule.

Is $20 too much for babysitting? ›

Factors That Impact Rates

According to UrbanSitter, the national average hourly rate for a babysitter in 2022 was $20.57 for one child and $23.25 for two kids. However, how much you pay your babysitter depends on a variety of factors, including: Where you live. The babysitter's level of experience and education.

Can I claim babysitting on my taxes? ›

If she's self-employed, she should: Enter her babysitting income on Schedule C. Deduct expenses she incurred to earn her babysitting income on Schedule C.

Are kids of stay at home moms more successful? ›

Children who have a parent who stays at home may achieve better academic performance. One study found that 10th-grade children who had a parent stay at home when they were young achieved better grades in school than those who had working parents working away from home during early childhood.

How many hours should a child be in daycare? ›

The standard recommendation by the AAP is infants and toddlers up to 15 months spend two hours or less in day care, while toddlers from 16 to 24 months can spend up to four hours each day. Older children from 3 to 5 should spend only four to five hours at a time.

Do kids do better with a stay at home mom? ›

A recent study found that the benefits of having a parent at home extend beyond the early years of a child's life. In the study, the educational performance of 68,000 children was measured. They found an increase in school performance all the way to high school-aged children.

Is daycare stressful for kids? ›

Numerous studies report a link between daycare centers and stress. The more time young children spend in childcare facilities, the more likely they are to develop abnormal stress hormone profiles. What's normal?

Is daycare good or bad for toddlers? ›

Your child's experience at daycare provides an invaluable opportunity for them to develop their budding social skills as they interact with others. One of the biggest advantages of daycare is your child's ability to build relationships with other children in a supervised environment.

At what age can you leave a baby with a sitter? ›

There is no minimum age at Sitters.

Do kids get cheaper after daycare? ›

One thing that generally does get cheaper after age 5 is childcare: If your kid goes to public school, a once-hefty pre-K bill simply vanishes, possibly freeing up hundreds of dollars a month.

Why is babysitting better than daycare? ›


Parents feel that the child will be more comfortable in the surroundings that they are familiar with and that has all the things they need. Parents also have more control when a nanny is taking care of the child since the nanny can give them constant updates and send pictures to them.

What are the disadvantages of daycare for child? ›

  • Attending a childcare facility often results in illness. ...
  • There's less individual attention.
  • Waiting lists are common.
  • Childcare programs can be costly.
  • Childcare facilities often face high staff turnover, which can make it difficult for children to form healthy attachments.
Feb 13, 2019

What is the hardest year to take care of a child? ›

In fact, age 8 is so tough that the majority of the 2,000 parents who responded to the 2020 survey agreed that it was the hardest year, while age 6 was better than expected and age 7 produced the most intense tantrums.

What are the three most expensive expenses for a child? ›

Housing is the biggest expense associated with raising kids, followed by paying for food. Following those two categories of expenses, parents spend the most on childcare, transportation, healthcare, clothing, and miscellaneous spending.

How much should I charge to take care of 2 kids? ›

UrbanSitter's 2022 National Childcare Rate Survey found that child care costs increased by 11% from 2021 to 2022 alone. The national average was $20.57/hr for one child and $23.25/hr for two children.

How do I make a daycare budget? ›

  1. Calculate your Revenue. Start by determining your total monthly revenue. ...
  2. Determine Monthly Costs. The next step is to determine your monthly expenses. ...
  3. Determine Profit & Loss. If you completed the first two steps this section should be pretty easy. ...
  4. Create an Emergency Fund. ...
  5. Fill out your Budget.
Apr 28, 2021

How to make money owning a daycare? ›

4 Ways to Increase Profit at Your Childcare Center
  1. 1 - Enrollment vs. Capacity. ...
  2. 2 - Monetize Your Facility. ...
  3. 4 – Weekly Billing. ...
  4. 1 – Toys, Materials, & Equipment. ...
  5. 2 – Hiring Quality Staff. ...
  6. 3 – Improve Business Efficiency. ...
  7. 4 – Stay Organized. ...
  8. Conclusion.
Apr 1, 2019

How much does government pay for childcare? ›

Tax-Free Childcare allows eligible working families to claim 20% of their childcare costs, up to a maximum of £2,000 per child per year (£4,000 for a child with a disability), from the Government.

How much does the government pay for 30 hours childcare? ›

You can get 30 hours free childcare at the same time as claiming Universal Credit, tax credits, childcare vouchers or Tax-Free Childcare. Parents can get up to £2,000 per child, per year, towards their childcare costs or up to £4,000 for a child with a disability.

Can I get help with childcare if I work full time? ›

You can apply for the childcare element of Working Tax Credit if you: Work at least 16 hours a week (if you're a couple, you both need to work at least 16 hours a week). Pay for registered or approved childcare.

Where do childcare workers get paid the most? ›

Child care workers in Dartmouth make the most money. New Bedford and Falmouth are other high paying cities for child care workers. A child care worker will most commonly be promoted to cashier.
1. Washington.
Total Child Care Worker Jobs:1,681
Highest 10 Percent Earn:$58,000
3 more rows
Apr 6, 2021

Are family daycares profitable? ›

You do have the potential to earn much more than you would working in a centre but this will again depend on the number of hours and days you work, if you take on additional school age children (up to 3 if you already have 4 under 5) for before and after school care or vacation care,if you work on weekends or outside ...

Will childcare workers get paid more? ›

The Orders will commence on 15 September 2022, providing new minimum hourly rates as follows: €13 for Early Years Educators/School-Age Childcare practitioners. €14 for Early Years Lead Educators /School-Age Childcare co-ordinators.

What are the challenges faced by children in care homes? ›

Children in residential care facilities face a myriad of challenges that range from a lack of attachment with caregivers, peer relationships to a lack of proper adult guidance, identity, and a family with shared values.

What are the disadvantages of daycare? ›

  • Attending a childcare facility often results in illness. ...
  • There's less individual attention.
  • Waiting lists are common.
  • Childcare programs can be costly.
  • Childcare facilities often face high staff turnover, which can make it difficult for children to form healthy attachments.
Feb 13, 2019

What is a weakness for a daycare? ›

A childcare business may have weaknesses relative to competitors, such as a relatively small physical facility, previous financial or legal issues, and lack of experience. Other important and costly requirements can be recruitment and training of qualified and trustworthy employees.

What is the negative effects of day care on children? ›

The more time kids had spent in day care, the more likely they were in primary school to show aggression, have symptoms of attention-deficit/hyperactivity disorder (ADHD), and experience anxiety and depression, according to information from the parents.


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