Childcare Costs by State and the Tax Offsets That Actually Reduce Them
Childcare can cost as much as rent, and the price depends heavily on your state. Here's the latest federal state-by-state data, and the math for choosing between the dependent care account and the child care credit.
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📐 Verified Sep 29, 2026 against the Department of Labor Women's Bureau National Database of Childcare Prices (state-level estimates, 2022, the latest federal data), Public Law 119-21 (sections 70404 and 70405), IRS guidance and HHS program pages. State prices are DOL's weekly medians times 52, in each year's dollars; today's prices are likely higher. The tax example is simplified and ignores state taxes. This is general information, not tax advice. How we check numbers →
Full-time center care for one infant ran from about $6,171 a year in Mississippi to $25,480 in Washington, D.C., in 2022; the middle state was about $12,675. Two federal offsets cut the bill: a dependent care account shields up to $7,500 from tax, and the child care credit covers 20% to 50% of limited costs, but not the same dollars.
Numbers That Matter
| Rule or figure | What it says | Source | Verified |
|---|---|---|---|
| Center infant care, 2022 | About $6,171 a year in Mississippi to $25,480 in D.C.; about $12,675 in the middle state | DOL Women's Bureau, National Database of Childcare Prices | Sep 29, 2026 |
| Center preschool care, 2022 | About $10,088 a year in the middle state | DOL Women's Bureau, National Database of Childcare Prices | Sep 29, 2026 |
| Dependent care account, 2026 | $7,500 per household ($3,750 married filing separately), up from $5,000 | Public Law 119-21, sec. 70404 | Sep 29, 2026 |
| Child and dependent care credit, 2026 | 50% of costs at AGI up to $15,000, down to 35% by the mid-$40,000s, 35% up to $75,000 ($150,000 joint), then down to 20%; costs capped at $3,000 for one child, $6,000 for two or more; nonrefundable | Public Law 119-21, sec. 70405 | Sep 29, 2026 |
| Claiming the credit | Form 2441, with each provider's name, address and taxpayer ID; married couples generally both need earned income | IRS, Form 2441 | Sep 29, 2026 |
| Free and subsidized care | Head Start and Early Head Start serve eligible families at no cost; state child care subsidies are funded through the Child Care and Development Fund | HHS, Office of Head Start | Sep 29, 2026 |
What Childcare Costs in Your State
The table shows DOL's state estimates of the median price for one child in full-time care, converted to a yearly figure. Center care means a licensed childcare center; home-based means a licensed family childcare home. In 17 of the 45 places with 2022 data, center care for an infant topped $15,000 a year; the five most expensive were District of Columbia, Massachusetts, Minnesota, California and Colorado.
| State | Infant, center | Preschool, center | Infant, home-based | Data year |
|---|---|---|---|---|
| Alabama | $7,073 | $6,531 | $7,050 | 2022 |
| Alaska | $18,819 | $15,067 | $13,500 | 2022 |
| Arizona | $14,040 | $10,920 | $9,360 | 2022 |
| Arkansas | $7,670 | $6,630 | $5,980 | 2021 |
| California | $19,719 | $11,699 | $14,787 | 2022 |
| Colorado | $19,625 | $14,370 | $12,810 | 2022 |
| Connecticut | $18,200 | $14,820 | $13,000 | 2022 |
| Delaware | $14,575 | $10,934 | $9,447 | 2022 |
| District of Columbia | $25,480 | $20,410 | $20,800 | 2022 |
| Florida | $11,700 | $8,580 | $9,100 | 2022 |
| Georgia | $10,660 | $9,308 | $8,476 | 2022 |
| Hawaii | $19,020 | $13,680 | $10,800 | 2022 |
| Idaho | $8,653 | $7,294 | $6,760 | 2022 |
| Illinois | $14,473 | $9,837 | $10,804 | 2022 |
| Indiana | No state data since 2019 | — | ||
| Iowa | $8,631 | $7,437 | $5,819 | 2022 |
| Kansas | $8,181 | $7,155 | $6,254 | 2022 |
| Kentucky | $7,868 | $6,989 | $6,122 | 2022 |
| Louisiana | $7,973 | $7,326 | $7,107 | 2022 |
| Maine | $11,960 | $10,088 | $9,447 | 2022 |
| Maryland | $17,024 | $12,001 | $12,439 | 2022 |
| Massachusetts | $24,001 | $16,120 | $13,000 | 2022 |
| Michigan | $9,006 | $8,094 | $9,485 | 2022 |
| Minnesota | $20,280 | $16,068 | $10,660 | 2022 |
| Mississippi | $6,171 | $5,617 | — | 2022 |
| Missouri | $11,177 | $8,766 | $8,094 | 2020 |
| Montana | $11,482 | $10,260 | $9,253 | 2022 |
| Nebraska | $12,675 | $10,660 | $7,800 | 2022 |
| Nevada | $14,333 | $11,922 | $10,082 | 2022 |
| New Hampshire | $15,603 | $12,972 | $10,734 | 2022 |
| New Jersey | $16,314 | $15,755 | $10,108 | 2022 |
| New Mexico | No state data since 2019 | — | ||
| New York | $15,600 | $13,468 | $13,000 | 2022 |
| North Carolina | $10,531 | $6,959 | $9,047 | 2022 |
| North Dakota | $11,118 | $9,412 | $8,181 | 2022 |
| Ohio | $15,340 | $12,064 | $10,400 | 2022 |
| Oklahoma | $11,204 | $9,695 | $8,129 | 2022 |
| Oregon | $17,131 | $12,326 | $11,941 | 2022 |
| Pennsylvania | $11,331 | $10,010 | $8,580 | 2020 |
| Rhode Island | $15,059 | $12,754 | $13,233 | 2022 |
| South Carolina | $10,344 | $9,418 | $7,152 | 2022 |
| South Dakota | $7,800 | $7,093 | $5,325 | 2022 |
| Tennessee | $11,007 | $7,610 | $8,060 | 2022 |
| Texas | $9,620 | $8,684 | $8,528 | 2022 |
| Utah | $11,766 | $8,739 | $8,745 | 2022 |
| Vermont | $16,282 | $15,876 | $10,618 | 2021 |
| Virginia | $12,829 | $9,711 | $9,268 | 2022 |
| Washington | $18,580 | $12,951 | $13,200 | 2022 |
| West Virginia | $8,709 | $8,572 | $8,004 | 2022 |
| Wisconsin | $15,236 | $13,455 | $11,440 | 2022 |
| Wyoming | $8,381 | $8,092 | $7,741 | 2022 |
Source: U.S. Department of Labor, Women's Bureau, National Database of Childcare Prices, state-level estimates (2022 file). Weekly medians × 52, rounded; each state's latest year from 2019 to 2022. States collect these prices in market rate surveys every three years, and prices vary widely within a state, so treat them as a starting point and call providers near you.
The Two Federal Offsets
- Dependent care account (FSA): offered through an employer, it lets you pay up to $7,500 of care with pre-tax pay starting in 2026, which skips federal income tax and the 7.65% payroll tax (and usually state income tax). Money left at year-end can be lost, so elect what you're sure to spend.
- Child and dependent care credit: a percentage of up to $3,000 of costs for one child under 13, or $6,000 for two or more. The rate starts at 50% for incomes up to $15,000 and is 35% for most middle-income families. It's nonrefundable, so it can't be worth more than your federal income tax.
- The coordination rule: dollars run through the account reduce the credit's cost cap dollar for dollar. With $7,500 in the account, there's no credit left for one or two children.
Which Offset Wins
The comparison comes down to how many children are in care and your tax bracket:
- One child: the account usually wins. At the 12% bracket it saves about $1,474 on $7,500 ($7,500 × 19.65%), against a credit of $1,050 (35% of $3,000).
- Two or more children, 10% or 12% bracket: the credit usually wins: $2,100 (35% of $6,000) against $1,474 from the account.
- Two or more children, 22% bracket or higher: the account wins: $2,224 ($7,500 × 29.65%) beats the credit's $2,100 maximum.
- Low income with little tax owed: a nonrefundable credit may be worth less than it looks, so subsidies and free programs matter more.
Other Ways to Cut the Bill
- Head Start and Early Head Start: free early education for eligible families, from pregnancy to age five, run through local programs.
- State child care subsidies: funded through the federal Child Care and Development Fund and run by each state, with income limits and copays set by the state.
- Public pre-K: many states and school districts offer free pre-K for 4-year-olds, which can cut a year of preschool costs.
- Employer help: ask HR about the dependent care account, backup care and any employer-sponsored centers.
- Setting: in most states a licensed family childcare home costs less than a center; compare the infant columns above.
Worked Example: One Child, Then Two
- Their bracket: $120,000 − the $32,200 standard deduction = $87,800 of taxable income, in the 12% bracket.
- Year 1, one infant in center care: the middle state's price is about $12,675. The account saves about $1,474; the credit would be $1,050. They use the account, so care nets out to about $11,201.
- Year 3, an infant plus a preschooler: about $12,675 + $10,088 = $22,763. Now the credit is worth $2,100, more than the account's $1,474, so they skip the account at open enrollment and claim the credit: about $20,663 after the credit.
- If they were in the 22% bracket, the account's $2,224 would beat the credit even with two children.
Uses 2022 state medians (the latest federal data) with 2026 tax rules; ignores state taxes, state credits and subsidies.
Decision Rules
If this, then that
- If you have one child in care and a dependent care account at work → elect it; it usually beats the credit.
- If you have two or more children in care and you're in the 10% or 12% bracket → compare before open enrollment; the credit usually wins.
- If you're in the 22% bracket or above → the account usually wins, even with two children.
- If your income is low → apply for Head Start and your state's subsidy program before counting on a nonrefundable credit.
- If a provider won't give you a taxpayer ID → you can't claim the credit or get account reimbursements for that care.
- Always → keep receipts and elect only what you're sure to spend; unused account money can be lost.
Mistakes to avoid
- Using the account and the credit on the same dollars.
- Electing the account by habit after a second child starts care.
- Counting on the credit when you owe little federal income tax.
- Budgeting from 2022 prices without calling local providers.
- Skipping Head Start or subsidy applications because of waitlists.
Related: the 2026 family tax map covers the child tax credit too; kid account choices covers saving for a child; the new baby checklist covers the first year; and the Budgeting & Saving hub collects the rest.