:max_bytes(150000):strip_icc()/GettyImages-1393418692-e4b1fa0ccff544e4a8baf476b206202b.jpg "Are You Paying Too Much for Child Care? See How Your State Stacks Up")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1393418692-e4b1fa0ccff544e4a8baf476b206202b.jpg)
Key Takeaways
- Vermont, New Mexico, Nevada, and Alaska are among the most expensive states for child care, infant care, and nanny services.
- The least expensive states for infant and child care include South Dakota, Iowa, Kansas, and North Carolina.
- Families can reduce their child care costs with subsidies and tax credits.
Child care can be expensive, especially in certain states. Around the U.S., the cost of daycares, preschools, and nanny services vary. Here’s how your state stacks up.
The Most and Least Affordable States for Child Care
When looking at the U.S. as a whole, parents pay the most for child care in Washington, D.C., at an average of $1,893 per month (that’s $22,714 annually).
When you take median local household income into account, though, the nation’s capital is actually one of the most affordable places in the nation for child care. Vermont, on the other hand, is the least affordable state for child care—it costs families an average of 16.57% of their median household income. In Washington, D.C., child care takes up less of the family’s budget, costing families an average of 9.46% their median household income. The most affordable state for child care is North Carolina, where it costs families an average of 8.48% of their median household income.
Based on the average percentage of median family income income (MFI), here are the most and least expensive states for child care
The Most Affordable States for Child Care
- North Carolina: 8.48% of the median family income (MFI)
- South Dakota: 8.54% of the MFI
- Iowa: 8.76% of the MFI
- Kansas: 8.82% of the MFI
- Alabama: 9.08% of the MFI
The Least Affordable States for Child Care
- Vermont: 16.57% of the median family income (MFI)
- Alaska: 15.56% of the MFI
- Nevada: 15.21% of the MFI
- Minnesota: 14.89% of the MFI
- New Mexico: 14.75% of the MFI
Fast Fact
Minnesota ranks among the most expensive states for infant and child care costs, but one of the most affordable states for hiring a nanny.
How You Can Save on Child Care Costs
Child care is probably going to take up a big chunk of your budget no matter what state you live in. Fortunately, there are ways to make it more affordable.
The Child and Dependent Care Credit is a tax credit that allows you to use an allocated amount of funds towards care-based expenses for children younger than 13 years of age. To claim The Child and Dependent Care Credit, make certain that you complete Form 2441 to submit along with your federal income tax return.
Nanny shares are when multiple families arrange to pay one nanny to take care of their children together. For example, a nanny might cost $20 per hour for one child, or $22 per hour with two children. If you found another family that’s willing to do a nanny share, you’d each only pay $11 per hour to the nanny. It’s a way for your child to get a good amount of individualized attention without paying for the full cost of a nanny on your own.
Revisit your budget on a regular basis to stay up-to-date with the demands of child care on your household income. At times, you might realize that you need to cut back on unnecessary purchases to make child care less of a burden on your finances, or you may decide to look for alternative child care options in your area. Staying on top of your monthly expenses can help reduce the amount of strain child care places on your wallet.
