How Much Does Daycare Cost in 2026? A Real-World Breakdown

The Short Answer

In the United States, full-time daycare costs between $800 and $2,000 per month for most families. Infants cost more. Big cities cost more. Montessori and private programs cost more.

But averages hide the reality. A parent in Austin, TX might pay $1,200/month for a toddler spot that costs $2,400 in Brooklyn. The only number that matters is what providers near you actually charge.

Cost by Age Group

Your child's age is the single biggest factor in daycare cost — because younger children require more staff per child.

Infants (0–12 months): $1,000–$2,200/month

State licensing typically requires one caregiver for every 3–4 infants. That staffing ratio drives the price up significantly.

Toddlers (1–3 years): $900–$1,800/month

Ratios relax slightly (1:4 or 1:5 in most states), and costs come down with them.

Preschool (3–5 years): $700–$1,400/month

With ratios around 1:8 to 1:10, preschool-age care is typically the most affordable tier.

These ranges reflect licensed center-based care. Home-based programs often cost 10–30% less.

Cost by Program Type

Not all daycare is the same, and the type of program affects pricing significantly.

Traditional Daycare Centers

$800–$1,600/month

The most common option. Large facilities with structured schedules, multiple classrooms, and state licensing oversight. Pricing is straightforward — you'll usually see monthly or weekly rates posted.

Montessori Schools

$1,000–$2,500/month

Montessori programs tend to cost more due to specialized materials, trained Montessori-certified teachers, and lower student-to-teacher ratios. Half-day Montessori programs (common for ages 3–6) can be more affordable at $600–$1,200/month.

Home-Based / Family Daycare

$600–$1,200/month

A caregiver watches a small group (usually 6–12 children) in their home. Lower overhead means lower cost. Quality varies widely — check licensing and references carefully.

Preschool (Part-Time)

$300–$800/month

Many preschools offer 2–3 day or half-day programs. Great if you have flexible work or supplemental care, but not a full-time solution.

Nanny or Nanny Share

$2,000–$4,000/month (solo) | $1,200–$2,500/month (shared)

The most expensive per-family option, but you get one-on-one care in your own home. Nanny shares split the cost with another family.

Cost by Location

Geography matters enormously. Here's what full-time toddler care looks like in different markets:

• Austin, TX: $900–$1,500/month
• Dallas, TX: $850–$1,400/month
• San Francisco, CA: $1,800–$2,800/month
• New York City, NY: $1,500–$2,500/month
• Portland, OR: $1,100–$1,700/month
• Rural areas: $500–$900/month

Urban centers with high cost of living and strong licensing requirements tend to be the most expensive. Suburban and rural areas offer more affordable options but may have fewer choices.

The Hidden Costs Nobody Mentions

The monthly tuition is rarely the complete picture. Watch for:

Registration fees: $50–$300, usually annual and non-refundable.

Supply fees: $25–$100/month for art supplies, snacks, or curriculum materials.

Late pickup fees: $1–$5 per minute after closing. This adds up fast.

Holiday closures: Most centers close 5–15 days per year. You still pay tuition, but you need backup care.

Summer surcharges: Some programs increase rates in summer due to higher staffing needs.

Waitlist deposits: Popular programs may charge $50–$200 just to hold your spot on the waitlist.

Always ask for the total annual cost, not just the monthly rate.

How to Make Daycare More Affordable

Dependent Care FSA

If your employer offers a Dependent Care Flexible Spending Account, you can set aside up to $5,000 pre-tax per year for childcare. That's an immediate tax savings of $1,000–$1,500 for most families.

Child and Dependent Care Tax Credit

You can claim 20–35% of up to $3,000 in childcare expenses ($6,000 for two or more children) as a federal tax credit.

State Subsidies

Many states offer childcare assistance for qualifying families. In Texas, the Texas Workforce Commission administers subsidized childcare for families meeting income requirements. Check your state's program — income thresholds are higher than most people expect.

Employer Benefits

Some employers offer childcare stipends, backup care programs, or on-site daycare. Ask your HR department — these benefits are becoming more common.

Sibling Discounts

Many centers offer 5–15% off for a second child. Always ask.

Negotiate Start Dates

If your child is close to aging up (e.g., turning 1 soon), ask if you can pay the toddler rate from the start. Some programs are flexible.

What You're Actually Paying For

Daycare is expensive because childcare is labor-intensive. Here's where your money goes:

• Staff wages and benefits: 60–70% of operating costs
• Rent and facilities: 10–20%
• Food and supplies: 5–10%
• Insurance and licensing: 5–10%
• Everything else: curriculum, training, maintenance

When a center charges $1,200/month, roughly $800 of that goes directly to paying the humans who care for your child. The margins in childcare are razor-thin — most centers operate on 5–10% profit margins. The high cost isn't greed; it's the reality of paying people to keep small children safe and engaged all day.

How to Compare Costs Effectively

Don't just compare sticker prices. Consider:

1. What's included? Some programs include meals, diapers, and sunscreen. Others charge extra for everything.

2. Hours of operation. A center open 7am–6pm offers more value than one open 8:30am–3pm if you work full-time.

3. Calendar. Count the closure days. More closures mean more backup care costs.

4. Quality indicators. A program that costs $200 more per month but has low turnover, experienced teachers, and clean inspection reports may save you the cost and stress of switching later.

5. Location. A cheaper program 30 minutes away costs you an hour of driving every day. Factor that in.

The Bottom Line

Daycare is likely one of the biggest line items in your family budget — often rivaling rent or a mortgage payment. The key is knowing what's actually available near you and what it really costs, not relying on national averages.

Search daycares near you on CareCompass to see real tuition rates, compare programs side by side, and find the best fit for your family and your budget.