Daycare Cost Changes 2025 to 2026
Infant center care rose 5% nationally — from $1,171/month to $1,230/month. The rate of increase slowed. But costs kept climbing. Here's what changed by care type.
Last updated: March 2026 • Sources: ACF Child Care Market Rate Survey, BLS Child Care CPI, HHS Administration for Children and Families
2025 vs 2026 Childcare Costs by Type
Infant center care rose from $1,171/month in 2025 to $1,230/month in 2026 — a $59/month increase that adds $708 to your annual bill. The 5% rate was the smallest increase since 2021, down from 11% in 2025. Nannies saw the same 5% uptick, hitting $3,100/month nationally. Every care type increased; none decreased. If your budget was set in 2024, assume you're now underfunded by 15–17%.
National averages, full-time care. Your state will differ — use the calculator above for a state-specific number.
| Care Type | 2025 (monthly) | 2026 (monthly) | Change |
|---|---|---|---|
| Center-based: Infant (0–12 mo) | $1,171 | $1,230 | ▲ +5% |
| Center-based: Toddler (1–2 yr) | $1,028 | $1,080 | ▲ +5% |
| Center-based: Preschool (3–5 yr) | $876 | $920 | ▲ +5% |
| Home-based (family day care) | $875 | $920 | ▲ +5% |
| Nanny (full-time, in-home) | $2,950 | $3,100 | ▲ +5% |
| Au pair (avg total cost) | $1,800 | $1,900 | ▲ +6% |
| After-school care (part-time) | $285 | $300 | ▲ +5% |
| Summer camp/summer care | $1,100 | $1,160 | ▲ +5% |
Annual cost = monthly × 12. Nanny annual cost does not include employer payroll taxes (~8–10% on top).
Biggest Increases (2025 to 2026)
Washington DC saw the steepest jump — from $2,640 to $2,800/month (6%), adding $1,920/year to an already extreme bill. Massachusetts, California, Colorado, and Washington state each climbed 5%, adding $1,200–$1,500/year per family. High-cost states track labor market pressures most directly: when state minimum wages rise and competition for childcare workers intensifies, providers raise rates within months.
Infant center-based care, estimated annual increase
Smallest Increases (2025 to 2026)
Mississippi's increase was just 3% — from $630 to $650/month — adding only $240 to the annual cost. Arkansas, Alabama, and Louisiana each rose 4%. Low-cost states absorb wage pressures more slowly because their baseline wages are already low, leaving less room for compression. If you're in one of these states, your 2026 childcare bill is still far below the national average even after the increase.
Infant center-based care, estimated annual increase
Why Costs Keep Rising
Childcare workers earn $14–$16/hour nationally — wages that have risen as states raise minimum floors but still lag competing service-sector jobs. Staff account for 70–80% of a center's operating budget, so every $1/hour wage increase translates directly to higher monthly rates. The $24 billion ARPA stabilization grants that held prices down through 2023 have expired, and no comparable federal replacement has passed.
Childcare workers earn a median of $14–$16/hour nationally. That's what you're paying when you pay for daycare — the cost per child per hour translates directly to what it takes to pay staff, cover rent, and keep the lights on. As minimum wages rise and the labor market stays tight, prices follow.
The ARPA stabilization grants ($24 billion) that held prices down from 2021–2023 expired. No comparable federal funding replaced them. States are handling it differently: New Mexico and Vermont built out state-funded programs. Most states haven't. Until that changes, expect 4–6% annual increases to continue.
Common Questions
Does the 5% average increase apply to all states?
No. High-cost states (Massachusetts, California, DC, Colorado) saw 5–8% increases. Low-cost states (Mississippi, Arkansas, Alabama) saw 2–4%. The national average of ~5% masks significant variation. Use the daycare cost calculator to see your specific state's current rates.
Is there any relief coming in 2026 or 2027?
Nothing at the federal level appears imminent. A handful of states expanded their subsidy programs in 2026 using increased CCDF allocations. If your income is under 85% of state median income, check whether your state's subsidy program has expanded — eligibility thresholds changed in several states. The subsidy calculator shows current eligibility by state.
How does the 2025–2026 increase compare to earlier years?
The 2025–2026 increase of ~5% is the smallest year-over-year change since 2021. In 2024–2025, costs rose about 11%. In 2023–2024, about 6%. In 2022–2023, 11% again. The pace has slowed. But cumulative costs are up about 20% from 2022 — that's the number families feel. See the full daycare cost trends 2024–2026 for the multi-year picture.
More Cost Tools
Data Sources
Child care cost data: U.S. Department of Health and Human Services, ACF Child Care Market Rate Survey (annual, all 50 states and D.C.). Year-over-year change estimates: BLS Child Care CPI sub-index, Economic Policy Institute Child Care Costs data. State-level variation: CCDF state plans and rate schedules (2024–2026).