Daycare Cost Trends: 2024–2026 Year-Over-Year Analysis
Infant center-based daycare costs have risen 13% over the past two years — from $1,090/month in 2024 to $1,230/month in 2026. The surge is slowing. But it hasn't stopped.
Last updated: March 2026 • Sources: ACF Child Care Market Rate Survey, EPI Child Care Data, BLS CPI
National Average: Infant Center-Based Care (Monthly)
Infant center care has risen from $930/month in 2022 to $1,230/month in 2026 — a 32% cumulative increase in four years. The steepest single-year jump was 2022–2023 (+11%) and 2024–2025 (+11% again). Growth is easing to 5% in 2026. But families starting care now are absorbing the full cumulative increase compared to parents who enrolled the same child four years ago.
Full-time center-based infant care, national average. 2022–2023 reflect peak pandemic-era increases; growth is easing.
Bar widths proportional to cost. 2022–2023 estimates from EPI Child Care Data. 2024–2026 from ACF Child Care Market Rate Survey.
Daycare Cost Growth vs. Overall Inflation (CPI)
Daycare costs have outpaced general inflation every year since 2021. In the 2024–2025 period, childcare rose 11% while CPI rose 2.9% — a gap of 8.1 percentage points. Labor accounts for 70–80% of center operating budgets, and childcare worker wages track state minimum wage laws more than general inflation. Until the structural staffing shortage resolves, daycare will continue outpacing CPI.
| Period | Daycare Costs | CPI (All Items) | Gap |
|---|---|---|---|
| 2022–2023 | +11% | +4.9% | +6.1 pts |
| 2023–2024 | +6% | +3.4% | +2.6 pts |
| 2024–2025 | +11% | +2.9% | +8.1 pts |
| 2025–2026 | +5% | +2.5% | +2.5 pts |
Daycare costs have outpaced general inflation every year since 2021. The driver is labor: childcare worker wages have risen faster than the overall wage index as states competed to retain staff after pandemic-era attrition. Wages make up 70–80% of center operating budgets.
States with Biggest Cost Increases (2024–2026)
Massachusetts, California, New York, Colorado, and Connecticut each rose 12–12.5% over two years — adding $2,000–$3,000 annually per family. Massachusetts now sits at $2,100/month, up from $1,866 in 2024. These states share strong minimum wage floors and high demand from dual-income professional households. If you're planning for a second child in these states, budget an additional 12–13% versus what you paid with your first child two years ago.
Infant center-based care, estimated 2-year change
States with Smallest Cost Increases (2024–2026)
Mississippi rose just 9.2% over two years ($595 to $650) — the national benchmark for slow growth. Alabama, Louisiana, Arkansas, South Dakota, and West Virginia each climbed 8.5–8.9%. Even with these increases, all six remain well below $700/month for infant care. Families in these states still pay roughly half the national average, making them the most insulated from the broader cost surge affecting other regions.
Infant center-based care, estimated 2-year change
State-level estimates derived from 2026 ACF Child Care Market Rate Survey data, applying published national YoY rates. Actual state-specific rates may vary by 1–3 percentage points. High-cost states track labor market trends more closely; lower-cost states absorb increases more gradually due to lower baseline wages.
Infant Center Care by State: 2024 vs 2025 vs 2026
The three-year table shows the full trajectory: states that were expensive in 2024 got more expensive, and states that were cheap stayed relatively cheap. DC went from roughly $2,170 in 2024 to $2,400 in 2026. Mississippi moved from $595 to $650. The absolute gap has widened. If you're considering a move for childcare affordability, the spread between the top and bottom states is at a decade high.
Monthly cost, full-time center-based infant care. 2024 and 2025 are estimates based on national ACF YoY rates. Full state table with filters →
| State | Est. 2024 | Est. 2025 | 2026 |
|---|---|---|---|
| DC Washington DC | $2,059 | $2,286 | $2,400 |
| MA Massachusetts | $1,887 | $2,095 | $2,200 |
| NY New York | $1,631 | $1,810 | $1,900 |
| CA California | $1,544 | $1,714 | $1,800 |
| CT Connecticut | $1,544 | $1,714 | $1,800 |
| WA Washington | $1,544 | $1,714 | $1,800 |
| RI Rhode Island | $1,459 | $1,619 | $1,700 |
| NJ New Jersey | $1,459 | $1,619 | $1,700 |
| MD Maryland | $1,373 | $1,524 | $1,600 |
| CO Colorado | $1,373 | $1,524 | $1,600 |
| NH New Hampshire | $1,287 | $1,429 | $1,500 |
| HI Hawaii | $1,287 | $1,429 | $1,500 |
| OR Oregon | $1,287 | $1,429 | $1,500 |
| VT Vermont | $1,287 | $1,429 | $1,500 |
| MN Minnesota | $1,201 | $1,333 | $1,400 |
| VA Virginia | $1,201 | $1,333 | $1,400 |
| IL Illinois | $1,201 | $1,333 | $1,400 |
| AK Alaska | $1,201 | $1,333 | $1,400 |
| DE Delaware | $1,030 | $1,143 | $1,200 |
| WI Wisconsin | $1,030 | $1,143 | $1,200 |
| ME Maine | $1,030 | $1,143 | $1,200 |
| PA Pennsylvania | $1,030 | $1,143 | $1,200 |
| MI Michigan | $944 | $1,048 | $1,100 |
| NV Nevada | $858 | $952 | $1,000 |
| NE Nebraska | $858 | $952 | $1,000 |
| OH Ohio | $858 | $952 | $1,000 |
| ND North Dakota | $858 | $952 | $1,000 |
| MT Montana | $858 | $952 | $1,000 |
| IN Indiana | $858 | $952 | $1,000 |
| IA Iowa | $858 | $952 | $1,000 |
| FL Florida | $858 | $952 | $1,000 |
| AZ Arizona | $858 | $952 | $1,000 |
| NC North Carolina | $815 | $905 | $950 |
| UT Utah | $815 | $905 | $950 |
| TX Texas | $772 | $857 | $900 |
| WY Wyoming | $772 | $857 | $900 |
| MO Missouri | $772 | $857 | $900 |
| KS Kansas | $772 | $857 | $900 |
| ID Idaho | $772 | $857 | $900 |
| GA Georgia | $772 | $857 | $900 |
| NM New Mexico | $730 | $810 | $850 |
| SC South Carolina | $730 | $810 | $850 |
| SD South Dakota | $730 | $810 | $850 |
| TN Tennessee | $730 | $810 | $850 |
| KY Kentucky | $686 | $762 | $800 |
| OK Oklahoma | $643 | $714 | $750 |
| WV West Virginia | $643 | $714 | $750 |
| LA Louisiana | $601 | $667 | $700 |
| AL Alabama | $601 | $667 | $700 |
| AR Arkansas | $584 | $648 | $680 |
| MS Mississippi | $558 | $619 | $650 |
What's Driving Daycare Costs Up
Childcare workers' median wage is around $14/hour — well below comparably skilled jobs like healthcare support or food service supervisors. Centers have had to raise wages to compete. Since labor is 70–80% of operating costs, a 10% wage increase pushes tuition up 7–8%. This won't resolve until wages find a sustainable equilibrium, which hasn't happened yet.
The childcare sector is still 40,000–50,000 workers below pre-pandemic levels. Centers running below licensed capacity charge the same tuition per child but spread fixed costs over fewer paying families. That's the same as a price increase. Until capacity returns, this structural cost persists.
Commercial lease costs have risen in nearly every metro since 2021. For centers that didn't own their space, lease renewals at 2024–2026 market rates added 8–15% to their facility costs. That passes through to tuition, usually spread over 12–18 months.
Several states expanded CCDF subsidies and launched retention bonus programs for childcare workers in 2024–2025. Federal childcare funding that kept many centers afloat through 2023 finally expired — but some states backfilled with their own dollars. The sector is stabilizing, not reversing. Expect 4–6% annual increases to be the new normal rather than the 10–15% spikes of 2022–2024.
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Daycare Cost Trends by State
See 2026 rates, age breakdowns, and CCDF subsidy info for your state.