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Child Care Aware of America reported that U.S. child care averaged $13,184 per child in 2025, with center-based infant care averaging $15,636. Families may reduce costs by comparing care settings and schedules, checking employer dependent-care benefits and reviewing tax-credit and assistance eligibility. A May 2026 federal rule change returned child care assistance co-payment decisions to states.
U.S. child care averaged $13,184 per child in 2025, while center-based infant care averaged $15,636 a year, according to Child Care Aware of America. In 2026, families also face changed rules on employer dependent-care benefits and state decisions about co-payments for federal assistance, making the final bill depend on location, care setting and household eligibility.
Child Care Aware of America’s figures show costs vary by a child’s age and care setting. In 2025, infant care averaged $15,636 at a center and $11,673 in a family child care home. Care for a 4-year-old averaged $12,555 at a center and $10,572 in a family home. These are national averages; a family’s quote may differ by location, schedule and provider.
Care.com’s 2026 report found surveyed parents said child care took an average of 20% of household income, and 78% said they spent at least 10%. Those are self-reported survey results, not a government estimate. Care.com’s 2025 posted-rate figures put a nanny at $870 a week for one infant and daycare at $332; the nanny figure describes a 40-hour week, so the rates are not necessarily a like-for-like comparison.
One federal employer benefit changed for 2026: the dependent care assistance limit rose to $7,500, or $3,750 for married employees filing separately, from $5,000 and $2,500, respectively. Contributions generally come from pay before income tax. The source report says the tax benefit and the federal Child and Dependent Care Tax Credit cannot be applied to the same care expenses, so families should check current IRS guidance or consult a tax professional before deciding how to allocate costs.
How Care Costs Shape Work Decisions
For many households, the bill arrives while a parent’s earnings or work schedule are already changing. A decision to leave a job can have effects beyond the months when care costs are highest, including lost earnings and a harder return to work. The source report cites a 2021 study in which, among adults with children who reported employment effects from disrupted child care, 26.9% reduced work hours and 15.9% left a job. That study concerned pandemic disruptions, not price-driven departures, so it does not establish how many parents quit because of costs.
The cost difference between settings can be substantial, but a lower weekly rate is not automatically the best fit. Hours, commute, availability, licensing and the child’s changing needs all affect the real household cost. Comparing the full schedule and asking when rates change can help families avoid paying for care they do not use or making a longer-term work decision based only on the peak-cost years.
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Price Benchmarks and Policy Changes
Child Care Aware of America reported a 23% increase in child care prices from 2021 to 2025, compared with a 24% rise in overall prices during that period. Its national average increased from $13,128 in 2024 to $13,184 in 2025. These figures describe national price trends, not what every provider charged or what an individual family paid.
The report also describes a change to the federal affordability benchmark. The Department of Health and Human Services introduced the 7% figure in 2016 as an optional benchmark for state co-payments under the Child Care and Development Fund. A March 2024 rule made a 7% cap mandatory for families receiving assistance. A May 2026 final rule removed that mandate and returned co-payment decisions to states, according to the source report. The benchmark was not a cap on private-market child care prices.
Costs are often highest when children are infants and may fall as they grow or enter public pre-K or kindergarten. The report frames this expensive period as a roughly three-year bridge, but the timing and savings vary by family and local school access. Public programs also have their own eligibility rules, funding limits and application timelines.
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What Families Still Need to Verify
National averages cannot predict an individual family’s bill. The source material does not provide state-by-state rates, local availability, or a calculation of savings after taxes for different income levels. Provider fees can also change with schedules, age groups and contract terms.
It is not yet clear how states will set co-payments following the May 2026 rule, or whether particular families will pay more or less as state policies change. The source material also does not provide full eligibility details for assistance programs or the tax-credit calculation for individual households. Families should confirm current rules with their state agency, employer benefits administrator and tax adviser.
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Compare Options Before Enrolling
Families weighing care options can request written quotes for the exact days and hours they need, then compare centers, licensed family child care homes and other arrangements available locally. Ask about part-week and sibling rates, operating hours, deposits, late fees and the rate when a child moves into the next age group. State child care licensing or referral agencies can help identify licensed providers and public assistance contacts.
Employees can ask their benefits administrator whether a dependent care assistance plan is offered and how the 2026 limit applies to their situation. Because tax benefits cannot necessarily be claimed twice on the same expenses, check IRS instructions before choosing between a workplace account and a credit. For families seeking subsidies, the next practical step is to contact the state program directly; timelines and co-payment policies depend on the state.
dependent care assistance benefits
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Key Questions
What did child care cost on average in the United States in 2025?
Child Care Aware of America reported an average of $13,184 per child in 2025. It reported center-based infant care averaging $15,636 a year. Local prices vary, so these numbers are benchmarks rather than individual quotes.
Is a family child care home less expensive than a center?
In Child Care Aware of America’s 2025 national figures, infant care averaged $11,673 in a family child care home and $15,636 at a center. A family should compare local prices, hours, licensing and the care arrangement before deciding.
What changed for employer dependent-care benefits in 2026?
The source report says the federal dependent care assistance limit rose to $7,500 in 2026, or $3,750 for married employees filing separately. Ask an employer benefits administrator how the plan works and confirm the rules for your tax situation.
Does the 7% affordability benchmark limit private child care prices?
No. The source report describes the 7% figure as a benchmark for co-payments in the federal assistance program, not a cap on private provider prices. A May 2026 rule returned decisions about those co-payments to states.
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