How much to charge for in-home daycare in 2026

Last updated 2026-07-09

What do home daycares charge on average?

The national average for full-time family child care (the formal name for home-based daycare) runs about $221 per week per child as of the most recent Child Care Aware of America data, but that average hides enormous variation ^[1]. A licensed family child care home in rural Mississippi might charge $90 to $130 per week. The same license in suburban Boston or Seattle can command $350 to $450.

Child Care Aware of America's 2023 report put the average annual cost of center-based infant care at $15,600 nationally, while family child care homes averaged closer to $10,400 per year for infants, which works out to roughly $200 per week ^[1]. Those are averages across all states. Toddler and preschool rates run 10 to 20 percent lower than infant rates in most markets.

Here's the short version. Check what licensed providers in your specific county charge right now. National averages are a starting point, never a price tag.

How much should I charge for my in-home daycare?

Work through three things in order: your costs, your local market, and your value. Skip any one and you'll either lose money or sit empty.

Step 1: Calculate your break-even cost per child.

Add up your monthly fixed costs: mortgage/rent allocation for your care space (typically 20 to 30 percent of housing costs if you use dedicated rooms), utilities, food, supplies, insurance, licensing fees, and your own labor. Then divide by the number of children you're licensed to care for. That number is your floor. Charge below it and you are paying to run a daycare.

A realistic cost breakdown for a provider caring for 6 children in a mid-cost state might look like this:

Cost Category	Monthly Estimate
Food (6 children, CACFP reimbursed partially)	$150, $300
Liability & property insurance	$75, $150
Supplies, curriculum, toys	$50, $100
Licensing fees (annualized)	$15, $40
Your labor (40 hrs/wk at $20/hr)	$3,460
Utilities allocation	$80, $150
Total monthly	~$3,830, $4,200

Divide $4,000 by 6 children and you get roughly $667 per child per month, or about $167 per week. That is your absolute floor before profit. Most providers need to charge 20 to 40 percent above break-even to cover vacations, sick days when enrollment drops, and real business risk.

Step 2: Research your local market.

Call three to five licensed home daycares in your zip code and ask their rates. Check Care.com and Winnie.com listings (filter by family child care homes). Contact your local Child Care Resource and Referral agency (CCR&R); most will give you a free market rate survey for your county ^[2]. Your state licensing agency often publishes market rate surveys too, since they use them to set subsidy reimbursement rates under CCDF ^[3].

Step 3: Decide where you want to sit in that market.

Brand-new license, a plain basement space, no references? Pricing at the 50th percentile makes sense. CPR certification, a dedicated play yard, hot meals, and years of experience? Pricing at the 75th percentile is reasonable. Pricing at the bottom to fill slots fast is a trap. Low rates pull in families who will leave for the next cheapest option, and raising rates later is brutal.

For a deeper look at how your rates compare to other childcare models, see our daycare cost guide.

How much do in-home daycares charge by state?

Geography moves your rate more than almost any other factor. Child Care Aware of America breaks out annual costs by state every year, and the spread is wide ^[1].

State	Avg. Annual FCC Home Cost (Infant)	Weekly Equivalent
Massachusetts	~$18,900	~$364
California	~$15,600	~$300
New York	~$15,000	~$288
Texas	~$9,200	~$177
Mississippi	~$5,500	~$106
National Average	~$10,400	~$200

These are averages across urban and rural areas within each state. A provider in San Francisco will charge more than one in Fresno. Weight the county-level market rate survey over the state average every time.

State licensing rules also shape your capacity, which shapes your economics. A state that lets you care for 6 children solo gives you more revenue potential than one that caps you at 4. Check your state's family child care licensing page for current capacity rules, since they set the ceiling on how much you can earn per hour of labor.

What rates should I charge for infants vs. toddlers vs. preschoolers?

Infant care (under 18 months) costs more to provide, so it should cost more to buy. Infants need more one-on-one time, lower ratios in most states (typically 1:3 or 1:4 for licensed home providers vs. 1:6 for preschoolers), more diapering, and specialized equipment. Most providers charge 15 to 30 percent more for infants than for preschool-age children ^[1].

A workable tiered structure for a mid-market provider might be:

Age Group	Suggested Weekly Rate (Mid-Market)
Infant (0 to 17 months)	$280, $360
Young toddler (18 to 24 months)	$250, $320
Toddler (2 to 3 years)	$230, $290
Preschool (3 to 5 years)	$200, $260
School-age (before/after school)	$100, $180

Those ranges assume a mid-cost metro. Adjust up or down based on your local market survey. If your state's subsidy system (CCDF) sets reimbursement rates by age tier, look at those too. They're public, and they give you another market data point ^[3].

Should I charge weekly, monthly, or daily rates?

Weekly rates are the industry standard for full-time home daycare. Most licensed providers in the U.S. charge a flat weekly fee that covers Monday through Friday, whether or not the child attends every day. This protects your cash flow and holds the slot.

Monthly billing works well once you have stable, long-term families. Bill on the 1st, collect by the 5th. Some providers add a $25 to $35 late fee after the grace period, and that fee needs to be spelled out in your contract.

Daily or drop-in rates should be 20 to 40 percent higher per day than your weekly rate divided by five. If your full-time weekly rate is $250, a daily drop-in rate of $65 to $75 is reasonable. You're holding a spot that could go to a full-time child, and the unpredictability costs you something.

Part-time daycare pricing is its own calculation. A true part-time slot (3 days per week) typically prices at 70 to 80 percent of the full-time weekly rate, not 60 percent, because the fixed costs of holding that slot are nearly identical.

One more thing. Charge for holidays. Build a paid-holiday list into your contract from day one. Losing a week of income every time there's a federal holiday will eat your margins fast.

How do registration fees, supply fees, and deposits work?

Most experienced home daycare providers charge a non-refundable registration fee of $50 to $150 to hold a spot. This filters out families who aren't serious and covers your time doing intake paperwork and orientation.

A security deposit equal to one or two weeks of care is also standard. It protects you when a family leaves without notice. In most states, deposits are not regulated the way residential security deposits are, so specify in your contract whether it's refundable and under what conditions.

Supply or activity fees ($20 to $50 per month) are increasingly common for things like art supplies, field trip costs, or curriculum materials. Some providers bundle these into the weekly rate; others itemize them. Itemizing makes your base rate look lower in listings, which can help with marketing.

Get your fee schedule into your contract and signed before the child's first day. Verbal agreements fall apart the moment a family disputes a charge.

How does CACFP affect my pricing?

The Child and Adult Care Food Program (CACFP) is a federal program that reimburses licensed home daycare providers for meals and snacks served to enrolled children. In 2024, reimbursement rates for family child care homes were roughly $1.39 per breakfast, $2.61 per lunch, and $0.77 per snack for Tier I providers (those in low-income areas or with low household income themselves) ^[4].

That adds up. A Tier I provider feeding 6 children breakfast and lunch every day earns approximately $17 to $20 per child per week in CACFP reimbursements, or roughly $1,000 to $1,200 per month across a full group. That money directly reduces your food costs and lets you either price more competitively or keep more margin.

Participating in CACFP requires you to be licensed, keep meal records, and work through a sponsoring organization in most states. Contact your state's CACFP office or your local CCR&R to find a sponsor. The USDA Food and Nutrition Service maintains the program rules and current reimbursement rates ^[4].

If you're licensed and not on CACFP, sign up. It's one of the best free revenue sources a home daycare provider has.

What about subsidies and CCDF vouchers?

Families using Child Care and Development Fund (CCDF) vouchers, often called subsidy or certificate programs, pay you a government-set rate rather than your private market rate. Each state sets its own CCDF reimbursement rates, and in many states those rates sit below what private-pay families pay, sometimes by a lot ^[3].

The Consolidated Appropriations Act of 2021 required states to set CCDF reimbursement rates at or above the 75th percentile of current market rates, but compliance and data timelines vary by state ^[3]. In practice, some states are still catching up. Before you decide to accept subsidy families, look up your state's current CCDF reimbursement rates and compare them to your private rate.

Accepting subsidies opens your program to more families, reduces vacancy risk, and in some states includes quality bonus payments on top of base rates. The tradeoff is more paperwork and slower payment cycles (typically 2 to 4 weeks after submission rather than weekly from families) ^[8].

If you're tracking compliance across your program, tools like the ChildCareComp licensing toolkit can help you stay current on your state's subsidy requirements and documentation rules.

Can I legally run a daycare in my home?

Yes, in every U.S. state, but the rules vary a lot. Every state licenses family child care homes separately from child care centers. Licensing thresholds also vary: most states require a license once you care for more than a set number of unrelated children, typically 3 to 6 ^[5].

Below that threshold, some states have an 'exempt' or 'registered' tier. Exempt providers can legally operate but usually can't accept CCDF subsidies and can't participate in CACFP. If you want to charge market rates, accept subsidy families, and join food programs, a full license is almost always worth pursuing.

Check your local zoning laws too. Some residential zones prohibit or limit home-based businesses, including child care. Contact your city or county planning office before you open enrollment. Some municipalities require a separate home occupation permit on top of your state childcare license.

If you have a mortgage or rent, read your agreement. HOA covenants sometimes restrict commercial activity, though many states have laws that limit HOA power to prohibit licensed family child care. California, for example, explicitly protects licensed home providers under Health and Safety Code Section 1597.40 ^[6].

Check your homeowner's or renter's insurance last, and don't skip it. Standard policies typically exclude business activity. You need a rider or a standalone home daycare insurance policy that covers liability and property damage from your operation. Costs run roughly $500 to $1,500 per year depending on coverage and state. Going without is one of the fastest ways to lose your home.

How do I raise my rates without losing families?

Give at least 30 days written notice, more if your contract requires it. Most provider contracts specify a 30 to 60 day notice period for rate changes. Honor that.

Frame the increase around specific changes: 'food costs are up 12 percent this year,' or 'I've completed X hours of training and am moving to a higher quality tier.' Vague increases feel arbitrary. Concrete ones feel fair.

Annual increases of 3 to 6 percent tied to cost-of-living changes are much easier for families to absorb than large jumps every few years. Hold rates flat for 3 years, then spring a 20 percent increase to survive, and you'll have a hard conversation. Small annual increases avoid that.

Send the notice in writing, get a signed acknowledgment, and document it. If a family leaves over a reasonable increase, they were probably always on the edge of leaving. A provider who's afraid to raise rates is a provider who burns out and closes.

What are the tax and cost implications of running an in-home daycare?

Home daycare income is taxable self-employment income. You'll owe federal income tax plus self-employment tax (15.3 percent on net earnings up to the Social Security wage base) ^[7]. Most providers should make quarterly estimated tax payments to avoid a large April bill.

The deductions are real, and they're generous. The IRS lets home daycare providers deduct the business-use portion of their home using the Time-Space percentage method, which is specific to child care providers and often more favorable than the standard home office deduction ^[7]. If your home is used 40 percent of the day for daycare and 30 percent of the home's space is dedicated to care, your Time-Space percentage is 12 percent, and you can deduct 12 percent of mortgage interest, utilities, repairs, and depreciation.

Food, supplies, toys, training, and your liability insurance are all deductible business expenses. Keep receipts. A good spreadsheet or basic accounting software (QuickBooks Self-Employed runs about $15 per month) pays for itself many times over at tax time.

Tom Copeland's tax guidance has been the standard reference for home daycare providers for decades. His book 'Family Child Care Tax Workbook and Organizer' (updated annually) is the single most useful tax resource for home providers.

Factor in cleaning costs. A tight sanitation program matters for licensing compliance and family retention, and those supplies are deductible. See our daycare cleaning guide for what regulators actually look for.

For liability protection beyond insurance, think about your business structure. An LLC won't erase personal liability in child care (courts often pierce the corporate veil in care settings), but it adds a layer and signals professionalism. A local business attorney can advise you for a flat-fee consultation, typically $150 to $300.

How should I handle late pickups, sick-child policies, and other fees?

Late pickup fees aren't optional padding. They're a boundary that protects your family time and your sanity. A standard structure is $1 to $2 per minute after your closing time, starting at minute one or after a 5-minute grace period. Put it in writing. Enforce it from day one. Providers who waive it the first three times teach families it isn't real.

Sick-child policies hit your income harder than most new providers expect. If you close for illness, do families still pay? The industry standard is yes: families pay for the reserved slot regardless of whether the child attends. Your mortgage doesn't pause because a child has a cold. Write this into your contract clearly.

Some providers offer a limited number of 'family vacation days' per year (typically 5 to 10 days) where the family doesn't pay. That's reasonable and keeps goodwill. Open-ended 'you don't pay if your child doesn't come' policies drain your revenue with no warning.

Make sure you have daycare liability insurance that covers these situations clearly. Review what incidents are covered and what documentation you'd need if a family ever disputed a charge or filed a complaint with your licensing agency.

Frequently asked questions

How much do home daycares charge per week on average?

National averages from Child Care Aware of America put family child care homes at roughly $200 per week per child for infants, and somewhat less for toddlers and preschoolers. State and local variation is massive: rural Mississippi averages under $110 per week, while suburban Boston or Seattle can run $350 to $450. Always check your county's market rate survey for an accurate local number.

How much should I charge for in-home daycare if I'm just starting out?

Start by calculating your break-even cost per child, then research local rates through your CCR&R agency or by calling licensed providers in your area. New providers without references often price at the 40th to 50th percentile of local rates. Don't underprice to fill spots fast; it's very hard to raise rates significantly once families are enrolled and expecting a certain number.

What do home daycares typically charge for infants?

Infant care (under 18 months) is the most expensive age group. Home daycares nationally charge roughly $200 to $350 per week for infants, with high-cost states like Massachusetts and California exceeding $350. The premium over preschool rates is typically 15 to 30 percent, reflecting lower ratios, more hands-on care, and specialized equipment like cribs and high chairs.

Can I run a daycare in my home legally?

Yes. Every U.S. state allows family child care homes. Most states require a license once you care for more than 3 to 6 unrelated children. Below that threshold you may operate in an exempt tier, but you can't access CCDF subsidies or CACFP food reimbursements without a license. Check local zoning rules and your HOA covenants, and make sure your homeowner's insurance covers business activity.

Should I charge weekly or monthly for home daycare?

Weekly is the industry standard for full-time care because it protects your cash flow and is easy for families to budget. Monthly billing works once you have stable long-term families, but weekly payments mean you catch problems (bounced checks, late payment) before they become a month of lost income. Whatever cycle you choose, put it in a signed contract with a specific due date and late fee.

How much should I charge for part-time home daycare?

Part-time rates (2 to 3 days per week) typically run 70 to 80 percent of the full-time weekly rate, not the pro-rated daily equivalent. The reason: your fixed costs are nearly the same whether a child attends 3 or 5 days, and that slot is unavailable to a full-time family. If your full-time weekly rate is $240, a 3-day part-time rate of $170 to $195 is defensible.

How do I price drop-in daycare rates?

Drop-in or occasional care should be priced 20 to 40 percent above the daily equivalent of your weekly rate. If your full-time weekly rate is $250 ($50/day equivalent), charge $65 to $70 for a drop-in day. You're holding a spot with no guarantee of future use, and ad hoc scheduling costs you time and flexibility. Always require advance notice (24 to 48 hours) and confirm space availability first.

What is the CCDF subsidy and how does it affect what I charge?

CCDF (Child Care and Development Fund) vouchers allow low-income families to pay for care using government funds. The state pays you a set reimbursement rate, which may be lower than your private rate. A 2021 federal rule requires states to reimburse at or above the 75th percentile of market rates, but implementation varies. Check your state's current rates before deciding whether to accept subsidy families.

How does CACFP reduce my costs and affect my rates?

CACFP reimburses licensed home daycare providers for meals and snacks. Tier I providers earned roughly $1.39 per breakfast and $2.61 per lunch in 2024. For a provider with 6 children eating two meals daily, that's $1,000 or more per month in food reimbursement. Participating in CACFP lowers your effective cost per child, which gives you room to price competitively or improve your margin.

How much should I charge for before and after school care?

Before and after school care at a home daycare typically runs $100 to $200 per week depending on your market, hours covered, and whether you provide transportation from the school bus stop or school itself. Split-shift care (mornings only or afternoons only) runs $60 to $120 per week. Price this higher per hour than full-day care because you're managing drop-off/pickup logistics and keeping ratios for partial days.

Do I need a license to charge for daycare in my home?

Most states require a license once you care for more than a threshold number of unrelated children, typically 3 to 6. Below that number, you may be in a legally exempt tier and can charge for care without a license. However, unlicensed providers can't accept CCDF subsidies, can't participate in CACFP food programs, and carry higher liability exposure. Licensing also signals quality to families and typically lets you charge more.

How much can I realistically earn running an in-home daycare?

A licensed family child care home caring for 6 children at $250 per week grosses $1,500 per week or about $72,000 per year before expenses. After food, supplies, insurance, and the time-space deduction offset, net income for a solo provider typically falls between $25,000 and $45,000 annually in a mid-cost market. Higher-rate markets and providers who fill capacity can earn more, but this is not a path to fast wealth.

Can I raise my rates mid-contract?

Usually not without proper notice. Most family child care contracts include a clause specifying how much advance notice you must give before a rate increase, typically 30 to 60 days. Honor that notice period and give it in writing. Raising rates mid-contract without the agreed notice period can damage trust and in some states may put you in breach. Build annual rate adjustment language into new contracts from the start.

What fees are normal to charge beyond the weekly rate?

Standard add-on fees include a one-time registration fee ($50 to $150), a security deposit (one to two weeks of care), late pickup fees ($1 to $2 per minute after closing), and a supply or activity fee ($20 to $50 per month). Some providers charge extra for transportation, cloth diapering, or extended hours. Every fee must be in the signed contract before the child's first day.

Sources

1. Child Care Aware of America, 'Demanding Change: Repairing Our Child Care System' (2023 annual report): National average annual cost of family child care homes for infants is approximately $10,400; center-based infant care averages $15,600 nationally
2. Child Care Aware of America, Child Care Resource and Referral Agency locator: CCR&R agencies provide free local market rate surveys to providers and families
3. U.S. Department of Health and Human Services, Office of Child Care, CCDF Program: CCDF reimbursement rates and the 2021 federal requirement that states set rates at or above the 75th percentile of current market rates
4. USDA Food and Nutrition Service, Child and Adult Care Food Program (CACFP): 2024 CACFP reimbursement rates for family child care homes: approximately $1.39 per breakfast and $2.61 per lunch for Tier I providers
5. National Association for Regulatory Administration (NARA), child care licensing regulations: State-by-state licensing thresholds for family child care homes, typically 3 to 6 unrelated children before licensing is required
6. California Health and Safety Code Section 1597.40 (California Legislative Information): California law limits HOA power to prohibit licensed family child care homes in residential settings
7. IRS Publication 587, Business Use of Your Home (including use by daycare providers): IRS allows home daycare providers to use the Time-Space percentage method to calculate the business-use portion of home expenses; self-employment tax rate is 15.3 percent on net earnings
8. U.S. Department of Health and Human Services, Office of Child Care: CCDF state plans govern subsidy payment cycles and provider eligibility requirements