Most Expensive & Cheapest States for Daycare in 2025: Full Rankings

American families pay wildly different amounts for the exact same childcare depending on where they live. A parent in Massachusetts might pay $24,000 per year for infant daycare while a parent in Mississippi pays $5,400—a difference of nearly $19,000 annually.

Understanding these differences can help you budget realistically, negotiate better, or even factor childcare costs into relocation decisions.

Here's the complete breakdown of daycare costs in all 50 states, plus what drives these dramatic differences.

The Most Expensive States for Daycare (2025)

These ten states have the highest average infant daycare costs in the nation:

| Rank | State | Infant Annual Cost | Infant Monthly Cost | % Above National Average | |------|-------|-------------------|---------------------|-------------------------| | 1 | Washington D.C.* | $24,700 | $2,058 | +115% | | 2 | Massachusetts | $22,100 | $1,842 | +92% | | 3 | California | $19,500 | $1,625 | +70% | | 4 | New York | $20,800 | $1,733 | +81% | | 5 | Colorado | $18,200 | $1,517 | +58% | | 6 | Washington | $17,400 | $1,450 | +51% | | 7 | Minnesota | $17,700 | $1,475 | +54% | | 8 | New Jersey | $16,800 | $1,400 | +46% | | 9 | Connecticut | $16,500 | $1,375 | +43% | | 10 | Maryland | $15,900 | $1,325 | +38% |

*D.C. is technically a district, not a state, but often included in these comparisons.

Why These States Are So Expensive

1. High Cost of Living Every state in the top 10 has major metropolitan areas with extremely high housing costs. Childcare centers pay rent and need staff who can afford to live nearby—both drive up costs.

2. Stricter Regulations States like Massachusetts and Washington have lower staff-to-child ratios (requiring more teachers per child) and higher staff education requirements. Better quality = higher costs.

3. Higher Minimum Wages Many expensive states have minimum wages of $15-17/hour. Since childcare is labor-intensive, higher wages directly increase costs.

4. Strong Economies These states generally have higher median incomes, so the market can bear higher prices.

The Cheapest States for Daycare (2025)

These ten states have the lowest average infant daycare costs:

| Rank | State | Infant Annual Cost | Infant Monthly Cost | % Below National Average | |------|-------|-------------------|---------------------|-------------------------| | 50 | Mississippi | $5,400 | $450 | -53% | | 49 | Kentucky | $7,600 | $633 | -34% | | 48 | Arkansas | $7,200 | $600 | -37% | | 47 | South Carolina | $7,900 | $658 | -31% | | 46 | Louisiana | $7,500 | $625 | -35% | | 45 | Alabama | $7,800 | $650 | -32% | | 44 | Tennessee | $8,400 | $700 | -27% | | 43 | Missouri | $8,600 | $717 | -25% | | 42 | Oklahoma | $8,200 | $683 | -29% | | 41 | West Virginia | $8,800 | $733 | -23% |

Why These States Are More Affordable

1. Lower Cost of Living Housing, food, and general expenses are much lower in these states. That translates to lower facility costs and lower wage requirements for staff.

2. Less Restrictive Ratios Some states allow more children per caregiver. Mississippi allows 1:5 for infants vs. 1:3 in Massachusetts. Fewer staff = lower costs.

3. Lower Wage Floors Federal minimum wage ($7.25) applies in several of these states, keeping labor costs down.

4. Rural Character Many of these states have more rural populations where childcare demand and costs are lower.

Complete State-by-State Daycare Cost Rankings

Here's where every state falls for infant daycare costs:

| Rank | State | Infant Annual Cost | Monthly Cost | |------|-------|-------------------|--------------| | 1 | Washington D.C. | $24,700 | $2,058 | | 2 | Massachusetts | $22,100 | $1,842 | | 3 | New York | $20,800 | $1,733 | | 4 | California | $19,500 | $1,625 | | 5 | Colorado | $18,200 | $1,517 | | 6 | Minnesota | $17,700 | $1,475 | | 7 | Washington | $17,400 | $1,450 | | 8 | New Jersey | $16,800 | $1,400 | | 9 | Connecticut | $16,500 | $1,375 | | 10 | Maryland | $15,900 | $1,325 | | 11 | Oregon | $15,200 | $1,267 | | 12 | Illinois | $15,600 | $1,300 | | 13 | Vermont | $14,900 | $1,242 | | 14 | Rhode Island | $14,500 | $1,208 | | 15 | Virginia | $14,300 | $1,192 | | 16 | Pennsylvania | $13,800 | $1,150 | | 17 | New Hampshire | $14,100 | $1,175 | | 18 | Wisconsin | $13,500 | $1,125 | | 19 | Nevada | $13,200 | $1,100 | | 20 | Hawaii | $14,800 | $1,233 | | 21 | Alaska | $12,900 | $1,075 | | 22 | Maine | $12,400 | $1,033 | | 23 | Arizona | $12,200 | $1,017 | | 24 | Ohio | $12,100 | $1,008 | | 25 | Georgia | $11,800 | $983 | | 26 | Texas | $13,200 | $1,100 | | 27 | Michigan | $11,900 | $992 | | 28 | North Carolina | $11,500 | $958 | | 29 | Utah | $11,400 | $950 | | 30 | Delaware | $11,200 | $933 | | 31 | Indiana | $10,800 | $900 | | 32 | Florida | $12,600 | $1,050 | | 33 | Kansas | $10,500 | $875 | | 34 | Iowa | $10,700 | $892 | | 35 | Nebraska | $10,200 | $850 | | 36 | Montana | $10,100 | $842 | | 37 | Idaho | $9,800 | $817 | | 38 | Wyoming | $9,600 | $800 | | 39 | New Mexico | $9,400 | $783 | | 40 | North Dakota | $9,200 | $767 | | 41 | West Virginia | $8,800 | $733 | | 42 | Oklahoma | $8,200 | $683 | | 43 | Missouri | $8,600 | $717 | | 44 | Tennessee | $8,400 | $700 | | 45 | Alabama | $7,800 | $650 | | 46 | Louisiana | $7,500 | $625 | | 47 | South Carolina | $7,900 | $658 | | 48 | Arkansas | $7,200 | $600 | | 49 | Kentucky | $7,600 | $633 | | 50 | Mississippi | $5,400 | $450 |

National Average: $11,500/year ($958/month)

What Drives Daycare Costs? The Key Factors

1. Staff-to-Child Ratios

This is the biggest cost driver. States requiring more caregivers per child have higher costs.

| Ratio Standard | Example States | Impact | |---------------|----------------|--------| | 1:3 infants | Massachusetts, Maryland | Highest costs | | 1:4 infants | California, New York, Texas | High costs | | 1:5 infants | Florida, Georgia | Moderate costs | | 1:6+ infants | Mississippi, Louisiana | Lowest costs |

Every additional child a caregiver can supervise reduces costs by approximately 10-15%.

2. Staff Education Requirements

| Requirement | Example States | Impact | |------------|----------------|--------| | CDA or degree required | Massachusetts, D.C. | +15-25% costs | | High school + training | Most states | Baseline costs | | Minimal requirements | Mississippi, Idaho | Lower costs |

Better-trained staff command higher wages, increasing costs.

3. Real Estate Costs

A daycare center in Manhattan pays $50-100 per square foot in rent. The same space in rural Mississippi might cost $8-12 per square foot. These costs pass through to parents.

4. Local Wage Levels

Childcare is labor-intensive—staff wages are typically 60-70% of a center's expenses. In high-wage states, this drives costs dramatically higher.

| State Minimum Wage | Examples | Daycare Impact | |-------------------|----------|----------------| | $15-17/hour | California, Washington, Massachusetts | Highest costs | | $10-14/hour | Florida, Arizona, Ohio | Moderate costs | | $7.25/hour (federal) | Mississippi, Louisiana, Alabama | Lowest costs |

Daycare Costs as a Percentage of Income

Raw dollar amounts don't tell the whole story. Here's how daycare affordability compares when factoring in local incomes:

| State | Infant Cost | Median HH Income | % of Income | |-------|-------------|------------------|-------------| | Mississippi | $5,400 | $48,716 | 11.1% | | Massachusetts | $22,100 | $89,645 | 24.6% | | California | $19,500 | $84,097 | 23.2% | | New York | $20,800 | $74,314 | 28.0% | | Texas | $13,200 | $67,321 | 19.6% | | Florida | $12,600 | $63,062 | 20.0% | | National Average | $11,500 | $70,784 | 16.2% |

The U.S. Department of Health and Human Services considers childcare "affordable" at 7% of household income. Every single state exceeds this threshold for infant care.

Even in Mississippi with the lowest costs, daycare consumes 11% of median household income—57% above the affordability standard.

How to Afford Daycare in Any State

Regardless of where you live, these strategies can help reduce childcare costs:

1. Apply for Childcare Subsidies

Every state has a childcare assistance program funded through the federal Child Care Development Fund (CCDF). Income limits vary but often reach 200-250% of the federal poverty level.

Find your state's subsidy program

2. Use Your FSA

Dependent Care FSAs let you save $5,000 pre-tax for childcare. In high-tax states like California or New York, this saves $2,000+ per year.

Calculate your tax savings

3. Explore Family Childcare

Licensed home-based providers typically charge 15-30% less than centers with similar quality. They're especially cost-effective for infants.

4. Check for Universal Pre-K

More states now offer free or subsidized pre-K for 4-year-olds (and sometimes 3-year-olds):

| State/City | Program | Ages | Savings | |-----------|---------|------|---------| | New York City | 3-K and Pre-K for All | 3-4 | $20,000+/year | | Florida | VPK | 4 | $6,000/year | | California | Transitional Kindergarten | 4 | $15,000/year | | Georgia | Pre-K | 4 | $9,000/year | | Oklahoma | Pre-K | 4 | $8,000/year |

5. Negotiate Multi-Child Discounts

If you have multiple children, most daycares offer 10-20% sibling discounts. Always ask—and negotiate.

6. Consider Timing

Infant care costs 20-40% more than preschool. If you have flexibility in when to return to work, even a few months can affect costs significantly.

Should You Relocate for Cheaper Childcare?

Some families consider moving to lower-cost areas specifically for childcare savings. Here's a realistic look:

Potential Savings: Moving from Massachusetts to Tennessee could save $14,000/year in infant care alone. Over 5 years, that's $70,000.

But Consider:

• Your income will likely be lower in lower-cost states
• Career opportunities may be more limited
• You'll leave your support network (grandparents, friends)
• The difference narrows as children get older

When It Makes Sense:

• You work remotely with location flexibility
• You have family in a lower-cost area
• You're already considering a move for other reasons
• You have multiple children (multiplies savings)

When It Doesn't:

• You'd take a significant pay cut
• You have strong local support (free grandparent care beats any move)
• You're only considering it for 1-2 years of childcare

The Future of Childcare Costs

Several trends are shaping childcare costs:

Increasing State Investment

More states are expanding Pre-K programs and childcare subsidies. California, New York, and Colorado have all increased funding recently.

Federal Proposals

Various federal proposals would cap childcare costs at 7% of income for families. None have passed yet, but this remains an active policy area.

Workforce Shortages

Post-pandemic childcare worker shortages are pushing wages up, which increases costs. This trend may continue as the field struggles to attract workers.

Quality Improvements

As states raise standards for licensing and quality ratings, costs tend to increase. Better care generally costs more.

Calculate Your Actual Costs

State averages are helpful for planning, but your actual costs depend on:

• Your specific city/neighborhood
• Your child's age
• Full-time vs. part-time care
• Center vs. home-based care
• Any special programs you qualify for

Use our Daycare Cost Calculator to get a personalized estimate based on your situation.

Frequently Asked Questions

Why is infant care so much more expensive than preschool?

Infant care requires more staff per child (lower ratios), more space per child (cribs, changing areas), and specialized training. A teacher who can care for 10 preschoolers can only care for 3-4 infants. This tripling of labor costs directly increases prices by 20-40%.

Do higher-cost states have better quality daycare?

Not necessarily. Higher costs often reflect higher wages and living expenses rather than quality differences. A well-run center in Mississippi may provide excellent care despite lower prices. Look at licensing compliance, accreditation, staff turnover, and your own observations rather than price as a quality indicator.

Can I use out-of-state daycare if I live near a border?

Yes, but consider logistics carefully. If you live in a high-cost state near a lower-cost state's border, crossing for daycare might save money. However, factor in commute time, emergency pickup challenges, and whether your home state's subsidies apply to out-of-state providers (usually not).

Why don't more people move to lower-cost states for childcare?

Childcare is one expense among many. Lower-cost states often have lower wages, so savings may be offset by reduced income. Career opportunities, family proximity, quality of life preferences, and the temporary nature of childcare costs (5-6 years) also factor in. Most families find it's easier to optimize within their current location.

How accurate are these state averages?

State averages mask significant within-state variation. Urban areas always cost more than rural areas. Premium centers cost more than basic ones. Your actual costs depend on your specific city, neighborhood, and provider choice. Use these numbers for general planning, then research your local market for accurate budgeting.

Will daycare costs ever come down?

Systemic change is possible but uncertain. Universal Pre-K is expanding (reducing costs for 4-year-olds). Some states are increasing subsidies. Federal proposals to cap childcare costs periodically surface. However, labor shortages and rising wages may keep pushing prices up. Plan for current costs and consider any reductions a bonus.

How do I find the actual average in my city?

Contact 5-10 providers in your area and average their infant rates. This gives a more accurate local picture than state averages. Our daycare cost calculator can also help estimate costs based on your specific location.

Is it cheaper to move within my state to a lower-cost area?

Often yes, but again consider the full picture. Suburban and rural areas within expensive states typically cost 20-40% less than urban cores. If you're already considering a move, childcare costs are worth factoring in—but they shouldn't be the sole driver.

Why do some families pay less than these averages?

Some families qualify for subsidies, reducing out-of-pocket costs dramatically. Others use family daycare (typically 15-30% less), receive employer assistance, use informal care arrangements, or qualify for free Pre-K programs. The averages represent full-price, center-based care.

How often do daycare prices increase?

Plan for 5-8% annual increases on average. Some years are lower; some are higher. The post-2020 period saw larger increases due to staffing challenges. Build rate increases into your long-term budget—the rate you pay at enrollment will rise each year.

Bottom Line

Daycare costs vary enormously across the United States—from $450/month in Mississippi to $2,000+/month in D.C. and Massachusetts. The differences are driven by regulations, cost of living, wage levels, and market dynamics.

Regardless of where you live:

• Apply for subsidies even if you think you earn too much
• Use your Dependent Care FSA to save on taxes
• Explore family daycare as a lower-cost option
• Plan for universal Pre-K when your child turns 4

The most important thing is finding quality care you can afford. Expensive doesn't always mean better, and many families find excellent care in the middle of the cost spectrum.

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Related Resources:

• California Daycare Costs - City-by-city breakdown
• Texas Daycare Costs - City-by-city breakdown
• New York Daycare Costs - City-by-city breakdown
• Florida Daycare Costs - City-by-city breakdown
• Daycare Cost Calculator - Personalized estimates
• Affordable Childcare Options - How to save money