The US Department of Health and Human Services calls 7 percent of household income the threshold for affordable child care. Per Child Care Aware of America's 2024 Price of Child Care analysis, the typical US family pays well above that, and in many states, infant care alone consumes 15 to 25 percent of a median household's income. Here is the state-by-state picture, the methodology, and what it means for your family.
Per the HHS Child Care and Development Fund Final Rule (45 CFR Part 98), child care is considered affordable when family copayments do not exceed 7 percent of household income. HHS uses this benchmark to set state subsidy copay structures. It is the closest thing to an official US affordability standard for child care.
By that standard, the typical US family pays roughly twice the affordable rate for one child in licensed center care. For families with two or more children in care, the share can run three to four times the affordability ceiling. See our twins cost and second-child math guides for multi-child families.
Per Child Care Aware of America's 2024 report, the national average annual cost of one child in center-based infant care is roughly $13,500 to $17,200 depending on data source. Per US Census Bureau American Community Survey data, median US household income in 2023 was approximately $77,700.
That puts the national average at roughly 17 to 22 percent of median household income for one infant. For preschool-age care, the figure drops to roughly 12 to 16 percent. Both are well above the 7 percent HHS standard.
| Care type | National average annual cost | % of median household income |
|---|---|---|
| Infant (center) | $13,500 to $17,200 | 17% to 22% |
| Toddler (center) | $11,800 to $14,900 | 15% to 19% |
| Preschool (center) | $9,700 to $12,400 | 12% to 16% |
| Family child care home (avg) | $10,200 to $13,100 | 13% to 17% |
The states where licensed center infant care consumes the highest share of median household income are typically high-cost urban states. Per Child Care Aware sample data combined with Census ACS median income estimates:
Per Census ACS data, these states also have higher median incomes, which moderates the percentage somewhat. The states where infant care exceeds 25 percent of median income tend to have a combination of expensive metros and stricter staffing ratios, which raise costs. See our ratios guide for the regulatory side.
The states with the most affordable share of income for licensed center infant care tend to be lower-cost-of-living states with lighter regulatory frameworks:
Even in the lowest-burden states, infant care still consumes about twice the 7 percent HHS affordability standard. Our state comparison and regional cost guides have full breakdowns.
Two-earner families face a math problem. When daycare consumes 20 percent of a household's pre-tax income, it can consume 30 percent or more of the second earner's net pay. This is the central calculation behind our is daycare worth it financially guide. The decision is rarely binary, but the math is real.
Three structural reasons that some states are dramatically more affordable than others:
Per state licensing rules tracked by NAEYC, infant ratios range from 1:3 in Maryland to 1:6 in Louisiana and other lower-regulation states. Stricter ratios produce higher quality and higher prices. Our ratios guide compares all 50 states.
Per BLS Occupational Employment Statistics, childcare worker mean hourly wage is approximately $14 to $18 nationally but is higher in states with mandatory training, certifications, or unionization. Wages are about 60 to 70 percent of total center operating cost.
A center's rent or mortgage is a structural cost. Centers in New York or San Francisco pay 5 to 10 times the rent of equivalent centers in lower-cost metros. That cost passes directly to families.
A reasonable framework, by household type:
If daycare in your state would consume more than 20 to 25 percent of your gross income, run the alternatives seriously:
By the HHS standard, child care is affordable at 7 percent of household income. In practice, the typical US family pays 12 to 22 percent for one child and far more for two. The burden is heaviest in coastal high-cost states and lowest in the South and lower-cost Mountain West. Run your own number first; then run the levers that bring it down. For full planning, see the cost pillar and the cost calculator.
How daycare pricing works nationwide, what drives the differences, and how to plan a realistic budget.
Read the guide → Free toolPlug in your ZIP, child age, and care type. Net out-of-pocket estimate after credits and subsidies.
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