Daycare cost in Memphis, neighborhood by neighborhood.

Published ·Updated

Memphis preschool teacher reading to a small group of children

Memphis runs at the bottom of the Tennessee major-metro range on daycare prices, well below Nashville and roughly even with Knoxville and Chattanooga, with East Memphis, Germantown, Collierville, Lakeland, and parts of Cordova setting the metro top. South Memphis, Frayser, Whitehaven, and Orange Mound sit at the bottom. Tennessee does not have universal pre-K, but TN VPK reaches income-eligible four-year-olds in Memphis-Shelby County Schools and the six municipal districts that broke off from MSCS in 2014.

Sources used throughout: the U.S. Department of Labor's National Database of Childcare Prices (most recent Shelby, Fayette, Tipton, and DeSoto County data, with DeSoto cross-referenced for the Mississippi border), the Tennessee Department of Human Services Child Care Licensing division on licensing under TN Comp. R. & Regs. 1240-04-03 (centers) and 1240-04-04 (family child care homes), the Tennessee Department of Education Office of Early Learning on TN Voluntary Pre-K (TN VPK) under T.C.A. 49-6-101 et seq., the Tennessee Smart Steps Child Care Certificate program under TDHS, TN Star-Quality as the Tennessee QRIS under TDHS, the National Institute for Early Education Research (NIEER) State Preschool Yearbook for Tennessee, Signal Centers as the southeast Tennessee Child Care Resource and Referral agency and Porter-Leath as the Shelby County Head Start grantee and pre-K partner, Memphis-Shelby County Schools (MSCS) Office of Early Childhood Education, Germantown Municipal Schools, Collierville Schools, Bartlett City Schools, Arlington Community Schools, Lakeland School System, and Millington Municipal Schools early-learning offices, Naval Support Activity Mid-South Child Development Center, the U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics for Memphis-area child care workers and preschool teachers, and the U.S. Department of Health and Human Services Administration for Children and Families on Head Start and the Child Care and Development Fund for Tennessee.

The headline numbers

In 2026 dollars, full-time center-based daycare in Memphis runs roughly $900 to $1,275 per month for infants and roughly $750 to $1,000 per month for preschool-age children. Licensed family child care homes, regulated under TN Comp. R. & Regs. 1240-04-04 with caps of seven children, typically charge 25 to 35 percent less than centers in the same neighborhood. These ranges come from the National Database of Childcare Prices for the Memphis-Shelby County metro and Signal Centers / Porter-Leath market-rate work, not single-point averages.

Infant care in Memphis typically prices 25 to 35 percent above preschool-age care because of Tennessee's ratio rules. The state sets the center infant ratio at 1:4 for children under 12 months under 1240-04-03 with a group-size cap of eight infants. Memphis-area center wage floors — per BLS — sit at the bottom of the U.S. major-metro range, which is the largest single reason Memphis center rates run 25 to 35 percent below Nashville at comparable star levels.

By neighborhood

AreaInfant, centerPreschool, centerFamily child care
Germantown, Collierville, Lakeland$1,150–$1,275 / month$925–$1,000 / month$800–$875 / month
East Memphis (Poplar corridor, Chickasaw Gardens, High Point Terrace)$1,100–$1,225 / month$900–$975 / month$775–$850 / month
Cordova (north), Bartlett, Arlington$1,050–$1,175 / month$875–$950 / month$750–$825 / month
Midtown (Cooper-Young, Evergreen, Overton Square)$1,025–$1,150 / month$850–$925 / month$725–$800 / month
Downtown, Harbor Town, South Bluffs, South Main$1,000–$1,125 / month$825–$900 / month$725–$800 / month
Cordova (south), Hickory Hill$975–$1,075 / month$800–$875 / month$700–$775 / month
Raleigh, North Memphis, Berclair$950–$1,050 / month$800–$875 / month$675–$750 / month
Millington (near NSA Mid-South)$925–$1,025 / month$775–$850 / month$650–$725 / month
Whitehaven, Orange Mound, Binghampton$925–$1,000 / month$775–$825 / month$650–$725 / month
South Memphis, Frayser$900–$975 / month$750–$800 / month$625–$700 / month

These ranges represent licensed care at TN Star-Quality 2- and 3-Star centers and similarly accredited sites, not subsidized seats or unrated providers. Germantown, Collierville, Lakeland, East Memphis, and Cordova-north sit at the top of the metro range. South Memphis, Frayser, Whitehaven, and Orange Mound sit at the bottom — though still above the rural West Tennessee median.

Tennessee VPK

If your child is four during the school year and your household is at or below 185 percent of the federal poverty level, Tennessee Voluntary Pre-K (TN VPK) materially changes the math. The program, administered by the Tennessee Department of Education Office of Early Learning, pays for a free pre-K seat at a TN Star-Quality 2- or 3-Star provider — typically a Memphis-Shelby County Schools elementary classroom or a Porter-Leath community-based site. MSCS's Office of Early Childhood Education runs TN VPK classrooms across the city.

The six Shelby County municipal districts that separated from MSCS in 2014 — Germantown Municipal Schools, Collierville Schools, Bartlett City Schools, Arlington Community Schools, Lakeland School System, and Millington Municipal Schools — each operate their own TN VPK allocations within their boundaries. Federally funded Head Start operates locally through Porter-Leath, the long-standing Shelby County grantee, with full-day Early Head Start options for children under three. Porter-Leath also runs a meaningful share of Memphis's mixed-delivery pre-K under contract with MSCS.

Heads up. TN VPK is not universal. The state legislature has periodically considered expansion but has not passed a universal entitlement. If your four-year-old is outside the 185 percent of FPL eligibility band (roughly $59,500 for a family of four in 2026), the seat is private-pay or Smart Steps-subsidized. MSCS does also run a small tuition-based community pre-K program at selected sites for non-VPK-eligible families — check with the MSCS Office of Early Childhood Education before relying on it.

Smart Steps and TN Star-Quality

For infants, toddlers, and four-year-olds over the TN VPK ceiling, Tennessee's Smart Steps Child Care Certificate is the federal CCDF subsidy. Smart Steps covers a portion of licensed child care for working families up to 85 percent of state median income at entry, administered by TDHS and processed locally by Signal Centers and Porter-Leath. Co-payments are sliding-scale and capped. Approved families must use a Smart Steps-enrolled provider.

TN Star-Quality, the Tennessee QRIS under TDHS, runs three tiers — 1-Star (licensed) through 3-Star (the highest, with NAEYC or similar accreditation typical at the top end). Smart Steps reimbursement rates rise with each star level. When you tour a Germantown, East Memphis, or Midtown center, the TN Star-Quality rating is the single most useful state-published quality signal. Signal Centers publishes searchable provider lists and star ratings for Shelby County.

Federal credits (no state income tax)

Tennessee has no state income tax — the Hall Tax was fully repealed in 2021. So the credit math is simpler than in most of the country. Three federal tools stack on top of any TN VPK placement or Smart Steps subsidy: the federal Child and Dependent Care Credit on IRS Form 2441, the Dependent Care FSA at most employers (up to $5,000 per family per year of pre-tax savings), and the federal Child Tax Credit. There is no state-level Child and Dependent Care Credit and no state Child Tax Credit. FedEx, AutoZone, International Paper, Methodist Le Bonheur, Baptist Memorial, Regional One, St. Jude Children's Research Hospital, and most major Memphis employers offer a Dependent Care FSA.

A two-earner Memphis household typically recovers the full $5,000 Dependent Care FSA benefit, which works out to roughly $1,250 to $1,550 in federal tax savings depending on marginal rate. The federal Child and Dependent Care Credit recovers an additional $600 to $1,200 of qualifying expenses on top.

Worked example: East Memphis family, two working parents

A two-income East Memphis family with a one-year-old in full-time licensed center care spends roughly $1,100 to $1,225 per month, or $13,200 to $14,700 per year, per the National Database of Childcare Prices for Shelby County and Porter-Leath market-rate work — about 20 percent below the comparable Nashville figure.

If the family qualifies for Smart Steps — household income at or below 85 percent of state median income — the sliding-scale co-payment lands somewhere around $120 to $300 per month, with Smart Steps covering the balance at the provider's TN Star-Quality reimbursement rate.

If the family is over the Smart Steps ceiling, the full private rate stands. A Dependent Care FSA recovers $5,000 in pre-tax savings, the federal Child and Dependent Care Credit recovers an additional $600 to $1,200, and the federal Child Tax Credit applies for each qualifying child under 17.

Where to go next

Walk through the cost calculator to model your own Memphis year with TN VPK, Smart Steps, FSA, and the federal credits factored in. Use the comparison checklist and tour questions when you start visiting centers. Read the Tennessee VPK explainer, our subsidized daycare guide, the Tennessee state cost overview, and the broader cost pillar.

For neighborhood and listing detail, see daycare in Memphis overall and the editorial best daycares in Memphis roundup. Germantown, Collierville, East Memphis, Midtown, and Cordova neighborhood guides are in progress.