A short, honest guide to Indiana daycare.
Indiana daycare costs sit slightly below the national center-based average, but the Indianapolis Hamilton County collar (Carmel, Fishers, Zionsville, Noblesville, Westfield) is now firmly inside the Midwest premium tier, with infant care at Level 4 programs frequently quoted at $1,400 to $1,600 per month. Outside that ring, Indiana remains an affordable state for licensed center-based care.
On My Way Pre-K
Indiana's On My Way Pre-K program, administered by FSSA, funds free preschool seats for income-qualifying four-year-olds at Paths to QUALITY Level 3 and Level 4 programs, accredited Pre-K classrooms in public schools, and certified Head Start programs. Eligibility is at or below 150 percent of federal poverty in most counties, with priority for families in workforce training, education, or employment. Read our Indiana On My Way Pre-K walkthrough.
Source: Indiana FSSA On My Way Pre-K Annual Report, 2024-2025. Approximately 8,200 four-year-olds enrolled in Indiana On My Way Pre-K in 2024-2025, with the largest enrollments in Marion, Lake, Allen, and Vanderburgh counties.
Paths to QUALITY
Paths to QUALITY is the Indiana Quality Rating and Improvement System for licensed centers, licensed family child care homes, registered ministries, and unlicensed registered providers, administered by FSSA. Programs progress from Level 1 (health and safety baseline) through Level 4 (national accreditation through NAEYC, NAFCC, NECPA, or another approved body). Level 3 and Level 4 represent meaningful quality investment above licensing minimums. Filter our directory by Paths to QUALITY level.
Indiana licensing and ratios
FSSA's Office of Early Childhood and Out-of-School Learning licenses and inspects every legal child care center, licensed family child care home, and registered child care ministry in the state. Center ratios are 1:4 for infants under twelve months, 1:5 for twelve to sixteen months, 1:5 for sixteen to twenty-four months, 1:8 for two-year-olds, 1:10 for three-year-olds, 1:12 for four-year-olds, and 1:15 for five-year-olds. Every provider in our directory is cross-checked monthly.
Financial help in Indiana
The Indiana Child Care Development Fund (CCDF) voucher, administered by FSSA, funds subsidized care for working families up to a state-set income threshold. On My Way Pre-K, federal Head Start, and Early Head Start fund additional free seats. All families can use the federal Child and Dependent Care Tax Credit and a Dependent Care FSA if offered through work. Indiana does not currently offer a state-level child care tax credit. Our tax credit explainer walks through the math.
Where Indiana parents tend to overpay
- Defaulting to a Hamilton County premium center when a Level 4 Paths to QUALITY program in Lawrence Township or Beech Grove runs $200 to $400 less per month.
- Skipping the On My Way Pre-K application; the income cap is higher than most families assume.
- Skipping the CCDF voucher application; eligibility extends well into middle-income working households.
Before your first tour, download the free DaycareSquare comparison checklist and the tour questions list.
