Here's The Income It Takes To Afford Childcare

The pandemic made it very clear that childcare isn’t just a personal issue- it’s a work issue.

For many families, lack of access to affordable and reliable childcare hinders their ability to meaningfully participate in the labor force.

On average it costs $1,230 per month (nearly $15,000 per year) to provide child care for a single infant in a child care center in the United States. A rate that when coupled with median income shows many workers simply don’t earn enough to cover the expense flat out, or have to make large financial sacrifices to do so.

We hit the numbers to find the income it takes in each state to reasonably afford daycare. The results? No state’s median household income allows workers to reasonably afford childcare.

All states’ average daycare costs when paired with the median income exceed 10% of their income on childcare (the amount recommended by the US Government.) Below you can the states with the highest income needed (and the lowest):

10 States With Highest Daycare Costs

Unsurprisingly, many of the states with the highest daycare costs (and highest incomes needed to afford those big bills) are some of the most expensive states. All 10 states require an income of over $150,000 in order not to spend more than 10% of their earnings on daycare.

10 States With Lowest Daycare Costs

These 10 states offer lower daycare costs, although many also offer lower average earnings. Even Mississippi (the state where annual daycare costs are only $5,178) still requires a household income of $59,340.

How We Determined This

We started by incorporating the average cost of childcare for an infant at a childcare center, according to Child Care Aware Of America. Since South Dakota was excluded, we did independent research to establish a cost.

Since the U.S. Department of Health and Human Services advises that daycare should amount to no more than 10 percent of a household’s budget, we then set that as a benchmark for affordability.

From there, we simply determined the maximum salary in each state where the average childcare cost would amount to no more than 10%. To account for taxes, we applied a flat rate of 14.6% (average amount paid towards taxes, social security, Medicare/Medicaid, etc.) to get a rough take home estimate.

Sadly, in many states it takes an income far above the median household income to keep daycare below 10% of earnings, showing that many workers are breaking the bank to pay for childcare.

Workers should keep in mind these numbers are the average cost of childcare for one infant in a childcare center. An older child, or choosing a home daycare or budget option, can reduce costs.

Similarly a daycare in a prime location or having multiple children, can raise costs.

There are career considerations

Daycare is simply unaffordable for many parents, leading to low and even mid-earners (particularly women) leaving the workforce rather than “paying to work.”

However, a hiatus from the workforce, even a brief one, can have long-term implications for future earnings. Single parents may find themselves in a far grimmer situation, not having the luxury of relying on another income to pay for exorbitant childcare costs or childcare assistance from a partner.

At the end of the day, it is clear childcare remains a complicated, financial problem for many workers- resulting in hard decisions that will cost them in the short-term and sometimes the long-term too.

How Much Childcare Costs In Each State- And Income Needed To Afford It

State	Income Needed	Annual Cost-1 Kid	Annual Cost- 2 Children
Alabama	$65,494	$5,715	$11,430
Alaska	$134,082	$11,700	$23,400
Arizona	$119,322	$10,412	$20,824
Arkansas	$70,914	$6,188	$12,376
California	$156,670	$13,671	$27,342
Colorado	$173,481	$15,138	$30,276
Connecticut	$171,029	$14,924	$29,848
Delaware	$122,244	$10,667	$21,334
Florida	$101,925	$8,894	$17,788
Georgia	$89,033	$7,769	$15,538
Hawaii	$157,048	$13,704	$27,408
Idaho	$80,587	$7,032	$14,064
Illinois	$153,713	$13,413	$26,826
Indiana	$136,936	$11,949	$23,898
Iowa	$114,222	$9,967	$19,934
Kansas	$136,500	$11,911	$23,822
Kentucky	$69,963	$6,105	$12,210
Louisiana	$65,127	$5,683	$11,366
Maine	$103,129	$8,999	$17,998
Maryland	$168,760	$14,726	$29,452
Massachusetts	$230,633	$20,125	$40,250
Michigan	$117,820	$10,281	$20,562
Minnesota	$175,796	$15,340	$30,680
Mississippi	$59,340	$5,178	$10,356
Missouri	$107,862	$9,412	$18,824
Montana	$104,240	$9,096	$18,192
Nebraska	$104,939	$9,157	$18,314
Nevada	$118,233	$10,317	$20,634
New Hampshire	$140,041	$12,220	$24,440
New Jersey	$141,760	$12,370	$24,740
New Mexico	$90,603	$7,906	$15,812
New York	$172,221	$15,028	$30,056
North Carolina	$106,051	$9,254	$18,508
North Dakota	$97,857	$8,539	$17,078
Ohio	$112,595	$9,825	$19,650
Oklahoma	$94,396	$8,237	$16,474
Oregon	$140,374	$12,249	$24,498
Pennsylvania	$138,998	$12,129	$24,258
Rhode Island	$149,484	$13,044	$26,088
South Carolina	$76,473	$6,673	$13,346
South Dakota	$74,616	$6,511	$13,022
Tennessee	$97,685	$8,524	$17,048
Texas	$101,765	$8,880	$17,760
Utah	$140,374	$12,249	$24,498
Vermont	$131,939	$11,513	$23,026
Virginia	$146,596	$12,792	$25,584
Washington	$157,483	$13,742	$27,484
West Virginia	$95,347	$8,320	$16,640
Wisconsin	$138,471	$12,083	$24,166
Wyoming	$116,204	$10,140	$20,280

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Author

Kathy Morris

Kathy is the head of content at Zippia with a knack for engaging audiences. Prior to joining Zippia, Kathy worked at Gateway Blend growing audiences across diverse brands. She graduated from Troy University with a degree in Social Science Education.

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Here’s The Income It Takes To Afford Childcare

How We Determined This

There are career considerations