Under 10% of income
Comfortable. Care is real money but it does not eat the budget.
Lifestyle & family · Childcare
Can You Afford Childcare in 2026?
Daycare for one toddler runs $1,200 a month in Dallas. $2,400 a month in NYC. A nanny is often double that. For two kids, the bill can rival your rent. Plug in your city, your kids, and your income below. See what fits — and what does not.
Quick childcare cost calculator
Pick your city. Pick your kids. Pick the type of care. See the monthly bill in a second.
Advanced childcare planner
Set the age, the care type, the schedule, and your income. The sidebar updates live.
Childcare cost by city
Same care. Same age. Wildly different cost. Tap any city to load it in the planner.
| City | Per month | Per year | % of $100K income |
|---|---|---|---|
| Phoenix, AZ | $1,050 | $12,600 | 13% |
| Tampa, FL | $1,150 | $13,800 | 14% |
| Atlanta, GA | $1,200 | $14,400 | 14% |
| Dallas, TX | $1,250 | $15,000 | 15% |
| Austin, TX | $1,400 | $16,800 | 17% |
| Chicago, IL | $1,600 | $19,200 | 19% |
| Denver, CO | $1,700 | $20,400 | 20% |
| Seattle, WA | $2,000 | $24,000 | 24% |
| New York, NY | $2,400 | $28,800 | 29% |
Childcare cost breakdown
Where each childcare dollar goes each month. Tuition is the biggest slice for most families.
What counts as affordable?
The rough rule: care should cost less than 20% of your gross income. Less than 10% is easy. More than 30% is hard.
10–20% of income
Moderate. Common for two-income families. You will feel it. You can absorb it.
20–30% of income
Tight. Something else has to give. Housing, savings, or one parent's hours.
30%+ of income
Too much. Most families need help, family support, or a higher income to make it work.
Daycare vs nanny: which costs less?
Daycare is almost always cheaper. But a nanny can win when you have two or more kids — you pay one person, not two tuitions.
| Setup | 1 child | 2 children | 3 children |
|---|---|---|---|
| Daycare center | $1,250 | $2,500 | $3,500 |
| Home daycare | $950 | $1,800 | $2,400 |
| Nanny (1 person) | $3,200 | $3,400 | $3,600 |
| Nanny share (split 2 families) | $1,800 | $2,000 | $2,300 |
Daycare center
—
- Lower cost for 1 or 2 kids
- Structured days. Licensed staff.
- Less flexible if you work odd hours.
Nanny
—
- Higher cost for 1 kid. Cheaper for 3+.
- One-on-one care. Flexible hours.
- You become an employer. Tax and payroll add work.
Should one parent stay home instead?
It is a real question. Compare the after-tax salary of the lower-earning parent to the cost of full-time care.
A quick test: if the second income (after taxes and commute costs) is less than your childcare bill, staying home may save money. But also think about career growth, retirement savings, and your kids' age.
| 2nd parent salary | Take-home (after tax) | Care for 2 kids (Dallas) | Net to family |
|---|---|---|---|
| $40,000 | $32,500 | $30,000 | $2,500 |
| $60,000 | $47,000 | $30,000 | $17,000 |
| $80,000 | $62,500 | $30,000 | $32,500 |
| $100,000 | $76,000 | $30,000 | $46,000 |
Family budget impact
Childcare is the second-biggest family bill in most cities — right after housing.
Five ways to lower the bill
Each of these can shave $200 to $1,000 a month off your care budget.
Flex your work schedule
One parent starts at 6am. The other starts at 10am. You only pay for the hours nobody is home.
Try a nanny share
Split one nanny with another family. Each side pays about $1,800 a month instead of $3,400 for a solo nanny.
Check state programs
Most states have subsidies for families under a certain income. The federal Child Care Tax Credit can return up to $2,100 per kid.
Ask family for help
Grandparents or close relatives one or two days a week can drop you from full-time to part-time care.
Use a Dependent Care FSA
If your employer offers one, you can set aside $5,000 pre-tax for childcare. That saves about $1,500 a year in taxes.
Real family examples
A few real-world scenarios. The first card updates when you change your city in the planner.
How much salary do you need?
Two kids in daycare in a major metro can add $25,000 to $60,000 a year to the salary you need.
Frequently asked questions
How much does childcare cost?
Full-time daycare for one toddler runs about $1,050 in Phoenix, $1,250 in Dallas, $2,000 in Seattle, and $2,400 in New York. A full-time nanny is roughly double daycare in most cities.
What income do you need for daycare?
The rough rule is 10% to 20% of gross income. At $1,500 a month care, that means a household income of about $90,000 to $180,000.
Is daycare cheaper than a nanny?
Yes for one or two kids. A daycare for two costs about $2,500 a month in Dallas. A nanny costs about $3,400. But a nanny can win for three or more kids.
How much should childcare cost relative to income?
Under 10% is easy. 10% to 20% is normal. 20% to 30% is tight. Over 30% is too much for most families to sustain without help.
Which states have the cheapest childcare?
Texas, Arizona, Georgia, and Florida have the lowest averages. A spot in Phoenix or Dallas can cost half what the same care costs in Seattle or NYC.
Calculate your childcare budget
Run your city, your kids, your care type, and your income in the planner. Then check your take-home pay.