Data Sources & Methodology

How we source our data — building EEAT for accurate, trustworthy child care cost estimates

At ChildCareCostCalc, we believe that accurate child care cost estimates depend on high-quality, authoritative data. Every number you see on our site is backed by official government sources, peer-reviewed industry reports, and legally verified regulatory documents. Below we detail exactly where our data comes from and how we use it.

1. Child Care Costs by State

Our state-level child care cost data is derived from the Child Care Aware of America annual report and cross-referenced with U.S. Census Bureau median income data from the DOJ U.S. Trustee Program. Cost percentages are based on WalletHub's analysis of the CCAoA 2025 data.

Sources:

  • Child Care Aware of America — "Demanding Change: Repairing Our Child Care System" (2025 annual report)
  • U.S. Census Bureau — American Community Survey (ACS) median household income estimates
  • U.S. Department of Justice — U.S. Trustee Program median income standards
  • WalletHub — "2025 Child Care Costs by State" analysis

Used in: Monthly Child Care Cost Calculator, Cross-State Cost Comparison, State Guides

2. Nanny & Household Employee Data

Nanny wage data comes from the Bureau of Labor Statistics Occupational Employment Statistics and NannyKeeper's state-by-state wage survey. Minimum wage rates are verified against state labor department websites.

Sources:

  • U.S. Bureau of Labor Statistics (BLS) — Occupational Employment and Wage Statistics (OEWS), SOC 39-9011 (Childcare Workers) and personal care aides
  • NannyKeeper — State-by-state nanny wage survey (2025)
  • State labor department websites — Official minimum wage rates for each state
  • U.S. Department of Labor — Fair Labor Standards Act (FLSA) household employee guidelines

Used in: Nanny Cost Calculator, Nanny vs Daycare, Nanny Share Calculator

3. Tax Rules

The Child and Dependent Care Credit calculation follows IRS Form 2441 instructions and Pub 503. DCAP limits are set by IRS Revenue Procedure updates. We use the tax year 2025–2026 rules.

Sources:

  • Internal Revenue Service (IRS) — Form 2441, "Child and Dependent Care Expenses"
  • IRS — Publication 503, "Child and Dependent Care Expenses"
  • IRS — Revenue Procedure (annual) for Dependent Care Assistance Program (DCAP) contribution limits
  • IRS — Revenue Procedure 2024-40 (2025 tax year inflation adjustments)

Used in: Tax Savings Calculator

4. CCDF Subsidy Rules

Subsidy eligibility thresholds are based on the 2025–2027 CCDF State Plans published by the Office of Child Care, Administration for Children and Families, U.S. Department of Health and Human Services.

Sources:

  • U.S. Department of Health and Human Services (HHS) — Office of Child Care, CCDF State Plans for 2025–2027
  • HHS — Administration for Children and Families (ACF), CCDF final rule (2024)
  • State child care lead agencies — Published subsidy income eligibility guidelines

Used in: Subsidy Eligibility Calculator

5. Au Pair Program Costs

Au pair cost estimates follow U.S. Department of State regulations for the J-1 visa Exchange Visitor Program, including minimum weekly stipend ($195.75), education contribution ($500), and standard agency fee ranges.

Sources:

  • U.S. Department of State — Bureau of Educational and Cultural Affairs, J-1 Exchange Visitor Program regulations (22 CFR Part 62)
  • U.S. Department of State — Au Pair program minimum benefit requirements (weekly stipend, education contribution)
  • Major au pair agencies — Published program fees (Cultural Care, AuPairCare, GoAuPair, etc.)

Used in: Au Pair Cost Calculator

Methodology

Our calculators apply the following methodology to produce cost estimates:

Cost Averaging & Normalization

When multiple data points exist for a single metric (e.g., center-based infant care cost in California), we use a weighted average approach. Primary sources (CCAoA, BLS) receive higher weight than secondary analyses. All costs are normalized to monthly and annual figures for consistent comparison.

Income Percentage Calculations

Costs as a percentage of income are calculated using state median household income from the U.S. Census Bureau ACS. We use the most recent 5-year estimates to smooth year-to-year fluctuations. Single-parent income calculations adjust the median downward by 35% to reflect the single-earner household dynamic.

Tax Credit & FSA Estimations

The Child and Dependent Care Credit is calculated by applying the applicable percentage (based on AGI) to qualifying expenses up to the IRS limit per child. DCAP savings are calculated using the marginal federal tax rate plus average state tax rate. We assume the taxpayer uses the lesser of actual expenses or the DCAP limit.

Subsidy Eligibility

Subsidy eligibility is determined by comparing the family's income to the state-specific CCDF income threshold. We use the maximum income limit as a percentage of the State Median Income (SMI) as reported in each state's CCDF Plan. Families at or below 85% of SMI for their state and family size are shown as potentially eligible.

Au Pair Cost Modeling

Au pair costs are modeled as the sum of: (1) the minimum weekly stipend mandated by the State Department, (2) the education contribution, (3) agency program fees (one-time and annual ranges), and (4) room and board estimates at the local cost of living level. Optional add-ons such as car insurance and cell phone plans are included as configurable items.

Data Refresh Cycle

We update our underlying data on the following schedule:

  • Monthly: Minimum wage rate verification across state labor department websites.
  • Annually (Q1): CCAoA annual report, IRS Revenue Procedure updates, BLS OEWS annual data release.
  • Biennially: CCDF State Plans (released every two years for a triennium).
  • As needed: Federal regulatory changes (State Department au pair rules, IRS tax code changes, DOL FLSA updates).

Commitment to Accuracy: We strive to keep all data current and accurate. If you believe any figure on our site is outdated or incorrect, please contact us so we can investigate and correct it promptly.