Child Care Cost Overview in Kentucky
Kentucky families have access to licensed child care centers, family child care homes, and nanny options.
Compared to the national average annual infant care cost of $13,184/yr, Kentucky’s center-based infant care is approximately 31% below the national average.
Average Annual Child Care Costs in Kentucky
| Age Group | Center-Based (Annual) | Family Care (Annual) | Nanny (Annual est.) |
|---|---|---|---|
| Infant (0–12 mo) | $9,080/yr | $6,898/yr | $42,240/yr |
| Toddler (12–24 mo) | $8,354/yr | $6,346/yr | $42,240/yr |
| Preschool (3–5 yr) | $7,082/yr | $5,380/yr | $42,240/yr |
| School-age (6–12 yr) | $5,902/yr | $0/yr | — |
* Nanny annual cost estimated at experienced nanny rate × 40 hrs/wk × 48 wks/yr. Actual costs vary.
Monthly Child Care Cost Calculator
Use the calculator below to estimate your family’s monthly child care costs in Kentucky.
Your Monthly Cost in Kentucky
Nanny Cost in Kentucky
Typical nanny pay rates in Kentucky range from $16/hour for entry-level to $22/hour for experienced nannies. A full-time experienced nanny (40 hrs/wk, 48 wks/yr) costs approximately $42,240/year in gross wages, plus employer taxes (Social Security 6.2%, Medicare 1.45%, FUTA 0.6%, and state UI). The minimum wage for nannies in Kentucky is $7/hour. (federal rate applies).
Child Care Tax Savings for Kentucky Families
Families can reduce their child care costs through two federal tax mechanisms:
- Child and Dependent Care Credit: A tax credit worth 20-35% of up to $3,000 in qualifying expenses for one child or $6,000 for two or more children.
- Dependent Care FSA: Pre-tax savings of up to $5,000 through an employer-sponsored account.
CCDF Child Care Subsidy in Kentucky
The Child Care and Development Fund (CCDF) subsidizes child care costs for low to moderate income families in Kentucky. Income eligibility limits are approximately $79,466 for a family of 4, based on 75% of the state median income. Families with incomes at or below 150% of the Federal Poverty Level may have copayments waived entirely. Copays for other families are capped at 7% of gross monthly income under federal rules.