Child Care Cost Overview in Texas
Texas has the largest licensed child care market by capacity. The Texas Health and Human Services Commission (HHSC) manages the Texas Rising Star quality rating system and the Child Care Services (CCS) subsidy program. The median family income for a family of 4 is $110,719/year.
Compared to the national average annual infant care cost of $13,184/yr, Texas’s center-based infant care is approximately 24% below the national average.
Average Annual Child Care Costs in Texas
| Age Group | Center-Based (Annual) | Family Care (Annual) | Nanny (Annual est.) |
|---|---|---|---|
| Infant (0–12 mo) | $9,965/yr | $9,068/yr | $53,760/yr |
| Toddler (12–24 mo) | $9,168/yr | $8,343/yr | $53,760/yr |
| Preschool (3–5 yr) | $7,773/yr | $7,073/yr | $53,760/yr |
| School-age (6–12 yr) | $6,477/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 Texas.
Your Monthly Cost in Texas
Nanny Cost in Texas
Typical nanny pay rates in Texas range from $22/hour for entry-level to $28/hour for experienced nannies. A full-time experienced nanny (40 hrs/wk, 48 wks/yr) costs approximately $53,760/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 Texas is $7/hour. (federal rate applies).
Child Care Tax Savings for Texas 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 Texas
The Child Care and Development Fund (CCDF) subsidizes child care costs for low to moderate income families in Texas. Income eligibility limits are approximately $83,039 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.