How Arizona Compares
Tax Credits & Subsidies
All Arizona families can claim the federal Child and Dependent Care Tax Credit (CDCTC): 20-35% of up to $3,000 for one child or $6,000 for two or more (max credit: $1,050-$2,100). If your employer offers a Dependent Care FSA, you can save up to $5,000 pre-tax per year for childcare.
Arizona Childcare FAQ
How much does daycare cost in Arizona?
The average annual cost of center-based infant care in Arizona is $14,040 per year ($1,170/month). Family/home daycare is typically cheaper at $10,109 per year. Toddler care costs slightly less, averaging $10,920 per year for center-based care.
What is the cheapest childcare option in Arizona?
Family/home daycare is typically the most affordable option in Arizona, averaging $10,109 per year for infant care compared to $14,040 for center-based care — about 28% less. Other options include nanny sharing (splitting a nanny's cost with another family), au pairs, or cooperative childcare arrangements.
What percentage of income goes to childcare in Arizona?
In Arizona, infant center-based care costs approximately 19.3% of the median household income ($72,581). The federal government considers childcare affordable at 7% of household income — a standard that no state currently meets for infant care.
Is daycare more expensive than college in Arizona?
Yes. Center-based infant care in Arizona ($14,040/year) exceeds the average in-state public college tuition ($11,300/year) by $2,740. This pattern holds true in most US states.
What childcare tax credits are available in Arizona?
All Arizona families can claim the federal Child and Dependent Care Tax Credit (CDCTC) of 20-35% of up to $3,000 for one child or $6,000 for two or more children. Additionally, if your employer offers a Dependent Care FSA, you can set aside up to $5,000 pre-tax for childcare expenses. Some states offer additional state-level childcare tax credits.
Does Arizona have free pre-K?
No, Arizona does not currently offer universal pre-K for all families. Some income-eligible families may qualify for state-funded preschool programs or Head Start. Check your local school district for available pre-K options.