How Kentucky Compares
Tax Credits & Subsidies
All Kentucky 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.
Kentucky Childcare FAQ
How much does daycare cost in Kentucky?
The average annual cost of center-based infant care in Kentucky is $9,685 per year ($807/month). Family/home daycare is typically cheaper at $6,973 per year. Toddler care costs slightly less, averaging $8,800 per year for center-based care.
What is the cheapest childcare option in Kentucky?
Family/home daycare is typically the most affordable option in Kentucky, averaging $6,973 per year for infant care compared to $9,685 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 Kentucky?
In Kentucky, infant center-based care costs approximately 16% of the median household income ($60,407). The federal government considers childcare affordable at 7% of household income — a standard that no state currently meets for infant care.
How does daycare compare to college tuition in Kentucky?
Center-based infant care in Kentucky ($9,685/year) is comparable to the average in-state public college tuition ($11,400/year). In many other states, daycare actually costs more than college.
What childcare tax credits are available in Kentucky?
All Kentucky 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 Kentucky have free pre-K?
No, Kentucky 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.