How Michigan Compares
Tax Credits & Subsidies
All Michigan 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.
Michigan Childcare FAQ
How much does daycare cost in Michigan?
The average annual cost of center-based infant care in Michigan is $9,458 per year ($788/month). Family/home daycare is typically cheaper at $6,810 per year. Toddler care costs slightly less, averaging $9,959 per year for center-based care.
What is the cheapest childcare option in Michigan?
Family/home daycare is typically the most affordable option in Michigan, averaging $6,810 per year for infant care compared to $9,458 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 Michigan?
In Michigan, infant center-based care costs approximately 13.8% of the median household income ($68,505). 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 Michigan?
Center-based infant care in Michigan ($9,458/year) is comparable to the average in-state public college tuition ($14,200/year). In many other states, daycare actually costs more than college.
What childcare tax credits are available in Michigan?
All Michigan 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 Michigan have free pre-K?
No, Michigan 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.