New Mexico Childcare Costs (2026)
Average daycare prices for center-based and family care
How New Mexico Compares
Tax Credits & Subsidies
All New Mexico 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.
New Mexico Childcare FAQ
How much does daycare cost in New Mexico?
The average annual cost of center-based infant care in New Mexico is $13,521 per year ($1,127/month). Family/home daycare is typically cheaper at $9,735 per year. Toddler care costs slightly less, averaging $12,000 per year for center-based care.
What is the cheapest childcare option in New Mexico?
Family/home daycare is typically the most affordable option in New Mexico, averaging $9,735 per year for infant care compared to $13,521 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 New Mexico?
In New Mexico, infant center-based care costs approximately 23% of the median household income ($58,722). 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 New Mexico?
Yes. Center-based infant care in New Mexico ($13,521/year) exceeds the average in-state public college tuition ($7,300/year) by $6,221. This pattern holds true in most US states.
What childcare tax credits are available in New Mexico?
All New Mexico 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 New Mexico have free pre-K?
No, New Mexico 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.