South Dakota Childcare Costs (2026)
Average daycare prices for center-based and family care
How South Dakota Compares
Tax Credits & Subsidies
All South Dakota 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.
South Dakota has no state income tax, which means more of your paycheck stays in your pocket — partially offsetting childcare costs.
South Dakota Childcare FAQ
How much does daycare cost in South Dakota?
The average annual cost of center-based infant care in South Dakota is $7,862 per year ($655/month). Family/home daycare is typically cheaper at $5,661 per year. Toddler care costs slightly less, averaging $7,200 per year for center-based care.
What is the cheapest childcare option in South Dakota?
Family/home daycare is typically the most affordable option in South Dakota, averaging $5,661 per year for infant care compared to $7,862 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 South Dakota?
In South Dakota, infant center-based care costs approximately 11.3% of the median household income ($69,457). 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 South Dakota?
Center-based infant care in South Dakota ($7,862/year) is comparable to the average in-state public college tuition ($9,800/year). In many other states, daycare actually costs more than college.
What childcare tax credits are available in South Dakota?
All South Dakota 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 South Dakota have free pre-K?
No, South Dakota 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.