How Texas Compares
Tax Credits & Subsidies
All Texas 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.
Texas has no state income tax, which means more of your paycheck stays in your pocket — partially offsetting childcare costs.
Texas Childcare FAQ
How much does daycare cost in Texas?
The average annual cost of center-based infant care in Texas is $11,349 per year ($946/month). Family/home daycare is typically cheaper at $8,171 per year. Toddler care costs slightly less, averaging $9,324 per year for center-based care.
What is the cheapest childcare option in Texas?
Family/home daycare is typically the most affordable option in Texas, averaging $8,171 per year for infant care compared to $11,349 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 Texas?
In Texas, infant center-based care costs approximately 15.5% of the median household income ($73,035). 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 Texas?
Yes. Center-based infant care in Texas ($11,349/year) exceeds the average in-state public college tuition ($10,800/year) by $549. This pattern holds true in most US states.
What childcare tax credits are available in Texas?
All Texas 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 Texas have free pre-K?
No, Texas 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.