Guide
Nanny vs daycare: cost and how to choose
The cost, side by side
Daycare is priced per child. For an infant at a center, the 2022 county median was $174 a week; in a licensed home, $143. Daycares that post their rates online in 2026 ask a median of $315 a week for an infant, with half between $250 and $398.
A nanny is paid by the hour for the family. The U.S. Bureau of Labor Statistics puts the national median wage for child care workers at $16.82 an hour (May 2025). That survey counts workers employed by businesses and centers, not families who hire a nanny themselves, so treat it as a floor, not a quote. At that wage, 40 hours is $673 a week and 50 hours is $841, before payroll taxes and any benefits.
With two children the math changes. Two infants at the 2022 center median cost $348 a week; a nanny's wage does not double for a second child in most families.
| Option | Weekly cost | Source |
|---|---|---|
| Licensed home daycare | $143 | 2022 county median |
| Daycare center | $174 | 2022 county median |
| Daycare center, posted rate | $315 | 2026 posted rates, median |
| Nanny, 40 hours at the median wage | $673 | May 2025 wage, before taxes |
| Nanny, 50 hours at the median wage | $841 | May 2025 wage, before taxes |
Weekly cost for one infant, full-time.
What you get with each
A daycare gives your child a group of children the same age, a set routine, several adults and backup when a teacher is out. It also comes with a state license and inspections: in the states whose records we hold, inspectors made 489,363 visits to daycares in two years, and each daycare's visits show on its page.
A nanny gives one-to-one attention at home, your own schedule, no drop-off and less contact with the colds that go around a group. The cost is that you manage the job: hiring, background checks, pay, taxes and backup care when the nanny is ill.
Hours
The typical licensed daycare opens at 7:00 AM and closes at 6:00 PM. 47.6% of daycares with hours on their state record open before 7 AM, but only 14.6% stay open to 7 PM or later and 7.3% list weekend care. If you work nights, weekends or long shifts, a nanny or a home daycare with late hours is often the only fit.
Taxes and paperwork
A nanny is usually your employee, not a contractor. If you pay a household employee more than the yearly threshold set by the IRS, you owe Social Security and Medicare taxes and may owe federal unemployment tax; IRS Publication 926 explains the rules. Daycare tuition needs no payroll, and both can count toward the federal child and dependent care credit and a dependent care account at work if you qualify.
Checklist
How to choose
- Price both for your family. Multiply the daycare rate by the number of children, then compare with a nanny's hourly rate times your hours, plus taxes.
- Your hours. Regular weekday hours fit daycare. Early, late, weekend or changing shifts fit a nanny.
- Sick days. Daycares send sick children home. A nanny can care for a mildly sick child; ask what you will do when the nanny is sick.
- Your child's age. Many families use a nanny for the first year and move to daycare or preschool later.
- Background checks. Daycare staff are checked under state rules. For a nanny, run the checks yourself and call references.
- Share a nanny. A nanny share with another family splits the cost and gives your child a playmate.
Next step
Next steps
FAQ
Questions
Is a nanny more expensive than daycare?
For one child, usually yes. 40 hours at the federal median wage for child care workers, $16.82 an hour, is $673 a week before taxes, against a 2022 center median of $174 a week for an infant. For two or more young children, the gap narrows.
How much is a nanny per week?
It depends on your area and hours. At the federal median wage for child care workers, $16.82 an hour in May 2025, 40 hours comes to $673 and 50 hours to $841, before payroll taxes.
Do I have to pay taxes for a nanny?
Often, yes. A nanny you pay above the IRS yearly threshold is a household employee, and you owe Social Security and Medicare taxes. IRS Publication 926 has the current threshold and rules.
Is daycare or a nanny better for a baby?
Both can be good. A nanny gives one-to-one care at home; a licensed daycare gives a routine, other children and inspected care. Visit daycares near your home and talk to nanny candidates before you decide.
Sources: U.S. Department of Labor, National Database of Childcare Prices (2022); U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, child care workers (May 2025) and Consumer Price Index; IRS Publication 926; state inspection records.