Child care costs eat up 8% of paychecks for US families

US households spending on child care currently direct an average of 8% of their monthly salary toward the service, according to a report from Bank of America Institute using September data.

The bank analyzed actual payments made by its customers and found that this expense reduces the cash available for rent, food, and transport. The pressure is heaviest on families with lower incomes. The average for low and middle-income households was 8.6% of earnings. High-income households spent 7.3%.

A specific 7.7% of the households in the bank's sample paid more than $2,000 per month for care in 2026. That monthly cost totals over $24,000 annually. Susan Gale Perry, the executive director of Child Care Aware of America, noted that families are forced to absorb costs that rival or exceed their other major monthly bills.

Child Care Aware of America calculated the national average annual price at $13,184 in 2025. Prices vary by location and age of the child. In New York State, the average annual cost for infant care in a center was $20,978. In home-based care, the average was $16,848.

The 8% average masks differences in how families manage the expense. Bank of America noted that some households may be cutting hours of care or using family members. The sector also saw employment drop 0.7% in the year leading up to September. This decline may limit the number of available slots and hours.

State governments are moving to address waitlists. New York City announced on October 5, 2026, a plan to issue vouchers to remove more than 10,000 children from the waiting list. Invitations will be sent out gradually based on eligibility. Governor Kathy Hochul said no family should struggle to pay for the care they need.

New Jersey reopened its Child Care Assistance Program on April 9, 2026. The program targets working families who meet income requirements. Stephen Cha, the Commissioner of Human Services, described child care as a necessity rather than a luxury for most families in the state. Applicants can check eligibility on ChildCareNJ.gov.

A federal rule that took effect on July 13, 2026, removed the mandatory cap on subsidy copays. States can still enforce their own limits. Families on waiting lists in New York should check MyCity for invitations. In New Jersey, local agencies must determine eligibility within 30 days of receiving complete documentation.