Cost Of Child Care In Minnesota: A Breakdown for 2026

A comprehensive analysis of Child Care costs for working parents, employers, and government agencies in the State of Minnesota.

Frigid winters aren’t the only thing Minnesotan parents need to worry about—they also have a Child Care cost problem.

• The average annual fee per child (4-year-old) is an enormous $15,733, or approximately $1,311 monthly.
• Infant care is even more expensive, with the average annual cost at a whopping $20,421, or $1,702 monthly.

Although some parents may find solace in the fact that Child Care costs decrease as children get older, this cost is still unmanageable for many parents across the state. But this doesn’t change the fact that once your toddler needs to attend a center, the cost is more than in-state college tuition.

Luckily, we’ve compiled this guide so you have all the information you need to make the most well-informed decision about care for your children. We’ll cover:

• Why is it that Child Care costs in Minnesota are so high?
• The average costs of Child Care by city, age, and type
• Grants and subsidies for making Child Care more affordable in Minnesota

How Much Does Child Care Cost in Minnesota (By Type & Age)

Here’s a breakdown of the average annual and monthly cost of Child Care in Minnesota:

Age Group	Average Cost of Child Care Center (Monthly / Annually)	Average Cost of Family Child Care Home (Monthly / Annually)
Infant	$1,702 / $20,421	$818 / $9,821
Toddler	$1,504 / $18,042	$786 / $9,434
4-Year-Old	$1,311 / $15,733	$748 / $8,978

Minnesota Child Care Cost Breakdown by City

Minneapolis Child Care Costs

• Monthly income – The median household income is about $6,737 per month
• Rent (1BR) – Typical 1‑bedroom rent is $1,300/month
• Child care cost comes out to $2,660/month, infant care cost is $2,791/month
• Rent vs. child care – Child care costs 105% more than rent
• Income vs. child care – Child care consumes 39% of median monthly income

Saint Paul Child Care Costs

• Monthly income – The median household income is about $6,116 per month
• Rent (1BR) – Typical 1‑bedroom rent is $1,200/month
• Child care cost comes out to $2,548/month, infant care cost is $2,670/month
• Rent vs. child care – Child care costs 112% more than rent
• Income vs. child care – Child care consumes 42% of median monthly income

Duluth Child Care Costs

• Monthly income – The median household income is about $5,734 per month
• Rent (1BR) – Typical 1‑bedroom rent is $1,263/month
• Child care cost comes out to $2,243/month, infant care cost is $2,367/month
• Rent vs. child care – Child care costs 78% more than rent
• Income vs. child care – Child care consumes 39% of median monthly income

Grants and Subsidies for Child Care in Minnesota

Here are a few key financial assistance programs available for Minnesota parents to help with Child Care costs:

Child Care Assistance Program (CCAP)

Minnesota’s main child care subsidy helps eligible families pay for child care while parents work, look for work, or attend school/training. It includes various “subprograms,” such as MFIP/DWP-related child care and the Basic Sliding Fee.

• Eligibility (Income/Age/Location):
  • Kids: Generally 12 and under (with some exceptions for special needs). (County eligibility rules still apply.)
  • Income (entrance):
    • MFIP/DWP families: income must be ≤ 67% of State Median Income (SMI) at application.
    • All other families: income must be ≤ 47% of SMI at application.
  • Continuing eligibility (important nuance):
    • During the 12-month eligibility period, families can stay eligible until income exceeds 85% of SMI.
    • At redetermination, income must be ≤ 67% of SMI.
• Amount/Benefit:
  • CCAP pays part of your provider bill; families pay a copayment based on income and family size (the “sliding fee”).
• How/Where to Apply: Apply through your county or tribal human services office (they handle eligibility + documentation).

Early Learning Scholarships

These scholarships help pay for high-quality early learning for kids birth to kindergarten entry, and they’re designed to be used at programs participating in Parent Aware (Minnesota’s quality rating system).

• Eligibility (Income/Age/Location):
  • Income: Eligible up to 85% of SMI, with priority for families at 47% of SMI.
  • Families can also qualify/receive priority through certain public program participation (depending on pathway).
• Amount/Benefit:
  • Minnesota law requires tiered scholarship amounts; for 4-star Parent Aware programs serving priority groups, the scholarship amount must be at least the cost of full-time care at the 75th percentile of the market rate survey (per statute).
• How/Where to Apply: Apply through your regional scholarship administrator (“hub”) / scholarship application process listed by DCYF.

Voluntary Pre-Kindergarten (VPK) / School Readiness

This is Minnesota’s school-based pre-K system for eligible 4-year-olds. One key update: School Readiness Plus ended June 30, 2025, and VPK begins in FY26.

• Eligibility (Income/Age/Location):
  • Age: Generally 4 years old (the program is for eligible four-year-olds).
  • Eligibility is risk-factor based (examples in the state comparison chart include IEP/plan, screening-identified risk factor, homelessness, American Indian status, etc.).
  • Fee-for-service option: A child who doesn’t meet eligibility criteria may still participate on a fee-for-service basis if there’s capacity.
• Amount/Benefit:
  • Eligible children get publicly funded instructional programming; districts must use a sliding fee schedule for fee-for-service participants and waive fees for families unable to pay.
• How/Where to Apply: Apply through your local school district/charter during pre-K registration (districts control seats and timing).

Minnesota Child Tax Credit (CTC)

A refundable state tax credit starting tax year 2024: $1,750 per qualifying child, and you can even opt into advance payments for the next year’s credit.

• Eligibility (Income/Age/Location):
  • Must have a qualifying child under age 18 (i.e., 0–17).
  • The credit amount is calculated using Minnesota schedules (it phases down as income rises).
• Amount/Benefit:
  • $1,750 per child, refundable (so you can get it even if you owe $0).
  • Phase-down mechanics are handled via Schedule M1CWFC (Minnesota publishes the reduction method in the form instructions).
• How/Where to Apply: Claim it on your Minnesota income tax return using the state schedules (M1DQC + M1CWFC).

These programs allow families to pay for various types of Child Care, including center-based, home-based, and faith-based programs.

Why is Child Care in Minnesota so expensive?

The cost of Child Care is often attributed to the quality of the service across the state:

• First, Minnesota has a high percentage of accredited Child Care centers. Nearly half (47%) of center-based Child Care programs have a Parent Aware Rating.
• Second, Child Care in Minnesota also has stricter teaching standards and follows a ratio of 4:1 for infants, or four children to every adult. In contrast, this ratio can be as high as 9:1 in other states. A Lower child-teacher ratio ensures the safety and attention children need to thrive in their early years.

However, more must be done to assist lower-income families in securing the same Child Care opportunities for their children.

This is best represented by the fact that Child Care costs increased by 22% during and after the pandemic (between January 2020 and September 2024), quickly moving Minnesota into 7th place among the most expensive states for Child Care in the US.

Factors Contributing to the Price of Child Care

In general, several factors contribute to the high cost of Child Care in Minnesota, including:

• Staffing and training costs: As mentioned earlier, Child Care centers in Minnesota have stricter teaching standards and lower child-teacher ratios, which require more staff members. These additional staff members need to be trained and compensated adequately.
• High demand: With a growing population of working parents in need of Child Care services, there is a higher demand for quality Child Care options, leading to increased prices.
• Operational expenses: Rent, utilities, insurance, and other operational expenses can also contribute to the overall cost of providing Child Care services. These expenses can be significant in cities like Minneapolis, where the cost of living is higher.
• Cost of quality education and care: Quality Child Care services include a structured curriculum, nutritious meals, and a safe and stimulating environment for children. These factors require financial investment to maintain high-quality standards.

While these factors may not be unique to Minnesota, the combination of strict regulations and high demand in the state has skyrocketed Child Care costs.

Other Expenses Involved in Child Care

In addition to the annual cost of Child Care, you’ll also have to consider food, activities, and some of the hidden costs associated with full-time education.

Food

While some Child Care centers will provide children with food and snacks throughout the day, others may require you to pack food for your child to bring. If your children have any particular dietary requirements, discuss these with the center in advance to see whether they can accommodate your child or if you’ll need to provide specialized meals.

School trips

Some schools offer optional trips your child can attend for an extra fee. These could include a visit to a local museum, historical site, or educational tour. Although these day trips are unlikely to cost a significant amount every year, it’s important to factor them into your expenses.

Activities

If your child is interested in a particular subject at school, they might like to attend an after-school club that supports and nurtures their learning in the topic. These will usually be charged as an extra fee on top of the standard flat rate for enrollment.

Statistics on Child Care in Minnesota

Minnesota’s Female Population Are Disproportionately Affected

• Minnesota’s labor force participation is one of the highest in that nation (66%), but they are more likely than men to work part-time or leave the workforce due to Child Care issues.
• Over 16% of mothers with children under age five report Child Care problems as the the primary reason why they aren’t looking for employment.
• About 74% of mothers with children under 18 are in the labor force, but many report difficulty finding affordable, high-quality Child Care options.
• Child Care issues are often cited as a significant factor in women’s decisions to leave the workforce.
• The lack of affordable Child Care options in Minnesota not only affects women’s ability to participate in the labor force but also hurts the state’s economy.

Available, Affordable Child Care is Very Difficult to Find in Minnesota

• As of 2022, there was a shortage of over 40,000 Child Care spots outside the Twin Cities metro area.
• Minnesota’s rural areas are particularly affected by this lack of access to Child Care, with many families struggling to find available and affordable Child Care options. Options are primarily family-based centers, which are on the decline.
• In Minnesota, 37% of Child Care providers offer care during non-traditional hours, making it difficult for most families with non-traditional work schedules to find care that fits their needs.
• The lack of available, affordable Child Care in Minnesota both reduces families’ ability to work and contribute to the economy (estimated losses are over $2 billion), andimpacts children’s development and future success.

Cost of Child Care in Minnesota vs. Top 10 States

How Minnesota Child Care Compares Against the 10 states with the highest Child Care, preschool, infant care, and day care annual costs as of 2026:

1. Washington, D.C. ($20,981)
2. Massachusetts ($20,669)
3. New Jersey ($17,503)
4. New York ($17,343)
5. Illinois ($17,238)
6. Washington ($16,908)
7. California ($16,665)
8. Rhode Island ($16,212)
9. Vermont ($15,877)
10. Nebraska ($15,738)

(Average annual costs for full-time center-based care of a 4-year-old).

Frequently Asked Questions

What’s the overall cost of Child Care in Minnesota?

Although the average cost figures may help you get an idea of how much of a financial commitment Child Care may be, they do not provide exact answers. Your Child Care expenses will ultimately depend on your child’s needs, whether that includes specialized diets or extracurricular activities.

If your child wants to learn soccer, be prepared for the extra expenses for participation and even laundry costs. If you’d like them to learn a second language, expect to pay for the additional lessons. And if your child just wants to click in and out of day care every day, then you can reasonably expect to only pay for the Child Care alone.

What is the average cost of Child Care in Minnesota?

The average annual cost of infant care in Minnesota is $20,129—that’s $1,677 per month.

Child Care for a 4-year-old costs $15,544, or $1,295 each month.

How can I find licensed Child Care providers in Minnesota?

To find licensed Child Care providers in Minnesota, you can use TOOTRiS, a reliable online platform that connects parents with licensed Child Care providers. TOOTRiS offers a user-friendly interface where you can search for Child Care providers based on your location, preferred schedule, and specific requirements.

We provide detailed profiles of licensed providers, including their qualifications, experience, facility information, and parent reviews. Visit the TOOTRiS website or download our mobile app to start exploring licensed Child Care options in Minnesota.

Are there quality rating systems for Child Care programs in Minnesota?

Yes, Minnesota has a quality rating and improvement system called Parent Aware. It rates Child Care programs based on quality indicators and provides parents with information to make informed choices about their child’s care.

How much of your budget should go to daycare?

According to the Department of Health and Human Services, families should aim to spend no more than 7% of their household income on Child Care expenses. This percentage can vary depending on your family’s financial situation and regional cost of living but be careful not to overspend in this area. Seek subsidies and grants that make Child Care more affordable.

Are there any programs or initiatives in place to help families with the high cost of Child Care?

Yes, there are various programs and initiatives in place to help families with the high cost of Child Care, such as:

• Child Care Subsidy: Many states offer subsidies for low-income families to help cover the cost of Child Care.
• Head Start and Early Head Start: These are federally funded programs that provide free or low-cost early education and Child Care services for eligible families.
• Tax Credits: Families can claim tax credits such as the Child and Dependent Care Credit to offset some of the costs of Child Care.
• Employer Benefits: Some employers may offer options such as Flexible Spending Accounts or Dependent Care Assistance Programs to help employees cover Child Care expenses.

What are the tax advantages for businesses to offer Child Care support? 

Investment in child care isn’t just a benefit for families – it’s a strategic advantage for employers and the economy. When companies support reliable, affordable care, they help reduce absenteeism, improve retention and productivity, and build a more stable, engaged workforce. At the same time, families benefit through increased income for essentials like food, education, and savings, and children gain stronger early learning experiences.

To accelerate these investments, the federal government has significantly enhanced the Employer-Provided Child Care Tax Credit (IRC Section 45F) beginning January 1, 2026. Under the updated rules, eligible businesses can claim:

• 40% of qualified child care expenses, or
• 50% for eligible small businesses,
• With annual credit caps increased to $500,000–$600,000, plus an additional 10% credit for child care resource and referral costs.

Importantly, employers no longer need to operate an on-site center – contracted care, referral services, and third-party platforms may now qualify, making child care support more accessible for businesses of all sizes.

In addition to 45F, employers can stack other tax-advantaged tools — like Dependent Care Assistance Plans (DCAPs) and Dependent Care FSAs (DCFSA) — to lower employee costs and increase overall savings. Combined, these federal incentives can significantly offset the cost of supporting employee child care while strengthening recruitment, retention, and employee well-being.

Learn more in TOOTRiS’ Executive Guide to Leveraging Child Care Tax Incentives to Maximize Workforce ROI.

Beyond federal benefits, a majority of states are now offering tax credits or incentive programs for businesses to stimulate economic growth by providing Child Care solutions to their employees. Here is a state-by-state rundown of available business tax credits, incentives, or current legislation pertaining to potential Child Care tax credits for employers – 2025 State-by-State Guide to Business Child Care Tax Credits & Incentives. 

What is the ROI of providing Child Care Benefits? 

Return on Investment (ROI) is a measure of how much profit or cost savings a company can expect to receive from an investment. In the context of Child Care Benefits, ROI refers to the financial benefits that a company can expect to receive from offering Child Care Benefits to its employees. But the financial benefits of offering Child Care Benefits can include (as also mentioned above): 

• Increased employee retention 
• Increased employee productivity 
• Reduced absenteeism 
• Reduced turnover costs 
• Improved recruitment and talent acquisition 
• Improved employee health 

In looking to calculate the ROI of a Child Care Benefit, employers must carefully evaluate the total saving from the benefit (through reduced turnover costs, health care savings, increased productivity, etc.), and the overall cost of the benefit. To learn more, see our CFO’s Guide to Child Care Benefit ROI: A Statistical Analysis 

What are the top Child Care Benefit programs employers can implement? 

There are several different types of Child Care Benefits programs that employers can offer. Each one has a different level of commitment, finances, and impact on employees. The different models of implementing Child Care Benefits include: 

• On-Site Child Care 
• Subsidized Child Care 
• Dependent Care Flexible Spending Accounts (DCFSAs) 
• Referral Services 
• TOOTRiS Child Care Benefits 

To understand the benefits and challenges to each, review the section on Choosing Child Care Benefit Programs in the CFO Guide.  

Resources for Minnesota Employers

• 45F Tax Credit: Employers looking to offer child care benefits can learn about the 45F Employer-Provided Child Care Tax Credit at 45f.org/states/minnesota.
• Tri-Share Program: Discover how employers, employees, and the state can share child care costs through the TriShare model at trisharechildcare.com/states/minnesota.