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Cost Of Child Care In Vermont: A Breakdown For 2026

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

The Child Care problem in the U.S. is becoming unbearable. In 2026, parents from several income brackets find paying for Child Care increasingly challenging. This issue has become so important that many Senators, including those from Vermont, have started to include Child Care reform in their policy plans.

You need the right toolbox of information to make the best decisions on care for your kids. In this article, we go over:

  • The costs of Child Care in Vermont by type and age, as well as costs for each of Vermont’s top five cities.
  • A breakdown of what you’re paying for with Child Care Financial assistance programs for Child Care in the state

Let’s go!

Child Care Cost in Vermont By Age & Type

Vermont’s cost situation is a prime example of how Child Care prices are becoming too problematic to ignore. According to Child Care Aware of America, Vermont ranks as the third-most expensive state for Child Care. For scale, minimum wage earners in Vermont would have to give more than half of their total income (66.7%) to afford the cost of infant care. To help any Vermonters plan their Child Care budget, here are some of the state’s Child Care cost figures:

Center-Based:

  • Infant: $18,710 annually / $1,559.17 monthly
  • 4-Year-Old: $15,877 annually / $1,323.08 monthly
  • School-Age: $6,442 annually / $536.83 monthly

Family-Based:

  • Infant: $12,395 annually / $1,032.92 monthly
  • 4-Year-Old: $11,818 annually / $984.83 monthly
  • School-Age: $5,595 annually / $466.25 monthly

For a more concrete example, a family with one infant and one 4-year-old will spend about $2,883 per month, or $34,587 a year. For a median-income family of four, that could represent over 26% of household earnings — well beyond the federal affordability threshold of 7%.

Cost of Child Care in Vermont Across Major Cities

In the following section:

  • Rental prices come from Zumper’s rental tracking tool.
  • Income levels from the US Census.

You might notice per month costs for these cities don’t exactly line up with the statewide averages we’ve listed above. Here’s why:

  • Cities tend to have higher costs: Statewide averages include both urban and rural areas, but larger cities like Burlington, which are more expensive, can skew these averages.
  • Grants and subsidies are excluded: Provider-side subsidies are usually passed along as reduced prices to you.
  • Hourly rate estimates: The figures are based on hourly rates, so they might appear higher than what you’d actually pay. Your children may not be in full-time care all year, and discounts are often available for longer commitments.

That said, let’s begin:

City Child care – hourly Child care – weekly Child care – monthly Infant care – hourly Infant care – weekly Infant care – monthly
Burlington $19.79 $791.60 $2,572.70 $22.64 $905.60 $2,943.20
South Burlington $21.15 $846.00 $2,749.50 $23.00 $920.00 $2,990.00
Rutland $20.00 $800.00 $2,600.00      
Barre $20.35 $814.00 $2,645.50      
Montpelier $22.35 $894.00 $2,906.00      

 

Burlington Child Care

  • Child care cost: $2,572.70; infant care: $2,943.20.
  • Median monthly income: about $5,925.75 (Census QuickFacts).
  • Average 1-bedroom rent: $1,850/month (Zumper).
  • Comparison: Child care is roughly 39% more expensive than rent. It consumes ~43.4% of monthly income; infant care takes ~49.7%.

South Burlington Child Care

  • Child care cost: $2,749.50; infant care: $2,990.00.
  • Median monthly income: about $8,888.92 (Census QuickFacts).
  • Average 1-bedroom rent: $1,850/month (Zumper).
  • Comparison: Child care is roughly 49% more expensive than rent. It consumes ~30.9% of monthly income; infant care takes ~33.6%.

Rutland Child Care

  • Child care cost: $2,600.00.
  • Median monthly income: about $4,806.25 (Census QuickFacts).
  • Average 1-bedroom rent: $1,295/month (Zumper).
  • Comparison: Child care is roughly 101% more expensive than rent. It consumes ~54.1% of monthly income.

Barre Child Care

  • Child care cost: $2,645.50.
  • Median monthly income: about $5,468.75 (Census QuickFacts).
  • Average 1-bedroom rent: $1,200/month (Zumper).
  • Comparison: Child care is roughly 120% more expensive than rent. It consumes ~48.4% of monthly income.

Montpelier Child Care

  • Child care cost: $2,906.00.
  • Median monthly income: about $6,752.50 (Census QuickFacts).
  • Average 1-bedroom rent: $1,400/month (Zumper).
  • Comparison: Child care is roughly 108% more expensive than rent. It consumes ~43.0% of monthly income.

Child Care Grants & Subsidies in Vermont

Here are four subsidies, grants, and financial assistance programs available to Vermont families for affordable Child Care:

Child Care Financial Assistance Program (CCFAP)

The CCFAP is Vermont’s primary child care subsidy program administered by the Department for Children and Families (DCF) Child Development Division. It helps eligible families pay for regulated child care, preschool, and afterschool services.

  • Amount / Copay: Family shares (copays) range from $0 to $425 per week based on family size and income. The state pays providers the remaining authorized costs. As of October 2024, income guidelines increased to 575% of the Federal Poverty Level.
  • Eligibility:
    • Have an accepted service need (reason) for child care, such as employment, education, or training at an accredited institution
    • Use regulated child care services
    • Meet income guidelines (up to 575% of Federal Poverty Level as of October 2024)
    • Live in Vermont and have less than $1 million in assets
  • How to Apply: Submit an online application through the Child Development Division Information System (CDDIS) Parent Portal, or complete a paper application and submit to your local community child care support agency. Call 1-800-649-2642 for assistance.

Vermont Child Tax Credit

The Vermont Child Tax Credit is a refundable state tax credit administered by the Vermont Department of Taxes that provides direct financial support to Vermont families with young children.

  • Amount / Copay: Up to $1,000 per eligible child. The credit is fully refundable, meaning families can receive it even if they owe no taxes. The credit phases out at $175,000 of Adjusted Gross Income (AGI).
  • Eligibility:
    • Be a full-year or part-year Vermont resident
    • Have children age 6 or younger (expanded from age 5 as of 2026 tax year)
    • File a Vermont income tax return
    • No Social Security number or ITIN required for qualifying children
  • How to Apply: Claim the credit on your Vermont income tax return (Form IN-111) when filing your 2026 taxes. File by April 15, 2027. For free tax preparation assistance, call 2-1-1 or visit your local community action agency.

Vermont Child and Dependent Care Credit

The Vermont Child and Dependent Care Credit is a refundable state tax credit administered by the Vermont Department of Taxes that provides tax relief for families paying dependent care expenses.

  • Amount / Copay: Up to 72% of the federal Child and Dependent Care Tax Credit. The credit is fully refundable, allowing families to claim it even if they pay little or no taxes.
  • Eligibility:
    • Be a full-year or part-year Vermont resident
    • Earn income and pay dependent care expenses for children under age 13 or disabled dependents
    • Meet federal income requirements for the dependent care credit
    • Have qualifying child care expenses
  • How to Apply: Claim the credit on your Vermont income tax return (Schedule IN-112) when filing your 2026 taxes. File by April 15, 2027. Consult with a tax preparer or visit Vermont’s tax website for more information.

Reach Ahead Program

Reach Ahead is a transitional support program administered by the Vermont Department for Children and Families that helps families transition from Reach Up or Post-Secondary Education (PSE) benefits to employment while maintaining child care support.

  • Amount / Copay: Provides the maximum child care subsidy available through CCFAP, plus up to $50 per month in food assistance for the first 12 months, then $5 per month for an additional 12 months. Support is available for up to 24 months.
  • Eligibility:
    • Live in Vermont and include a minor child in the household
    • Have a Reach Up or Post-Secondary Education (PSE) benefit that closed within the last 6 months
    • Include at least one adult who meets the family’s federal work requirement through paid employment
    • Not have exceeded the 24-month lifetime limit for Reach Ahead
  • How to Apply: Eligible families are automatically enrolled in Reach Ahead when their Reach Up or PSE benefit closes. Contact your case manager or call 1-800-479-6151 for more information or to verify eligibility.

Factors Contributing to the Cost of Child Care in Vermont

The cost of Child Care in Vermont can vary based on factors such as the type of care, the child’s age, the location within the state, and the specific services provided. Here are some additional costs you may need to consider when budgeting for Child Care in Vermont:

  • Enrollment/Application Fees: Some Child Care centers or programs may charge a one-time enrollment fee or application fee when you enroll your child. These fees are typically non-refundable.
  • Supplies and Materials: Depending on the Child Care provider, you may be responsible for providing certain supplies or materials for your child, such as diapers, wipes, formula, extra clothing, or bedding.
  • Transportation: If you need transportation services to drop off and pick up your child from the Child Care provider, you should factor in the cost of transportation, including gas, parking fees, or public transportation fares.
  • Meals and Snacks: Find out if the Child Care facility provides meals and snacks for your child or if you need to provide them. If meals and snacks are not included, you’ll need to consider the cost of providing nutritious food for your child while they are in care.
  • Field Trips and Special Activities: Some Child Care centers may organize field trips or special activities that require additional fees. These could include outings to parks, museums, or other educational and recreational venues. Make sure to inquire about these costs if they are not included in the regular tuition.
  • Late Pickup Fees: Child Care centers often have specific operating hours, and you may be charged a late pickup fee if you are late to pick up your child. Awareness of the provider’s policies and any associated fees is essential.
  • Miscellaneous Expenses: Depending on the Child Care arrangement, there may be additional costs for items such as extra hours or days of care, tutoring services, specialized programs, or extracurricular activities offered by the Child Care provider.

Discussing and clarifying all potential costs with the Child Care provider you are considering is crucial, as policies and fees can vary.

How to Save on Child Care in Vermont

Aside from grants and subsidies, there are a few strategies you can use to save on Child Care costs in Vermont:

  • Research and Compare: Don’t settle for the first Child Care provider you come across. Do your research, compare rates and services, and look for any discounts or promotions that may be available.
  • Get Creative with Scheduling: To reduce the number of hours your child spends in childcare, consider alternative scheduling options, such as part-time care or a nanny share with another family.
  • Utilize Tax Benefits: You may be eligible for tax credits or deductions related to Child Care expenses. Consult with a tax professional or utilize online resources to see which benefits you may qualify for.
  • Explore Community Resources: Some communities offer low-cost or free Child Care options through local government or non-profit organizations. It’s worth investigating whether such resources are available in your area.
  • Negotiate with Providers: If you have a good relationship with your Child Care provider, don’t hesitate to negotiate fees or payment plans that work better for your budget. However, be sure to do so respectfully and within reason.
  • Plan Ahead: Plan ahead for future Child Care needs, giving yourself time to research options and save up for potential costs. This can also help you avoid making last-minute decisions out of desperation or lack of time.

By being proactive and exploring different strategies, it is possible to make Child Care more affordable and manageable in Vermont. With careful planning, research, and utilization of available resources, you can ensure your children receive quality care without breaking the bank.

Cost of Child Care in Vermont vs. Other States

How Vermont Child Care Costs Compare to the top 10 States in the United States in 2026:

(These are annual prices for a 4-year-old).

Find Quality Child Care in Vermont Today

Let’s recap some of the key takeaways:

  • Vermont’s Child Care ranks among the nation’s highest, with infant care often costing over half of a minimum-wage earner’s income. Center-based care can reach nearly $19,000 annually, surpassing the federal 7% affordability benchmark.
  • City-specific rates can soar above $2,900 a month, and that doesn’t even include extra fees like enrollment, supplies, and late pickups. Rural-urban cost gaps, along with provider subsidies and hourly rate variations, lead to wide-ranging totals across Vermont.
  • Families can reduce these burdens through programs like CCFAP, which directly covers a portion of tuition, and tax credits such as the Vermont Child Tax Credit. Despite these efforts, Vermont still ranks ninth among the priciest states for Child Care, trailing Washington, D.C., Massachusetts, and several other states.

The unfortunate reality is that the Child Care crisis is all too real for many parents, and in order to find the best child care option for your child, you need to know what to look for. Knowing average cost figures, especially for programs in your city, can help you plan and budget so your child can have the best possible Child Care.

Frequently Asked Questions

What’s the difference between center-based and family-based care?

Center-based care is provided in a licensed facility, such as a daycare center or preschool. On the other hand, family-based care is typically provided by an individual caregiver in their home.

Is center-based care better than family-based care?

Center-based is generally more expensive than family-based providers, but that doesn’t always mean better for your child.  Family-based care may provide a more personalized and intimate environment for your child, while center-based care can offer a wider range of resources and activities.

Why are Child Care costs so high?

Several factors contribute to the high cost of Child Care. These include:

  • Staff wages and benefits: Child Care providers need to be adequately compensated for their time and work. However, many providers earn low wages and do not receive benefits like health insurance or paid time off.
  • Operating expenses: Running a Child Care facility requires rent, utilities, supplies, and other operating costs that can add up quickly.
  • Low adult-to-child ratios: To ensure the safety and well-being of children, there are often regulations in place that limit the number of children per adult. This means Child Care providers may need to hire additional staff, increasing costs.
  • Quality standards: High-quality Child Care programs require trained and qualified staff, which can also add to the overall cost.

Additionally, some states have quality rating systems that providers may need to meet to receive funding or subsidies.

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 Vermont Employers

  • Child-care cost: $2,572.70; infant care: $2,943.20.
  • Median monthly income: about $5,925.75 (Census QuickFacts).
  • Average 1-bedroom rent: $1,850/month (Zumper).
  • Comparison: Child care is roughly 39% more expensive than rent. It consumes ~43.4% of monthly income; infant care takes ~49.7%.

South Burlington Child Care

  • Child-care cost: $2,749.50; infant care: $2,990.00.
  • Median monthly income: about $8,888.92 (Census QuickFacts).
  • Average 1-bedroom rent: $1,850/month (Zumper).
  • Comparison: Child care is roughly 49% more expensive than rent. It consumes ~30.9% of monthly income; infant care takes ~33.6%.

Rutland Child Care

  • Child-care cost: $2,600.00.
  • Median monthly income: about $4,806.25 (Census QuickFacts).
  • Average 1-bedroom rent: $1,295/month (Zumper).
  • Comparison: Child care is roughly 101% more expensive than rent. It consumes ~54.1% of monthly income.

Barre Child Care

  • Child-care cost: $2,645.50.
  • Median monthly income: about $5,468.75 (Census QuickFacts).
  • Average 1-bedroom rent: $1,200/month (Zumper).
  • Comparison: Child care is roughly 120% more expensive than rent. It consumes ~48.4% of monthly income.

Montpelier Child Care

  • Child-care cost: $2,906.00.
  • Median monthly income: about $6,752.50 (Census QuickFacts).
  • Average 1-bedroom rent: $1,400/month (Zumper).
  • Comparison: Child care is roughly 108% more expensive than rent. It consumes ~43.0% of monthly income.

Child Care Grants & Subsidies in Vermont

Here are four subsidies, grants, and financial assistance programs available to Vermont families for affordable Child Care:

Child Care Financial Assistance Program (CCFAP)

The CCFAP is Vermont’s primary child care subsidy program administered by the Department for Children and Families (DCF) Child Development Division. It helps eligible families pay for regulated child care, preschool, and afterschool services.

  • Amount / Copay: Family shares (copays) range from $0 to $425 per week based on family size and income. The state pays providers the remaining authorized costs. As of October 2024, income guidelines increased to 575% of the Federal Poverty Level.
  • Eligibility:
    • Have an accepted service need (reason) for child care, such as employment, education, or training at an accredited institution
    • Use regulated child care services
    • Meet income guidelines (up to 575% of Federal Poverty Level as of October 2024)
    • Live in Vermont and have less than $1 million in assets
  • How to Apply: Submit an online application through the Child Development Division Information System (CDDIS) Parent Portal, or complete a paper application and submit to your local community child care support agency. Call 1-800-649-2642 for assistance.

Vermont Child Tax Credit

The Vermont Child Tax Credit is a refundable state tax credit administered by the Vermont Department of Taxes that provides direct financial support to Vermont families with young children.

  • Amount / Copay: Up to $1,000 per eligible child. The credit is fully refundable, meaning families can receive it even if they owe no taxes. The credit phases out at $175,000 of Adjusted Gross Income (AGI).
  • Eligibility:
    • Be a full-year or part-year Vermont resident
    • Have children age 6 or younger (expanded from age 5 as of 2026 tax year)
    • File a Vermont income tax return
    • No Social Security number or ITIN required for qualifying children
  • How to Apply: Claim the credit on your Vermont income tax return (Form IN-111) when filing your 2026 taxes. File by April 15, 2027. For free tax preparation assistance, call 2-1-1 or visit your local community action agency.

Vermont Child and Dependent Care Credit

The Vermont Child and Dependent Care Credit is a refundable state tax credit administered by the Vermont Department of Taxes that provides tax relief for families paying dependent care expenses.

  • Amount / Copay: Up to 72% of the federal Child and Dependent Care Tax Credit. The credit is fully refundable, allowing families to claim it even if they pay little or no taxes.
  • Eligibility:
    • Be a full-year or part-year Vermont resident
    • Earn income and pay dependent care expenses for children under age 13 or disabled dependents
    • Meet federal income requirements for the dependent care credit
    • Have qualifying child care expenses
  • How to Apply: Claim the credit on your Vermont income tax return (Schedule IN-112) when filing your 2026 taxes. File by April 15, 2027. Consult with a tax preparer or visit Vermont’s tax website for more information.

Reach Ahead Program

Reach Ahead is a transitional support program administered by the Vermont Department for Children and Families that helps families transition from Reach Up or Post-Secondary Education (PSE) benefits to employment while maintaining child care support.

  • Amount / Copay: Provides the maximum child care subsidy available through CCFAP, plus up to $50 per month in food assistance for the first 12 months, then $5 per month for an additional 12 months. Support is available for up to 24 months.
  • Eligibility:
    • Live in Vermont and include a minor child in the household
    • Have a Reach Up or Post-Secondary Education (PSE) benefit that closed within the last 6 months
    • Include at least one adult who meets the family’s federal work requirement through paid employment
    • Not have exceeded the 24-month lifetime limit for Reach Ahead
  • How to Apply: Eligible families are automatically enrolled in Reach Ahead when their Reach Up or PSE benefit closes. Contact your case manager or call 1-800-479-6151 for more information or to verify eligibility.

Factors Contributing to the Cost of Child Care in Vermont

The cost of Child Care in Vermont can vary based on factors such as the type of care, the child’s age, the location within the state, and the specific services provided. Here are some additional costs you may need to consider when budgeting for Child Care in Vermont:

  • Enrollment/Application Fees: Some Child Care centers or programs may charge a one-time enrollment fee or application fee when you enroll your child. These fees are typically non-refundable.
  • Supplies and Materials: Depending on the Child Care provider, you may be responsible for providing certain supplies or materials for your child, such as diapers, wipes, formula, extra clothing, or bedding.
  • Transportation: If you need transportation services to drop off and pick up your child from the Child Care provider, you should factor in the cost of transportation, including gas, parking fees, or public transportation fares.
  • Meals and Snacks: Find out if the Child Care facility provides meals and snacks for your child or if you need to provide them. If meals and snacks are not included, you’ll need to consider the cost of providing nutritious food for your child while they are in care.
  • Field Trips and Special Activities: Some Child Care centers may organize field trips or special activities that require additional fees. These could include outings to parks, museums, or other educational and recreational venues. Make sure to inquire about these costs if they are not included in the regular tuition.
  • Late Pickup Fees: Child Care centers often have specific operating hours, and you may be charged a late pickup fee if you are late to pick up your child. Awareness of the provider’s policies and any associated fees is essential.
  • Miscellaneous Expenses: Depending on the Child Care arrangement, there may be additional costs for items such as extra hours or days of care, tutoring services, specialized programs, or extracurricular activities offered by the Child Care provider.

Discussing and clarifying all potential costs with the Child Care provider you are considering is crucial, as policies and fees can vary.

How to Save on Child Care in Vermont

Aside from grants and subsidies, there are a few strategies you can use to save on Child Care costs in Vermont:

  • Research and Compare: Don’t settle for the first Child Care provider you come across. Do your research, compare rates and services, and look for any discounts or promotions that may be available.
  • Get Creative with Scheduling: To reduce the number of hours your child spends in childcare, consider alternative scheduling options, such as part-time care or a nanny share with another family.
  • Utilize Tax Benefits: You may be eligible for tax credits or deductions related to Child Care expenses. Consult with a tax professional or utilize online resources to see which benefits you may qualify for.
  • Explore Community Resources: Some communities offer low-cost or free Child Care options through local government or non-profit organizations. It’s worth investigating whether such resources are available in your area.
  • Negotiate with Providers: If you have a good relationship with your Child Care provider, don’t hesitate to negotiate fees or payment plans that work better for your budget. However, be sure to do so respectfully and within reason.
  • Plan Ahead: Plan ahead for future Child Care needs, giving yourself time to research options and save up for potential costs. This can also help you avoid making last-minute decisions out of desperation or lack of time.

By being proactive and exploring different strategies, it is possible to make Child Care more affordable and manageable in Vermont. With careful planning, research, and utilization of available resources, you can ensure your children receive quality care without breaking the bank.

Cost of Child Care in Vermont vs. Other States

How Vermont Child Care Costs Compare to the top 10 States in the United States in 2026:

(These are annual prices for a 4-year-old).

Find Quality Child Care in Vermont Today

Let’s recap some of the key takeaways:

  • Vermont’s Child Care ranks among the nation’s highest, with infant care often costing over half of a minimum-wage earner’s income. Center-based care can reach nearly $19,000 annually, surpassing the federal 7% affordability benchmark.
  • City-specific rates can soar above $2,900 a month, and that doesn’t even include extra fees like enrollment, supplies, and late pickups. Rural-urban cost gaps, along with provider subsidies and hourly rate variations, lead to wide-ranging totals across Vermont.
  • Families can reduce these burdens through programs like CCFAP, which directly covers a portion of tuition, and tax credits such as the Vermont Child Tax Credit. Despite these efforts, Vermont still ranks ninth among the priciest states for Child Care, trailing Washington, D.C., Massachusetts, and several other states.

The unfortunate reality is that the Child Care crisis is all too real for many parents, and in order to find the best child care option for your child, you need to know what to look for. Knowing average cost figures, especially for programs in your city, can help you plan and budget so your child can have the best possible Child Care.

Frequently Asked Questions

What’s the difference between center-based and family-based care?

Center-based care is provided in a licensed facility, such as a daycare center or preschool. On the other hand, family-based care is typically provided by an individual caregiver in their home.

Is center-based care better than family-based care?

Center-based is generally more expensive than family-based providers, but that doesn’t always mean better for your child.  Family-based care may provide a more personalized and intimate environment for your child, while center-based care can offer a wider range of resources and activities.

Why are Child Care costs so high?

Several factors contribute to the high cost of Child Care. These include:

  • Staff wages and benefits: Child Care providers need to be adequately compensated for their time and work. However, many providers earn low wages and do not receive benefits like health insurance or paid time off.
  • Operating expenses: Running a Child Care facility requires rent, utilities, supplies, and other operating costs that can add up quickly.
  • Low adult-to-child ratios: To ensure the safety and well-being of children, there are often regulations in place that limit the number of children per adult. This means Child Care providers may need to hire additional staff, increasing costs.
  • Quality standards: High-quality Child Care programs require trained and qualified staff, which can also add to the overall cost.

Additionally, some states have quality rating systems that providers may need to meet to receive funding or subsidies.

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 Vermont Employers

 

 

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