Breaking Down the Average Cost of Child Care In Indiana

Are you experiencing difficulties paying for child care? If so, you’re not alone. Economic pressures like high inflation, a weak job market, and rising child care costs nationwide are straining family budgets.

Parents across the U.S. have seen daycare prices climb nearly 40% over the last ten years. In Indiana, the median household income is about $70,000, yet the average full-time weekly cost of child care is around $180. That works out to roughly $9,300 per year for one child, which is a significant chunk of the typical family’s earnings.

At Brighter Futures, we want to help families find the right child care program for their needs and the resources to help pay for care. In this article, we’ll break down the cost of child care in Indiana and resources you can turn to to make child care more affordable.

What is the Average Cost of Child Care by Each Age Group?

The cost of child care in Indiana varies by age group. For example, infant care requires more hands-on attention and lower child-to-staff ratios, making it costlier than care for older children.

Here are the average full-time weekly child care costs in Indiana by age group compiled from our Brighter Futures Data Center:

• Infant (6 weeks – 12 months): $209.94 per week

• Toddler 1 (12–23 months): $202.14 per week

• Toddler 2 (24–35 months): $196.76 per week

• Preschool (3 years): $179.18 per week

• Pre-K (4–5 years): $175.18 per week

• School-Age Full Day (Kindergarten): $156.90 per week

• School-Age Before and After Care (Kindergarten+): $126.65 per week

What is the Average Cost of Child Care by Each Program?

Child care costs in Indiana also vary widely by the type of program or setting. Generally, center-based child care programs tend to be the most expensive due to the high costs associated with facility maintenance and staff. Home-based child care is often the most affordable. Indiana also has ministry-based programs (often run by faith-based organizations), which usually fall somewhere in the middle.

Here’s a breakdown of how much each of these types of care costs.

Center-based care:

• Infants and Toddlers: $15,713 per year

• Preschool: $12,646 per year

• School-Age: $8,333 per year

Home-based care:

• Infants and Toddlers: $9,333 per year

• Preschool: $8,594 per year

• School-Age: $7,361 per year

Ministry-based care:

• Infants and Toddlers: $12,466 per yea

• Preschool: $10,026 per year

• School-Age: $7,462 per year

What Resources are Available to Help Me Pay for Child Care?

Paying for child care can be difficult, but Indiana offers many resources that can help. For a more detailed look, visit our How to Afford Child Care and Help Paying for Child Care pages. Below is a list of programs available to Indiana families.

• Child Care Tax Credits

• Dependent Care Flexible Spending Accounts (FSAs)

• Indiana CCDF

• On My Way Pre-K

• Head Start and Early Head Start

• TANF (Temporary Assistance for Needy Families)

• SNAP (Supplemental Nutrition Assistance Program)

• WIC (Women, Infants, and Children)

• Hoosier Healthwise

• Low-Income Home Energy Assistance Program (LIHEAP)

• Adjustable Child Care Rates

• Local Organizations

• Military Child Care Assistance

Each of these programs provides different types of support. We encourage families to explore them in full using the internal links mentioned above.

Child Care Tax Credits

When filing your taxes, you may be eligible to claim credits such as the Child Tax Credit, the Child and Dependent Care Tax Credit, and the Earned Income Tax Credit. These credits and others may help you receive a tax refund, which you can use to help pay for child care costs.

Dependent Care Flexible Spending Accounts (FSAs)

Some employers have plans called Flexible Spending Accounts that allow employees to reserve a portion of their wages for child care. Money from each paycheck is taken out pre-tax and placed in a special fund that can only be used for child care costs.

Indiana CCDF

The Child Care and Development Fund (CCDF) is a federal program that helps families get child care so that they may work, attend training, or continue their education. It aims to increase the availability, affordability, and quality of child care.

On My Way Pre-K

On My Way Pre-K awards grants to 4-year-olds from low-income families so that they may have access to a high-quality pre-K program the year before they begin kindergarten. Families who receive a grant may use the grant at any approved On My Way Pre-K program.

Head Start and Early Head Start

Head Start is a federal program that promotes the school readiness of children under five from low-income families. Early Head Start programs serve infants, toddlers and pregnant women and their families who have incomes below the federal poverty level.

TANF (Temporary Assistance for Needy Families)

Temporary Assistance for Needy Families (TANF) provides cash assistance and supportive services to assist families with children under age 18. The goal of TANF is to help families achieve economic self-sufficiency.

SNAP (Supplemental Nutrition Assistance Program)

The Supplemental Nutrition Assistance Program (SNAP) provides food assistance to individuals and families. It enables low- and no-income families to buy nutritious food through electronic benefits transfer (EBT) cards.

WIC (Women, Infants, and Children)

Women, Infants and Children (WIC) improves access to nutritious foods and promotes healthier eating and lifestyles among low- and no-income families with children. WIC provides nutrition and health screening, nutrition education, breastfeeding support, links to other services and supplemental healthy foods to meet special nutrition needs.

Hoosier Healthwise

In Indiana, families and individuals can apply for Hoosier Healthwise, a health insurance service funded by the federal Medicaid and Children’s Health Insurance Program (CHIP) programs. Hoosier Healthwise serves a variety of populations, including some of the most vulnerable, such as children, pregnant women and people with disabilities.

Low-Income Home Energy Assistance Program (LIHEAP)

The Low‑Income Home Energy Assistance Program is a federally funded program through the U.S. Department of Health and Human Services. It helps low-income families with the high cost of home energy.

Adjustable Child Care Rates

Some child care programs offer discounts, such as sibling discounts or military discounts. Other providers may offer scholarships to eligible families or sliding fee scales that allow families to pay a rate based on their income. Check with your child care provider to see if they offer assistance.

Local Organizations

Local community centers often have funding to help families pay for child care. Reach out to the community center in your county or your local trustee's office to see if there is assistance available. For those in Marion County, community centers are organized by postal code.

Military Child Care Assistance

If you’re a member of the United States military, you may be eligible for Department of Defense child care fee assistance. Members of the Army, Air Force, Navy, and Marine Corps may receive help paying for child care providers in the community where they live if they are unable to access care on their installation.

What are the Top Factors Impacting the Cost of Child Care?

Several factors influence the cost of child care in Indiana, including:

• Staff wages and qualifications

• Safety and licensing requirements

• Facility operational costs

• Staff-to-child ratios

• Program type (center, home, ministry)

• Age of the child