Tennessee families need $183K income to afford daycare, study finds

Tennessee is one of the most expensive Southern states for child care, according to a new study.

A new analysis from ConsumerAffairs found that Tennessee is among the most expensive states in the South for daycare. The study compares daycare costs with median household income to determine how much families need to earn to afford child care.

Nationally, families need to earn about $205,000 to afford toddler care, more than twice the median household income of about $100,000. In 37 states, annual toddler care costs are higher than a year's tuition and fees at an in-state public college.

New Mexico was the only state not included in the study because it offers universal free childcare to residents.

Here's how much a household is recommended to earn

to afford daycare.

What income is needed to afford daycare in Tennessee?

Nationally, Tennessee ranks in the middle, as the 29th most expensive state for child care.

In Tennessee, a family needs a household income of $182,857 to afford the average annual cost of full-time, center-based toddler care, which is $12,800. Child care costs can consume as much as 14.7% of the state's median family income of $87,314.

How does Tennessee compare to other Southern states?

Unfortunately for Tennessee parents, the state ranks among the most expensive in the South for child care. Only three Southern states were more expensive: North Carolina, Virginia and Maryland.

Here is the income needed to afford daycare among the Southern states:

1. Mississippi: $92,743
2. West Virginia: $121,986
3. Alabama: $123,514
4. Arkansas: $127,614
5. Louisiana: $146,557
6. Oklahoma: $147,057
7. South Carolina: $147,846
8. Texas: $149,343
9. Georgia: $150,529
10. Florida: $175,314
11. Kentucky: $179,157
12. Tennessee: $182,857
13. North Carolina: $185,143
14. Virginia: $234,000
15. Maryland: $278,571

Most expensive states for daycare

Massachusetts was the most expensive state for daycare, where residents need an income of $349,543. Daycare for a full-time toddler costs $24,468 annually and takes up 18.6% of the median household income of $131,675.

Here is the income needed to afford daycare among the most expensive states:

1. Massachusetts: $349,543
2. Vermont: $294,586
3. Oregon: $293,814
4. Washington: $293,486
5. Hawaii: $283,314
6. Maryland: $278,571
7. New York: $273,600
8. Rhode Island: $271,029
9. Illinois: $268,157
10. Wisconsin: $263,471

Least expensive states for daycare

Mississippi was the least expensive state in the country for daycare. In Mississippi, daycare costs $6,492 annually and only takes up 8.9% of the median household income of $74,163.

Here is the income needed to afford daycare among the least expensive states:

1. Mississippi: $92,743
2. West Virginia: $121,986
3. Alabama: $123,514
4. South Dakota: $126,557
5. Arkansas: $127,614
6. Idaho: $146,557
7. Louisiana: $146,557
8. Oklahoma: $147,057
9. South Carolina: $147,846
10. Texas: $149,343

Methodology

The ConsumerAffairs Research Team analyzed average annual full-time, center-based toddler childcare costs in each state using 2025 data from Child Care Aware of America.

To evaluate affordability, the team calculated the household income needed to keep average toddler childcare costs at or below the 7% benchmark previously set by the U.S. Department of Health and Human Services by dividing each state's average annual toddler care cost by 7%.

Childcare costs were then compared with:

• Median family income (U.S. Census Bureau, 2024)
• Median rent (U.S. Census Bureau, 2024)
• Median monthly mortgage costs (U.S. Census Bureau, 2024)
• Average annual in-state tuition and fees at public four-year colleges (Education Data Initiative, 2025)

Jordan Green covers trending news for The Commercial Appeal and Tennessee. She can be reached at [e-mail].

This article originally appeared on Memphis Commercial Appeal: Tennessee families need $183K income to afford daycare, study finds