Nanny vs daycare: cost and how to choose in 2026

Is a nanny cheaper than daycare for two kids?

It can be. Daycare charges per child, so two kids roughly double the bill, while a nanny's rate usually rises by less than that.

At the 2026 survey averages, one infant plus one toddler in daycare costs about $640 a week, or $33,280 a year ^[1]. A nanny for one child averaged $870 a week ^[1]. Nanny rates often rise with more children, and Care.com doesn't publish a two-child nanny average, so get local quotes. Even so, the gap between two in daycare and one nanny is far smaller than for a single child.

A nanny also tends to make more sense when:

• You have a baby and a toddler at once. Infant care is the most expensive daycare slot, and you'd pay it alongside toddler tuition.
• Your hours don't fit a center. Early shifts, late shifts, travel and on-call work are hard to match with a center's opening hours.
• Pickups are a squeeze. Two drop-offs, or a preschooler and a baby at different places, take real time each day.

How does nanny share math work?

In a nanny share, two families hire one nanny together. Care.com's rule of thumb is that each family pays about two-thirds of the nanny's usual rate, so the nanny earns more in total and each family pays less ^[4]. A nanny consultant quoted by Care.com said families typically split the fee at 25% to 35% less than the solo rate, and that some nannies now ask for up to 75% of their usual rate from each family ^[4].

At the 2026 survey rate of $870 a week ^[1], two-thirds is $580 a week per family, or $30,160 a year. The nanny earns $1,160 a week in total, about a third more than with one family. That's our math, and the split you land on is between you, the other family and the nanny.

Each family is its own employer. The IRS treats each family in a share as a separate household employer, even if care happens in only one home ^[16]. Each family gets its own federal and state tax ID numbers and withholds taxes on its own share of the wages ^[16]. At $580 a week, your share passes the $3,000 Social Security and Medicare threshold in about six weeks ^[5]. Our nanny cost guide covers how share families set up payroll and tax ID numbers.

Settle these in writing before you start:

• Whose home the care happens in, or how you'll alternate.
• How you'll split supplies, food, gas and any outings.
• What happens when one child is sick. Does the nanny stay with the healthy child, the sick one, or both?
• Paid time off, holidays and what happens on days one family doesn't need care.
• How much notice either family gives before leaving, and what the other family pays in the meantime.

A share works well for babies close in age with families who live near each other. It's still more expensive than daycare for one child at national averages, but in high-cost areas, where infant care at a center can cost more than rent ^[2], a share can come closer.

Which is safer: daycare or a nanny?

Neither is safer by default. They're overseen differently. Licensed daycares follow state rules for staffing, training, background checks and inspections. A nanny you hire directly isn't licensed, so the screening and oversight fall to you.

Ratios and group sizes

Caring for Our Children, the national health and safety standards from the AAP and its partners, recommends these maximums for centers ^[8]:

Those are recommendations. The actual ratio depends on your state. For licensed centers that take federal childcare funds, state infant ratios run from 1:3 in Kansas, Maryland and Massachusetts to 1:6 in Georgia, Idaho and New Mexico, according to the 2025 to 2027 state plans ^[9]. Ask any center what ratio it keeps in the infant room, including at nap time and at the start and end of the day.

A nanny cares for your children alone, or for two or three kids in a share. For an infant, that's the most individual attention you can buy.

Background checks and inspections

States that take federal childcare funds must run criminal background checks on child care staff in licensed, regulated or registered programs. The checks include an FBI fingerprint check, the national and state sex offender registries, and state child abuse and neglect registries ^[10]. States must also inspect licensed providers before licensing and at least once a year, unannounced ^[11].

With a nanny, none of that happens unless you do it. Families commonly check references, run a background check with the nanny's written consent, confirm CPR and first aid training, and set clear rules for safe sleep, car seats and screen time. In the INA's 2022 survey, 89% of nanny respondents had CPR certification and 83% had first aid ^[6].

You can check a center's or home daycare's license and inspection reports through your state's childcare licensing agency.

What happens when your child or the caregiver is sick?

Daycares send sick children home under illness rules, so you'll still need backup care. A nanny can usually care for a mildly sick child at home, but when the nanny is sick, you have no one.

The AAP's guidance, which many programs follow, says to keep a child home from child care for reasons including ^[12]:

• A fever above 101°F (38.3°C) along with a change in behavior.
• A cough, runny nose or sore throat with a fever, until the fever has been gone at least 24 hours without fever-reducing medicine.
• Vomiting two or more times in the previous 24 hours.
• Diarrhea with stool leaking out of the diaper, or more than two stools above normal in 24 hours.

The AAP also says a cold or cough without fever doesn't necessarily mean a child needs to stay home, as long as the child feels well enough for the day and staff can care for them ^[12]. Each program sets its own policy, so ask for it in writing. Talk to your child's doctor about any illness, and follow their advice on when your child can go back.

With a nanny, decide in advance:

• Whether the nanny will care for your child when they're mildly sick, and whether they'll come to work if your child has something contagious.
• What happens on the nanny's own sick days. Many families keep a list of backup sitters or use a backup care benefit through work.
• How paid sick days work. In the INA's 2022 survey, 80% of nannies got paid sick or personal days ^[6].

Can you use an FSA or tax credit for a nanny or daycare?

Yes, for both. Daycare tuition and nanny wages both count as work-related childcare costs, and with a nanny, the employer taxes you pay count too ^[15].

• Dependent care FSA. For 2026, you can set aside up to $7,500 per tax return, or $3,750 if you're married and file separately ^[14]. Your employer's plan may set a lower cap.
• Child and dependent care credit. Starting with tax year 2026, the top credit rate rises from 35% to 50%, and the expense limits stay at $3,000 for one child and $6,000 for two or more ^[13]. The rate you get depends on your income.
• You can't use both on the same dollars. Money you run through an FSA reduces the expenses the credit can count. Our dependent care FSA guide shows which saves more at different incomes, and the FSA calculator runs your numbers.

Two details matter more with a nanny. First, the IRS counts the Social Security, Medicare and unemployment taxes you pay on a caregiver's wages as childcare expenses ^[15]. Second, agency fees you pay to find a nanny count, but a deposit you forfeit doesn't ^[15].

Either way, you'll need your provider's name, address and taxpayer ID number to claim the FSA or credit ^[15]. Ask a daycare for it at enrollment, and get your nanny's Social Security number on their W-4 or I-9 paperwork.

Can I get help paying for daycare or a nanny?

Public help mostly pays for licensed care, which tilts the math toward daycare for families who qualify.

• Childcare subsidies. State childcare assistance programs pay part of the cost of care for eligible families. Ask any provider you're considering whether it accepts subsidies. See income limits and how to apply in child care assistance by state.
• Head Start and Early Head Start. Early Head Start serves babies and toddlers from families with low incomes. Search our Head Start and Early Head Start finder.
• Paid family leave. Leave can push back the date you need care at all. See paid family leave by state.

If you're weighing live-in care, compare what an au pair costs.

To compare licensed daycares near you, see daycare by state and city.

How to choose between a nanny, daycare and a nanny share

Start with the numbers for your area, then let the trade-offs decide. A few questions narrow it down fast.

Lean toward daycare if:

• You have one child and a regular weekday schedule.
• You want licensing, inspections and staff backup built in.
• You'd rather not be an employer, with payroll and tax forms.
• You can get a spot. Infant waitlists can be long, so get on lists during pregnancy.

Lean toward a nanny if:

• You have two or more kids under school age.
• Your hours are long, early, late or unpredictable.
• You want care at home, with no drop-offs.
• Your budget can absorb wages, employer taxes and paid time off.

Lean toward a nanny share if:

• You know a family nearby with a child close in age.
• You want home-based care for less than a solo nanny.
• Both families are comfortable writing down the rules on hosting, sick days and notice.

Questions to ask either way

• What's the full yearly cost, including fees, holidays, closures, overtime and taxes?
• Who covers when the caregiver is sick, on vacation or quits?
• What's the illness policy for my child, in writing?
• What are the ratio and group size for my child's age? (daycare)
• What background check, references and training will I verify? (nanny)
• Will I get a taxpayer ID number and year-end receipts for my FSA or tax credit?

Prices vary a lot by city and state, so treat the national averages here as a starting point. Call two or three centers and talk to a few nannies near you before you commit.