Child Care Affordability in Connecticut

May 2025

This analysis uses public data to explore the percentage of families in Connecticut that could spend no more than 7% of their household income to pay the market rate to enroll all of their young children in full-time, year-round care in a child care center. We use the benchmark of 7% of household income established by the U.S. Department of Health and Human Services as a reasonable amount that a family can be expected to pay for child care. Our analysis used data from the Connecticut Office of Early Childhood’s Child Care Market Rate Report and the U.S. Census Bureau’s American Community Survey Public Use Microdata Sample. We find that 87% of families in Connecticut would need to spend more than 7% of their household income to pay the market rate for full-time, year-round care in a child care center for all of their young children.

We also explored differences in affordability by race and ethnicity, family income level, parent employment status, the number and ages of children in the family, and region of residence within Connecticut. Although there are differences, market-rate child care would cost more than 7% of household income for most families in nearly every group we analyzed.

See below for details on our data sources and methodology.

These findings reveal the extent to which market-rate child care would be an excessive cost burden for many of Connecticut’s families. Indeed, one in four respondents to the Connecticut RAPID Survey reported that their current child care situation was not affordable for their family. This does not include the many respondents who were not using child care due to its prohibitive cost.

Market-rate child care would cost more than 7% of household income for 9 out of 10 of Connecticut families with young children

Eighty-seven percent (87%) of Connecticut’s families would need to spend more than seven percent (7%) of their income to pay average market rates in their region for full-time, center-based child care for all of their young children. The median percentage of income families would need to pay for market-rate child care is sixteen percent (16%). 

Statewide average weekly market rates in 2023 were: 

• $328 for infants and toddlers, and

• $231 for preschool-aged children.

Affordability By Race and Ethnicity

The percentage of families for whom market-rate child care would cost more than 7% of household income varies between race and ethnicity groups. Market-rate child care would cost more than 7% of household income for 97% of Black families and Hispanic or Latino families, compared to 81% of White non-Hispanic families and 78% of Asian families.

The median percentage of household income that a family would need to spend to afford market-rate child care for all of their young children ranges from 13% for White families to 30% for Hispanic or Latino families. 

Please note that the race and ethnicity of the household is determined by the race and ethnicity of the householder only. This is generally the person who owns the home or whose name is on the lease for a rental property.

Affordability by Income

Our analysis shows that market-rate child care would cost more than 7% of household income for all families making below the State Median Income (SMI) for their household size. 

Market-rate, center-based child care would cost more than 7% of household income for: 

• ninety-five percent (95%) of families making 100 to 149% of the SMI, 

• seventy-three percent (73%) of families making 150 to 199% of the SMI, and  

• about a third (33%) of families with a household income of at least 200% of the SMI.  

For most families making below 30% of the SMI, market-rate center-based child care would cost more than families earned each year: the median percent of household income needed to afford it was 104%. Even among families earning 100 to 150% of the SMI, about half of these families would need to spend at least 13% of their household income to afford market-rate, center-based care for all their young children.

Affordability by Parent Employment Status

Affordability by Age and Number of Children

The amount of money a family would need to spend on market-rate child care is dependent on the number and age of children in the household. Child care for infants and toddlers tends to be more expensive than child care for pre-school aged children. 

Eighty percent (80%) of families with one preschool-aged child and 88% of families with one infant or toddler would need to spend more than 7% of their income to afford market-rate care.

The cost of market-rate child care exceeds 7% of household income for all families with three or more children including one infant or toddler. 

The median percentage of income needed to pay for market-rate child care among families with one or two young children ranges from 11% for families with one preschool-aged child to 25% for families with two infants or toddlers. Among families with two preschool-aged children and one infant or toddler, about half would need to pay more than 47% of their household income to enroll all of their children in market-rate, center-based care.

Affordability by Region

The 2024 Connecticut Child Care Market Rate Report reports average market rates for child care in five regions. A list of towns in each region is available here. Average market rates for full-time, center-based child care in each region can be found in the table to the right.

Affordability by Planning Region

Across all planning regions, we find that 76 to 95% of families would need to pay more than 7% of their household income to obtain market-rate care for all their young children. The highest rates are in: 

• Northeastern Connecticut (95% of families), and  

• Naugatuck Valley and Greater Bridgeport (92% of families).  

The lowest rates are in Northwest Hills and Western Connecticut, where 76 to 77% of families would need to spend more than 7% of their income to pay for market-rate child care. 

The planning regions with the highest median percentage of household income needed to pay for market-rate child care are: 

• Naugatuck Valley (22% of income),  

• Northeastern Connecticut (21% of income), and  

• Greater Bridgeport (20% of income).  

This means that at least half of the families living in these planning regions would need to pay at least one-fifth of their household income to enroll all their children in full-time, market-rate care. 

Affordability by PUMA

In 21 of Connecticut’s 25 PUMAs, we estimate that market-rate child care would cost more than 7% of household income for at least eighty percent (80%) of the families living there. In 11 PUMAs, this is true for at least ninety percent (90%) of families. 

In Bridgeport and Waterbury, we find that all families would need to spend more than 7% of their household income to obtain market-rate child care for all of their young children.  

The highest affordability of child care is in the Western Central PUMA, which includes Darien, New Canaan, Redding, Ridgefield, Weston, and Wilton. We estimate that market-rate child care would cost more than 7% of household income for fifty-four percent (54%) of families living in this region. Given that this region also has the highest child care market rates, this greater affordability is clearly due to higher median household incomes rather than less expensive child care.

The median percent of income needed to pay for market-rate child care ranges from seven percent (7%) in the Western Central PUMA to forty-seven percent (47%) in Waterbury.  

Note that, because we applied regional market rates to PUMAs, the PUMA affordability calculations do not account for potentially significant variations in rates across PUMAs in the same market-rate region. 

Child Care Subsidies

Not all families with young children need to pay market-rate prices for child care. Lower-income families may be eligible for Care 4 Kids child care subsidies and/or free or reduced-tuition programs like Head Start/Early Head Start, state-funded programs, and public school preschools.

Families receiving a Care 4 Kids subsidy pay a percentage of their gross income to the child care provider. The current fee schedule, which is in effect from October 1, 2024 through September 30, 2025, ranges from 0% for families with an income at or below 20% of the State Median Income (SMI) to 7% for families with an income between 60% and 85% of the SMI. Families may also need to pay for all charges not covered by the Care 4 Kids weekly rate, which varies by region and the child’s age.

2023 Care 4 Kids rates are compared to 2023 average market rates in the table to the right. The table also includes the Care 4 Kids’ market percentile. For example, in the Eastern Region, the Care 4 Kids infant and toddler rate is in the 17th percentile, meaning that 17% of child care providers located in the Eastern Region have weekly rates that are lower than the East Region Care 4 Kids rate.

The Care 4 Kids weekly rate was approved to increase by eleven percent (11%) each fiscal year through 2026.

According to the Connecticut Office of Early Childhood, over 22,200 families received Care 4 Kids subsidies in the 2023-2024 state fiscal year. Over 17,100 young children were enrolled in reduced-tuition slots at child care centers funded by state School Readiness or Child Day Care Contract grants. In the 2023-2024 school year, over 19,500 young children were enrolled in public school preschools and over 6,600 young children were enrolled in Head Start or Early Head Start programs.

These programs are essential for making child care accessible to Connecticut’s lower-income families who cannot afford to pay for market-rate care.

Implications

Overall, 87% of families in Connecticut would need to pay more than 7% of their income for full-time, market-rate care in a child care center for all of their young children. Even among families with incomes between 100% and 149% of the State Median Income (SMI), half would need to pay more than 13% of their household income to enroll all of their children in market-rate child care. Among single-parent working families, the median percent of household income needed to afford market-rate care is 25%. Only within the Western Central PUMA, which includes some of Connecticut’s wealthiest towns (Darien, New Canaan, Redding, Ridgefield, Weston, and Wilton), could half of families afford market-rate care for at most 7% of their household income.

As of 2025, the CT Office of Early Childhood has revised the Care 4 Kids guidelines to cap the maximum family fee at or below 7% of a family’s income and to allow families whose incomes increase to 85% SMI to continue receiving subsidies (although the cutoff for new applicants is still set at 60% SMI). These changes should ease the cost burden for some lower-income families. However, most families with incomes above 60% SMI will continue to be ineligible for subsidies despite the high cost burden of child care for many of these families. For example, we estimate that all families with incomes between 85 and 100% of SMI would need to pay more than 7% of their income to afford market-rate care for all their children, with a median of 18% of household income needed. Additionally, not all providers accept Care 4 Kids subsidies, and many families that meet the subsidy income eligibility cutoff still do not access these subsidies. The Connecticut RAPID Survey found that only 34% of income-eligible families accessed Care 4 Kids subsidies.

We estimated the cost of market-rate child care using the Connecticut Office of Early Childhood’s 2024 Connecticut Child Care Market Rate Report, which provides average market rates for child care based on a statewide survey of child care providers conducted in September through December of 2023. The report includes market rates for licensed child care centers and group child care homes (center-based child care) and for family child care homes. Family child care slots tend to be more limited and less expensive than center-based child care. This analysis used weekly market rates for center-based child care only, with the presumption that parents should be able to afford center-based care if that is the type of child care they prefer. Two rates are reported for each of five regions, one for infants and toddlers and one for preschool-aged children. These weekly rates were multiplied by 52 to get an average annual rate.

To calculate the amount that each family would need to pay to enroll all of their young children in full-time care, we used 2023 American Community Survey (ACS) Public Use Microdata Sample (PUMS) 1-year estimates. We first calculated the number of infants and toddlers (ages zero through two) and the number of preschool-aged children (ages three through five) per household. Families were assigned a regional market rate for child care based on the Public Use Microdata Area (PUMA) that they live in. Because PUMAs do not nest within the regions used in the Market Rate Report, we calculated a weighted average market rate based on the number of towns from each region that are in the PUMA. For each household, we then multiplied the regional average annual market rates for each child age range by the number of children in the household in that age range to get the estimated cost of full-time, center-based care for all young children in the household. Finally, we divided this amount by the family’s reported annual household income to estimate the percentage of household income that would be needed to pay for full-time, center-based care for all young children in the household.

Note that this does not account for any child care subsidies, programs offering free or reduced tuition to income-eligible families, sibling discounts, or other tuition reductions that may be available to families. This analysis also did not include part-time or part-year enrollments. Finally, the cost of before- or after-school care for school-aged children was also not considered.

A Note about Regional Data

The PUMS data used in this analysis is available for Public Use Microdata Areas (PUMAs), which are non-overlapping geographic areas with populations of 100,000 or more. PUMA-level data was aggregated to planning regions for this analysis. PUMAs generally nest within planning regions, aside from the town of Stafford. Stafford is in the Capitol Planning Region but is assigned to the Northeastern Planning Region for this analysis because it is part of the Northeastern Planning Region & Stafford Town PUMA. 

PUMAs and planning regions do not nest within the regions used in the 2024 Connecticut Child Care Market Rate report. To determine the average cost of market-rate child care in each PUMA and in each planning region, we calculated a weighted average cost based on the number of towns from each Market Rate region that are in the PUMA or planning region. 

Acknowledgements

This work was funded by The Connecticut Project. The work was conducted by Jill Walsh and Cynthia Willner of CTData Collaborative.