What this calculator does
This calculator estimates the yearly cost of childcare in Boston by type of care and number of children, then shows how much a dependent care FSA can save. Massachusetts has some of the highest childcare costs in the US. The Department of Early Education and Care (EEC) runs financial assistance for eligible families, and Boston's universal pre-K serves many four-year-olds.
How to use it
- Choose center-based care by age, a family child care home or a nanny.
- Enter the number of children and the schedule.
- Enter household income and filing status for the tax saving.
- Tick the FSA box if your employer offers one.
The formula
Center or family care = Boston starting price × (days ÷ 5) × (weeks ÷ 50), with a 10% sibling discount for each additional child. Nanny = hourly rate × hours × weeks × 1.0765 (employer payroll taxes). FSA saving = the lower of $7,500 or the cost × your combined marginal tax rate.
Starting estimates used for Boston: infant center $30,000, toddler $26,500, preschool $22,000, family child care $16,000 per year, nanny $27 an hour. These are Rate and Reason estimates, not official figures.
Worked example for Boston
| Item | Amount |
|---|---|
| Care type | infant |
| Children | 1 |
| Starting price per child (Boston estimate) | $30,000 |
| Yearly cost | $30,000 |
| Dependent care FSA (up to $7,500) x your marginal rate 36.6% | -$2,749 |
| Net yearly cost | $27,251 |
What affects childcare costs in Boston
Staff-to-child ratios set by the state are the main reason infant care costs more than preschool. Boston's rent, childcare and utility costs are high; winter heating is a real line item. Many residents rely on transit rather than a car.
Common mistakes and tips
- Joining waitlists late — many centers have long waits for infant rooms.
- Missing the FSA enrollment window, which is usually open enrollment or a qualifying life event.
- Forgetting nanny payroll obligations, including Schedule H and state unemployment tax.
- Not checking free public pre-K or subsidy eligibility, which can remove a large cost.
Frequently asked questions
How much does daycare cost in Boston?
This estimate for full-time infant care is $30,000 a year. Prices vary widely by neighborhood and provider.
What is the dependent care FSA limit for 2026?
$7,500 per household, up from $5,000, under the 2025 federal tax law.
Can I use the FSA and the child care tax credit together?
Not on the same dollars. Expenses paid with FSA money cannot also be claimed for the credit.
Is there free pre-K in Boston?
Yes, for many families. Boston Universal Pre-K offers free seats for four-year-olds, and some three-year-olds, in Boston Public Schools and community programs. Infant and toddler care is not free; Massachusetts EEC financial assistance helps eligible families with those costs.
Sources
Disclaimer
This calculator provides estimates for educational purposes only and is not financial, tax, legal, real estate, or insurance advice. Consult a licensed professional before making decisions.