What this calculator does
This calculator estimates the yearly cost of childcare in Chicago by type of care and number of children, then shows how much a dependent care FSA can save. Full-time infant care in Chicago is expensive, while Chicago Public Schools offers free full-day pre-K for many four-year-olds. The Illinois Child Care Assistance Program (CCAP) helps eligible working families pay for care.
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 = Chicago 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 Chicago: infant center $24,000, toddler $20,000, preschool $16,000, family child care $12,500 per year, nanny $22 an hour. These are Rate and Reason estimates, not official figures.
Worked example for Chicago
| Item | Amount |
|---|---|
| Care type | infant |
| Children | 1 |
| Starting price per child (Chicago estimate) | $24,000 |
| Yearly cost | $24,000 |
| Dependent care FSA (up to $7,500) x your marginal rate 36.6% | -$2,745 |
| Net yearly cost | $21,255 |
What affects childcare costs in Chicago
Staff-to-child ratios set by the state are the main reason infant care costs more than preschool. Chicago's rents and home prices are moderate for a city its size, but high sales tax and property tax add to the cost of living.
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 Chicago?
This estimate for full-time infant care is $24,000 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 Chicago?
Yes. Chicago Public Schools offers free full-day pre-K for many four-year-olds, and Chicago Early Learning programs also serve many three-year-olds. For infants and toddlers, the Illinois Child Care Assistance Program (CCAP) helps eligible working families.
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.