What this calculator does
This calculator estimates the yearly cost of childcare in Houston by type of care and number of children, then shows how much a dependent care FSA can save. Childcare in Houston costs far less than in coastal cities, but it is still one of the largest family expenses. The Texas Workforce Commission funds child care assistance through Workforce Solutions for eligible families, and Texas offers free public pre-K for qualifying 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 = Houston 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 Houston: infant center $14,000, toddler $12,500, preschool $11,000, family child care $9,000 per year, nanny $19 an hour. These are Rate and Reason estimates, not official figures.
Worked example for Houston
| Item | Amount |
|---|---|
| Care type | infant |
| Children | 1 |
| Starting price per child (Houston estimate) | $14,000 |
| Yearly cost | $14,000 |
| Dependent care FSA (up to $7,500) x your marginal rate 31.6% | -$2,374 |
| Net yearly cost | $11,626 |
What affects childcare costs in Houston
Staff-to-child ratios set by the state are the main reason infant care costs more than preschool. Lower rent and no state income tax help Houston budgets, while higher property tax, car costs and air-conditioning bills take some of that back.
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 Houston?
This estimate for full-time infant care is $14,000 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 Houston?
Yes, for eligible children. Texas public pre-K is free for four-year-olds who qualify, for example based on family income, English learner status or military family status, and Houston-area districts such as Houston ISD offer it. Workforce Solutions can help eligible families with care for younger children.
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.