What this calculator does
This calculator estimates the yearly cost of childcare in Washington DC by type of care and number of children, then shows how much a dependent care FSA can save. DC has high childcare costs for infants and toddlers, but it offers free universal pre-K for three- and four-year-olds, one of the most extensive programs in the country, and a child care subsidy program for eligible families.
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 = Washington DC 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 Washington DC: infant center $28,000, toddler $25,000, preschool $20,000, family child care $15,500 per year, nanny $25 an hour. These are Rate and Reason estimates, not official figures.
Worked example for Washington DC
| Item | Amount |
|---|---|
| Care type | infant |
| Children | 1 |
| Starting price per child (Washington DC estimate) | $28,000 |
| Yearly cost | $28,000 |
| Dependent care FSA (up to $7,500) x your marginal rate 40.2% | -$3,011 |
| Net yearly cost | $24,989 |
What affects childcare costs in Washington DC
Staff-to-child ratios set by the state are the main reason infant care costs more than preschool. DC's rent is high and taxes are mid-range, while universal pre-K and good transit lower some family and commuting costs.
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 Washington DC?
This estimate for full-time infant care is $28,000 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 Washington DC?
Yes. DC offers free universal pre-K for three- and four-year-olds through DC Public Schools and public charter schools, with seats assigned through the My School DC lottery. Infant and toddler care is not covered, so costs are highest before age three.
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.