Childcare Costs in Memphis, TN (2026)
Average daycare, nanny, and au pair costs for the Memphis metro area
Childcare in Memphis is 11% below the national average for daycare center care. The most affordable option for a single infant is In-Home Daycare at approximately $9,520/year ($793/month), while a Full-Time Nanny is the most expensive at $39,520/year ($3,293/month) before employer taxes, based on Care.com's October 2026 average local nanny rate of $19.00/hour.
Families in Tennessee may also qualify for state-specific tax credits and childcare subsidy programs that can reduce these costs by $2,000–$6,000+ annually. Use our free calculator with zip code 38101 for personalized estimates including tax savings.
How Memphis Childcare Costs Compare
At $15,410/year for infant daycare, Memphis ranks #34 of 44 major U.S. metros we track — among the more budget-friendly large U.S. metros. Infant daycare here runs 11% below the national average of $17,260.
The cheapest regulated choice for a Memphis infant is an in-home daycare at $9,520/year; a private nanny is the priciest at $39,520/year, a $30,000 difference. A flat-rate au pair (~$22,000/year) costs about $6,590 more than a Memphis daycare center but $17,520 less than a full-time nanny.
Families with two children in care feel it most: an infant plus a toddler in daycare runs about $30,330/year in Memphis before any sibling discount (centers commonly offer 5–15% off the second child). On a weekly basis, infant care alone is roughly $296. Within Tennessee, infant daycare ranges from $15,410 in Memphis to $16,070 in Nashville, making Memphis the most affordable of the 2 Tennessee metros we track.
Average Annual Childcare Costs in Memphis
| Care Type | Infant (0–1) | Toddler (1–3) | Preschool (3–5) | School-Age (5–12) |
|---|---|---|---|---|
| Daycare Center | $15,410 | $14,920 | $13,260 | $5,500 |
| In-Home Daycare | $9,520 | $8,970 | $8,330 | $4,500 |
| Full-Time Nanny | $39,520 | $39,520 | $39,520 | $12,640 |
| Nanny Share | $26,350 | $26,350 | $26,350 | $8,430 |
| Au Pair | $22,000/year (flat rate per household) | |||
Costs are annual estimates for full-time care (5 days/week); school-age figures are before/after-school care (nanny: 15 hours/week) and exclude full-day summer care. Part-time schedules reduce costs proportionally. Nanny costs do not include employer payroll taxes (~10.25% additional). Sources: Care.com average nanny rates for Memphis, TN ($19.00/hour full-time, $16.21/hour after school, October 2026); Care.com 2026 Cost of Care Report national daycare rates, adjusted to the Memphis metro. How we calculate.
Monthly Childcare Costs in Memphis
Here's what families in Memphis can expect to pay per month for infant care (the most expensive age group):
How to Save on Childcare in Memphis
- Max out your Dependent Care FSA — Contribute up to $7,500 pre-tax in 2026 ($3,750 if married filing separately; employer plan required). At a 12–24% federal bracket plus 7.65% FICA that saves about $1,470–$2,380 before state tax. This benefit is available regardless of which state you live in.
- Claim the federal Child & Dependent Care Credit — For 2026 the credit is 20–50% of up to $3,000 (one child) or $6,000 (two or more), but dollars paid through a Dependent Care FSA reduce those caps, so a full $7,500 FSA leaves no credit.
- Tennessee has no state income tax — While you won't get state-level tax deductions, your take-home pay is higher, and all federal benefits still apply.
- Consider a nanny share — In Memphis, a nanny share costs roughly $26,350/year per family vs. $39,520/year for a solo nanny — a savings of $13,170/year.
- Check Tennessee subsidy programs — Enter your zip code in our calculator to see if you qualify for state-funded childcare assistance.
Tennessee Childcare Assistance & Subsidies
Tennessee Child Care Certificate Program
Tennessee provides childcare subsidies through the Child Care Certificate Program for eligible families earning below 85% of the State Median Income. Tennessee also offers free Voluntary Pre-K for income-eligible 4-year-olds.
State Tax Benefits
Tennessee has no state income tax on wages, so there are no state childcare tax credits. The Voluntary Pre-K program is the primary state-level benefit.
Learn more about maximizing your savings in our Childcare Tax Benefits Guide or see our full Tennessee Childcare Subsidies Guide.
Get Your Personalized Estimate
These are averages for the Memphis metro area. Your actual costs depend on your specific location, number of children, ages, and schedule. Our free calculator gives you a personalized breakdown including tax savings.
Calculate Your Costs (Zip: 38101)