Paying for Child Care in California: Subsidies, Tax Credits and Employer Benefits
Where California parents can look for help with child care costs, from subsidy programs to the federal tax credit.
Child care is one of the largest costs for many families. Several sources of help exist, but each has its own eligibility rules, so ask early. This guide points to the official places to check; it does not list prices or promise eligibility.
Child care subsidies
California runs child care and development programs for eligible families through the Department of Social Services and other agencies. The CDSS page on child care and development explains the programs. Local Resource and Referral agencies, found through the California Child Care Resource and Referral Network, can tell you which programs may fit, help you apply and may keep waiting lists. If you receive other public benefits, ask your caseworker about child care help.
Head Start and preschool
Head Start and Early Head Start provide early learning and family services to eligible children from low-income families, and some public preschool programs are free or low-cost. Check with your local school district and county office of education, and see the federal Office of Head Start for how to find a program.
Child and Dependent Care Credit
The federal tax code allows a credit for part of the child care costs that let you work or look for work, for a qualifying child. The IRS explains the rules, including who qualifies and what expenses count, on its credit page and in Publication 503. You will need the provider's name, address and taxpayer identification number to claim it, so ask providers for them when you enroll.
Employer benefits
Some employers offer a dependent care flexible spending account, which lets you set aside pre-tax money for child care within annual limits. Others offer discounts, backup care or onsite care. Ask your human resources office what is available and when you can enroll, because the enrollment window may be short.
Questions to ask providers
- What are the full costs: tuition, registration, deposits, supplies and late fees?
- Do you accept subsidy vouchers, and how are they paid?
- What is the policy for days when my child is absent or the center closes?
- How much notice do you give before raising rates?
- Do you offer sibling discounts or part-time schedules?
Check the license first
Some subsidy programs allow you to use licensed providers as well as certain license-exempt care. In either case, check a center's license in the state's Care Facility Search before you commit.
Keep records
Keep receipts, contracts and a record of payments to each provider, and ask for an annual statement. They will help with taxes, benefits and any dispute. If a provider asks for large payments up front or for cash only, think twice and ask for a written receipt.
This directory lists state license records only. It does not list prices, check eligibility or recommend any provider.
Start early
Waiting lists for subsidized programs and popular centers can be long, so start your search as early as you can, ideally while you are still pregnant or well before you need care. Ask to be put on more than one waiting list, and ask each program how it prioritizes applicants and whether there is a fee to join. Keep your contact details up to date, and respond quickly when a spot opens.
Where to get free help
Your local Resource and Referral agency, your county's social services office, your employer's human resources team and a tax preparer who offers free help through programs such as IRS volunteer tax assistance can all help you find money for child care and make sure you claim what you are entitled to. Ask questions and keep notes of whom you spoke with and what they told you.
General information only, current as of the date above. The information on California Daycare License Check is not a safety rating or recommendation. Inspection records show what the state found on the dates shown; problems may since have been corrected, and a clean record does not guarantee future safety. Visit any program in person and check the state's own records before you choose. Rules and programs change; check the official sources linked in this guide.