Is a Second Income Worth It After Daycare? Real Numbers

A second income has to cover childcare before it covers anything else. At the national median, full-time center-based care for one infant runs $12,675 a year; for an infant plus a preschooler, $22,347 a year. On a $40,000 gross salary, one infant alone claims nearly a third of it — before taxes.

Key Takeaways

• National median center-based infant care: $243.75/week ($12,675/year).
• Infant + preschool center care together: $429.75/week ($22,347/year).
• On a $30,000 gross salary, two kids in center care claims 74.5% of gross pay — before taxes make it worse.
• These are gross-income shares only. Taxes, commuting, and the Child and Dependent Care Credit all change the real number — see below.
• The math is most useful as a floor: a second income clears less than the raw salary number suggests, once care for young children is subtracted.

What Does Childcare Actually Cost, Nationally?

The 2022 National Database of Childcare Prices puts the median U.S. center-based price for one infant at $243.75 a week — $12,675 a year. Add a preschooler at the median center price of $186.00 a week, and two kids together run $429.75 a week, or $22,347 a year. See the full breakdown by age in our worked example for two kids in daycare.

What Share of a Second Salary Does Childcare Take?

The table below shows childcare as a share of a gross (pre-tax) annual salary, at the national median price — for one infant, and for an infant plus a preschooler:

• $30,000 salary — 1 infant: 42.3% · 2 kids: 74.5%
• $40,000 salary — 1 infant: 31.7% · 2 kids: 55.9%
• $50,000 salary — 1 infant: 25.4% · 2 kids: 44.7%
• $60,000 salary — 1 infant: 21.1% · 2 kids: 37.2%
• $70,000 salary — 1 infant: 18.1% · 2 kids: 31.9%

These figures divide the national median childcare price by gross salary — nothing else. They deliberately exclude taxes, payroll deductions, commuting, work clothes, and any tax credit, because none of those numbers can be stated as a single national figure without becoming a guess. Every one of those factors narrows the real gap further (taxes shrink take-home pay; commuting and incidental costs add expense), so treat the percentages above as a floor, not a full answer.

What's Left Out — and Why It Matters

Two things push in the other direction and are worth checking for your own numbers rather than guessing at a national average:

• The federal Child and Dependent Care Credit and Dependent Care FSA can offset a real portion of the bill — the credit and the FSA interact, so the combined benefit depends on your specific income and expenses.
• Your local price may differ substantially from the national median — use the cost calculator with your county's actual price, not the national figure, for a number you can act on.

How to Run This for Your Own Numbers

1. Look up your county's actual infant and/or preschool price (not the national median) at childcare costs by state.

2. Multiply the weekly price by 52 to get an annual figure, and add prices together for each child in care.

3. Divide by the gross second salary being considered — that is your floor. Then subtract estimated taxes and add commuting costs to get closer to the real number, and check whether the Dependent Care FSA and tax credit apply to you.

For a fuller income comparison — median family income versus median household income, and how that changes the picture for a single earner — see single vs. dual income and the real affordability gap.