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How big is the US child care industry? As of the latest Census County Business Patterns data, the United States has 82,162 employer daycare establishments employing 1,045,052 people, with a combined annual payroll of $31.0 billion. This page compiles the key statistics on the industry — market size, state-by-state distribution, wages, and new business formation — every number sourced directly to federal data.
Figures in the market-size tables cover employer establishments (child care businesses with paid staff). Home daycares run solely by the owner are counted separately in the solo operators section below.
Key Child Care Industry Statistics
- There are 82,162 employer daycare establishments in the United States (Census County Business Patterns, 2023).
- Employer firms are the minority form: 533,596 owner-run home daycares operate as nonemployer businesses (2023 Census Nonemployer Statistics) — 6.5 for every employer establishment.
- The industry employs 1,045,052 people with a combined annual payroll of $31.0 billion.
- Average pay works out to $29,695 per employee per year; the average establishment has 12.7 employees and carries $378k in annual payroll.
- California has the most establishments of any state — 9,670, or 11.8% of the national total.
- Relative to population, Maine is the most saturated market (48.0 establishments per 100,000 residents) and Nevada the least (12.2).
- Pay is highest in District of Columbia ($41,669 per employee per year) and lowest in Iowa ($21,205).
- The industry accounts for 0.98% of all US employer establishments.
- Americans filed 386,004 new business applications in the broader Health Care and Social Assistance sector in the twelve months from Aug-2025 through Jul-2026 — a +16.2% change year over year (Census Business Formation Statistics).
Market Size
| Measure | Value |
|---|---|
| Employer establishments | 82,162 |
| Employees | 1,045,052 |
| Annual payroll | $31.0 billion |
| Average pay per employee | $29,695/year |
| Average employees per establishment | 12.7 |
| Average payroll per establishment | $378k/year |
| Share of all US employer establishments | 0.98% |
The Biggest States
| State | Establishments | Employees |
|---|---|---|
| California | 9,670 | 89,288 |
| New York | 6,702 | 84,613 |
| Texas | 6,242 | 91,240 |
| Florida | 4,651 | 64,646 |
| Pennsylvania | 3,823 | 46,742 |
Market size is not market opportunity: relative to population, Maine is the most saturated state (48.0 establishments per 100,000 residents) while Nevada is the thinnest (12.2). We rank every state on saturation, revenue proxies, labor cost, and formation momentum in the Best States to Start a Daycare index.
Wages by State
| Highest pay per employee | Annual |
|---|---|
| District of Columbia | $41,669 |
| California | $37,322 |
| Massachusetts | $36,239 |
| Washington | $35,223 |
| New York | $34,560 |
| Lowest pay per employee | Annual |
|---|---|
| Iowa | $21,205 |
| South Dakota | $22,216 |
| Mississippi | $22,890 |
| Louisiana | $23,077 |
| North Dakota | $23,282 |
Solo Operators: The Nonemployer Side of the Industry
The employer figures above are only part of the picture. The Census Bureau counts businesses with no paid employees separately, as nonemployers — and in this industry they are the majority: 533,596 owner-run home daycares filed as nonemployer businesses in 2023, about 6.5 for every employer establishment. Together they took in $11.1 billion in receipts — an average of $20,886 per solo business per year.
States With the Most Owner-Run Home Daycares
| State | Nonemployer businesses | Avg annual receipts | Solo per employer firm |
|---|---|---|---|
| California | 89,457 | $25,368 | 9.3 |
| Texas | 50,317 | $14,484 | 8.1 |
| New York | 43,004 | $21,458 | 6.4 |
| Florida | 32,708 | $16,977 | 7.0 |
| Illinois | 27,456 | $21,053 | 8.7 |
Solo operation dominates most in Nevada (13.3 nonemployers per employer establishment) and least in New Hampshire (2.2), where a larger share of the industry runs on payroll.
How Much Do Daycares Make?
The honest federal answer comes in two parts. For solo operators, the Census reports actual revenue: the average nonemployer daycare grossed $20,886 in annual receipts in 2023 — gross revenue before expenses, not take-home income. For employer firms, the Census does not publish revenue at the state level, but payroll gives the scale: the average establishment carries $378k in annual payroll across 12.7 employees.
Where Solo Owner-Run Home Daycares Gross the Most
| State | Avg annual receipts (solo) | Solo businesses |
|---|---|---|
| Washington | $42,672 | 7,641 |
| Massachusetts | $39,453 | 8,307 |
| Minnesota | $35,371 | 9,845 |
| South Dakota | $32,575 | 2,019 |
| North Dakota | $29,392 | 1,978 |
States with fewer than 1,000 nonemployer businesses excluded to avoid small-sample noise. Receipts are gross revenue as reported to the IRS, before any expenses.
New Business Formation
The Census Bureau tracks new business applications weekly. In the twelve months from Aug-2025 through Jul-2026, Americans filed 386,004 applications in the Health Care and Social Assistance sector (the broader NAICS sector containing daycare businesses) — a +16.2% change from the prior twelve months. State-by-state application counts, per-capita rates, and trends are on our business formation statistics page, updated monthly. For how new ventures fare once launched — 1-, 5-, and 10-year odds in every state — see business survival rates by state; for what they borrow to get started, SBA loan statistics. For insurance requirements state by state, see the daycare insurance guide.
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Thinking about joining these numbers?
Every daycare in these statistics started with a business entity. Bizee files your LLC — you pick the package and pay the state fee, in any state.
Frequently Asked Questions
How many daycare businesses are there in the US?
There are 82,162 employer daycare establishments in the United States as of the 2023 Census County Business Patterns, employing 1,045,052 people. Figures in the market-size tables cover employer establishments (child care businesses with paid staff). Home daycares run solely by the owner are counted separately in the solo operators section below.
How big is the US child care industry?
Measured by payroll, employer establishments in the industry pay $31.0 billion in annual wages across 1,045,052 employees — an average of $29,695 per employee per year.
Which state has the most daycare businesses?
California leads with 9,670 employer establishments (11.8% of the US total), followed by New York (6,702) and Texas (6,242).
How many self-employed owner-run home daycares are there in the US?
The Census Bureau’s 2023 Nonemployer Statistics count 533,596 daycare businesses with no paid employees — owner-run home daycares operating alone — averaging $20,886 in annual receipts. That is about 6.5 solo businesses for every employer establishment in the industry.
How much does a daycare make?
For solo operators the Census reports actual revenue: the average nonemployer daycare grossed $20,886 in 2023 — gross receipts before expenses, not profit. Employer firms are larger: the average establishment carries $378k in annual payroll across 12.7 employees; the Census does not publish their revenue at the state level.
Sources & Citation
| Data | Source | Vintage |
|---|---|---|
| Establishments, employment, payroll (NAICS 624410, Child Care Services) | U.S. Census Bureau, County Business Patterns | 2023 |
| Business applications | U.S. Census Bureau, Business Formation Statistics | Aug-2025 through Jul-2026 |
| Solo operators (nonemployer businesses, NAICS 62441, Child Care Services) | U.S. Census Bureau, Nonemployer Statistics | 2023 |
| State population (per-capita rates) | U.S. Census Bureau, Population Estimates | 2024 |
You are welcome to cite these statistics with attribution and a link to this page.