How to Start a Daycare in Hawaii (2026)

Last updated: May 1, 2026

Starting a daycare in Hawaii means navigating two different state agencies that have grown rapidly over the past five years. Child care licensing sits with the Hawaii DHS Benefit, Employment and Support Services Division (BESSD) Child Care Program under HRS § 346-152 and Hawaii Administrative Rules Title 17, Chapters 891.1, 892.1, 895, and 896. The state pre-K system runs separately through the Executive Office on Early Learning (EOEL) — and EOEL is in the middle of one of the largest public pre-K expansions in U.S. state history under Lt. Governor Sylvia Luke’s “Ready Keiki” initiative, which is targeting universal access to pre-kindergarten by 2032. By August 2026, 50 new public pre-K classrooms will have opened statewide, adding 1,000 new seats for a statewide total of more than 2,700 seats — a meaningful demand-side shift that operators need to model into their enrollment projections.

The other items that define a Hawaii daycare: the Child Care Subsidy program (formerly known as Child Care Connection Hawaii / CCCH) administered through DHS BESSD pays subsidies to DHS-approved providers for income-eligible working families; the Preschool Open Doors (POD) program subsidizes private pre-K tuition for 3- and 4-year-olds (2025-2026 application period closed January 30, 2026 or upon funding cap); Hawaii’s worker-protection stack (workers’ comp at 1 employee, PHCA at 20+ hours/week, TDI, $16 minimum wage as of January 1, 2026) applies to every employee; and background checks through the Hawaii Criminal Justice Data Center (HCJDC) and FBI are required for all staff and any household member age 18+ in family child care homes. Federal Child Care Development Fund (CCDF) policy uncertainty is real in 2026 — DHS has acknowledged the potential for federal funding pressure but has not received notice of CCDF cuts as of this guide’s update date. This guide covers the actual regulatory and funding path.

Daycare Requirements in Hawaii at a Glance

Requirement	Agency / Detail	Cost	Timeline
LLC Articles of Organization	DCCA BREG via Hawaii Business Express	$50	3-5 business days
GET License (Form BB-1)	Hawaii Tax Online	$20 one-time	5-7 days online
Family Child Care Home License (in-home, small group)	DHS BESSD Child Care Program — HAR 17-895	Application + biennial renewal fees	3-6 months from application to license issuance
Group Child Care Home License (mid-size)	DHS BESSD Child Care Program — HAR 17-896	Application + biennial renewal fees	3-6 months
Group Child Care Center License (commercial center)	DHS BESSD Child Care Program — HAR 17-892.1	Application + biennial renewal fees + plan review for new construction	6-12 months including site approval
Background Checks (operator + every staff member + household 18+)	Hawaii Criminal Justice Data Center (HCJDC) + FBI fingerprint check	$30-$60 per check	Required before opening; results 4-8 weeks
CPR + First Aid Certification (every staff member)	American Red Cross, American Heart Association, or equivalent	$50-$100 per person	Renewable every 2 years
Tuberculosis Screening (every staff member)	Local clinic or DOH	$50-$100	Required before staff begins work
Workers’ Compensation Insurance	DLIR DCD; private carrier	2-4% of payroll typical for child care	Required at 1+ employee under HRS 386
Prepaid Health Care Act coverage	DLIR DCD; private health plan	50% of premium employer share	For any employee 20+ hr/wk
Temporary Disability Insurance (TDI)	DLIR DCD; private TDI carrier	Up to 0.5% wages, $7.50/wk max (2026)	For any employee 20+ hr/wk
UI Registration	DLIR Unemployment Insurance Division	2.40% on $64,500 wage base (2026 Schedule C)	Within 20 days of first hire
General Liability + Sexual Abuse / Molestation insurance	Child-care-specialty commercial insurer	$1,500-$5,000/year	Required by lease and parent contracts
Building / Fire Code compliance	County Building Department + State Fire Marshal	Permit fees vary; sprinkler retrofits if required	Inspection before licensing

How to Start a Daycare in Hawaii (Step by Step)

Step 1: Form Your LLC and Register for GET

File Articles of Organization at DCCA BREG via Hawaii Business Express for $50. Get a free EIN. File Form BB-1 at Hawaii Tax Online for the $20 one-time GET license.

GET applies to child care tuition revenue at the standard 4.5% combined rate (4.0% state + 0.5% county surcharge) in all four counties through December 31, 2030. Factor this into your tuition rate from day one — Hawaii operators typically increase posted tuition by approximately 4.7% to absorb the GET pass-on.

Step 2: Choose Your License Type Under HAR Title 17

Hawaii’s child care licensing is structured around HRS § 346-152 (statutory authority and exemptions) and HAR Title 17, Chapters 891.1, 892.1, 895, and 896 (administrative rules). The four chapters split licensing by setting:

License Type	HAR Chapter	Setting	Capacity / Notes
Family Child Care Home	HAR 17-895	Provider’s own home	Small group of children; provider lives at the location; every household member 18+ requires background check
Group Child Care Home	HAR 17-896	Home or smaller commercial space	Mid-size; multiple staff; expanded capacity
Group Child Care Center	HAR 17-892.1	Commercial center / standalone facility	Largest capacity; full commercial buildout; plan review and fire code apply
Infant and Toddler Care (subset)	HAR 17-891.1	Specific rules for infant/toddler programs	Lower ratios than preschool ages

Specific child-to-staff ratios, square-footage requirements, and physical-environment standards are detailed in HAR Title 17 chapters and updated periodically. Confirm current ratios with your DHS Child Care Licensing inspector before signing a lease — what fits in California or Texas may not fit in Hawaii because the rules differ. The Child Care Licensing Program contact is humanservices.hawaii.gov/bessd/child-care-program/child-care-licensing/.

Step 3: Background Checks — HCJDC and FBI

Hawaii’s child care background check requirement is one of the more comprehensive in the U.S. Every:

• Operator / owner
• Director and assistant director
• Every paid staff member (full-time and part-time)
• Every volunteer who has unsupervised contact with children
• For Family Child Care Homes: every household member age 18 or older

…must clear a Hawaii Criminal Justice Data Center (HCJDC) state criminal history check plus an FBI fingerprint background check. Costs run $30-$60 per check; results take 4-8 weeks. Disqualifying offenses include child abuse, neglect, certain drug offenses, sexual offenses, and violent felonies — disqualified persons cannot be present at the daycare during operating hours. Background checks must be re-run periodically (verify the renewal cycle with DHS at license renewal).

Step 4: Staff Qualifications, CPR, First Aid, and TB Screening

Hawaii’s child care staffing rules require minimum qualifications for the operator, director, and lead caregivers. Specifics vary by license type — in general:

• Director / operator: typically requires a bachelor’s degree in early childhood education or related field plus experience, or equivalent demonstrated competency. Verify with HAR Title 17 for your license type
• Lead teacher / caregiver: Child Development Associate (CDA) credential or equivalent education plus supervised experience
• Aides / assistants: high school diploma plus on-the-job training
• Pre-service training: 16-30 hours typically required before unsupervised contact with children
• Annual continuing education: 12-20 hours per staff member typically required
• CPR + First Aid certifications: required for every staff member, current at all times. American Red Cross or American Heart Association courses; pediatric CPR for infant/toddler staff
• Tuberculosis screening: required before any staff member begins work and periodically thereafter

Step 5: Worker-Protection Stack — WC, PHCA, TDI, UI

• Workers’ compensation (HRS 386): required at 1+ employee. Child care NCCI rates run 2-4% of payroll — moderate-injury industry primarily for back strain (lifting children) and slip/trip risk
• Prepaid Health Care Act (HRS 393): 20+ hr/week employees require employer-paid health insurance with employer paying ≥50% of premium. Most child care lead teachers exceed 20 hours and are PHCA-eligible
• Temporary Disability Insurance (HRS 392): 0.5% / $7.50/week (2026) employee contribution cap
• $16/hour minimum wage effective January 1, 2026 — particularly impactful for child care because the industry’s traditional aide-level wages historically tracked just above prior $14 minimum
• UI Registration: 2.40% new-employer rate on $64,500 wage base, 2026 Schedule C; register at uiclaims.hawaii.gov within 20 days of first hire
• New Hire Reporting: CSEA within 20 days under HRS 576D-16

Step 6: Child Care Subsidy and Preschool Open Doors

Hawaii’s two main publicly funded subsidy paths for private daycare operators:

Child Care Subsidy (formerly Child Care Connection Hawaii / CCCH)

Administered through DHS BESSD. Pays subsidies to DHS-approved providers for income-eligible working families. Eligibility: children under 13, or 13-18 if disabled and unable to self-care; parents or caretakers must be employed, in education, or in job training. Income limits are tied to State Median Income (SMI) — typically up to 85% of SMI in Hawaii.

To accept Child Care Subsidy, providers must be licensed (or in some cases, a registered exempt provider) and complete a DHS provider registration. Reimbursement rates are set by DHS and updated periodically.

Preschool Open Doors (POD)

Subsidizes private pre-K tuition for income-eligible families with 3- and 4-year-olds. Application periods open seasonally; the 2025-2026 POD application period closed January 30, 2026 or upon funding cap, whichever was first. Providers must be DHS-approved.

Federal CCDF policy uncertainty (2026)

The federal Child Care Development Fund (CCDF) is a primary funding source for state child care subsidies. As of this guide’s update, Hawaii DHS has acknowledged potential federal funding pressure but has not received formal notice of CCDF cuts. Operators relying on subsidy revenue should monitor DHS communications and have contingency plans. Public Assistance Information Line: 1-855-643-1643.

Step 7: EOEL Ready Keiki and the Universal Pre-K Rollout

Hawaii’s Executive Office on Early Learning (EOEL), established in 2012, runs Hawaii’s free public pre-K program. Lt. Governor Sylvia Luke’s Ready Keiki initiative is targeting universal access to public pre-K for all Hawaii families by 2032.

• By August 2026: 50 new public pre-K classrooms will have opened statewide, adding 1,000 new seats — for a statewide total of more than 2,700 seats
• 2026-2027 application period: opened March 2, 2026 at earlylearning.ehawaii.gov
• Class size: 20 children per classroom with 2 teachers
• Cost to families: free

Implication for private operators: public pre-K rollout will compress private 3- and 4-year-old enrollment in some neighborhoods, particularly in lower-income areas where public pre-K opens first. Private operators positioned for under-3 care, extended hours (before/after public pre-K schedule), and high-touch programs (Montessori, Reggio, language immersion) are less affected. Operators heavily dependent on private 3- and 4-year-old tuition should model the rollout impact on their service area through 2032.

Hawaii Daycare Market: Where the Demand Is

Tight supply across all islands. Hawaii has a persistent child care supply shortage, especially for infants and toddlers. Waitlists at quality programs commonly run 6-18 months on Oʻahu; neighbor islands have fewer programs but smaller demand pools. The supply gap means licensed operators can typically maintain near-full enrollment.

Honolulu working-parent demand: Concentrated in Kakaʻako, Mānoa, Kahala, Aiea, Pearl City, Kapolei, and Mililani. Working professional households support tuition rates of $1,400-$2,400/month for full-time infant care, $1,200-$2,000/month for toddler/preschool. Corporate-sponsored child care (employer subsidies, on-site care) is growing in Kakaʻako tech hubs.

Military families on Oʻahu: Joint Base Pearl Harbor-Hickam, Schofield Barracks, Marine Corps Base Hawaii, and Tripler Army Medical Center together support a large military family population. Military Child Care Fee Assistance program subsidizes off-base care for active-duty families. Reliable, year-round demand.

Maui and Big Island professional households: Kahului, Wailuku, Kihei (Maui); Hilo, Waikoloa, Kona (Big Island) — smaller markets with consistent professional-family demand. Tuition runs slightly below Oʻahu but operating costs are also lower.

Native Hawaiian and cultural early learning programs: ʻAha Pūnana Leo (Hawaiian language immersion), Native Hawaiian charter schools’ associated early-learning programs, and culturally grounded preschools serve a meaningful market. Demand for Hawaiian-language and culturally-grounded early childhood education is growing.

Higher-end private preschool (Montessori, Reggio Emilia, language immersion): Mid-Pacific Institute, Hanahauoli, La Pietra (Honolulu private K-12 schools with feeder pre-K) and a number of Montessori and language-immersion preschools serve high-income Honolulu families at tuition rates of $1,800-$3,200/month. Limited supply, long waitlists, and durable demand even as public pre-K expands.

Cost to Start a Daycare in Hawaii

Family Child Care Home (Provider’s Own Home)

Item	Cost	Notes
LLC + GET license + first annual report	$85	$50 + $20 + $15
Home modifications (childproofing, fencing, fire safety)	$2,000-$10,000	Outlet covers, gates, smoke alarms, fire extinguishers, secure outdoor area
Background checks (operator + household members 18+)	$120-$300	$30-$60 per check; HCJDC + FBI
CPR/First Aid + TB screening	$100-$200	Initial certifications
Initial supplies (toys, art, learning materials, cribs, mats)	$2,000-$5,000	Age-appropriate equipment
General liability + sexual abuse/molestation insurance	$1,000-$3,000/year	Child-care-specialty policy
Marketing (signage, website, Google Business Profile)	$500-$1,500	Word-of-mouth dominates new family acquisition
Estimated total: $5,805-$20,085

Group Child Care Center (Commercial Buildout)

Item	Cost	Notes
LLC + GET license	$70	$50 LLC + $20 GET
Lease deposit + first 2 months commercial space	$10,000-$30,000	Commercial space in Honolulu/Oʻahu
Tenant improvements (classrooms, restrooms, kitchen)	$30,000-$120,000	Major buildout for licensed center
Fire sprinkler retrofit (if required)	$10,000-$40,000	Required in many commercial spaces under Hawaii fire code
Outdoor play area (fenced, equipped)	$5,000-$25,000	State-required outdoor space
Furniture, equipment, classroom materials	$15,000-$40,000	Cribs, tables, chairs, learning materials, art supplies
Background checks (full staff, ~10 staff)	$300-$600	$30-$60 per check
Workers’ compensation (10 staff, $400K payroll)	$8,000-$16,000/year	2-4% of payroll
PHCA (multiple qualifying employees)	$25,000-$50,000/year	50% of premium per qualifying employee
TDI	$1,500-$3,000/year	Bundled with PHCA broker typically
UI (10 employees)	~$15,000/year	2.40% on $64,500 wage base × 10
GL + sexual abuse/molestation insurance	$3,000-$6,000/year	Center-specialty coverage
Initial marketing, signage, brand	$5,000-$15,000	Grand opening, website, brochures
Estimated total: $128,000-$345,000+ (TI and PHCA dominate)

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• How to Start a Cleaning Service in Hawaii
• How to Start a Food Truck in Hawaii

← Back to all Hawaii business guides

Frequently Asked Questions

What state agency licenses daycares in Hawaii?

The Hawaii Department of Human Services Benefit, Employment and Support Services Division (BESSD) Child Care Program licenses daycares under HRS § 346-152 and Hawaii Administrative Rules Title 17, Chapters 891.1, 892.1, 895, and 896. There are three primary license types: Family Child Care Home (in-home, HAR 17-895), Group Child Care Home (mid-size, HAR 17-896), and Group Child Care Center (commercial center, HAR 17-892.1). Note: state pre-K is administered separately through the Executive Office on Early Learning (EOEL).

What background checks are required for Hawaii daycare staff?

Every operator, staff member, and (in Family Child Care Homes) every household member age 18 or older must clear a Hawaii Criminal Justice Data Center (HCJDC) state criminal history check plus an FBI fingerprint background check. Costs run $30-$60 per check; results take 4-8 weeks. Disqualifying offenses include child abuse and neglect, certain drug offenses, sexual offenses, and violent felonies. Background checks must be renewed periodically.

What is the Ready Keiki initiative and how does it affect private daycares?

Ready Keiki is Lt. Governor Sylvia Luke’s plan to provide universal access to free public pre-kindergarten for all Hawaii families by 2032. Implementation is well underway: by August 2026, 50 new public pre-K classrooms will have opened statewide, adding 1,000 new seats for a statewide total of more than 2,700 seats. Each classroom has 20 children and 2 teachers. For private daycare operators, the rollout will compress private 3- and 4-year-old enrollment in some neighborhoods over the next 5-7 years. Operators positioned for under-3 care, extended hours, or specialty programs (Montessori, language immersion, cultural curriculum) are less affected.

What is the Child Care Subsidy program in Hawaii?

The Child Care Subsidy program (formerly Child Care Connection Hawaii / CCCH) is administered through DHS BESSD. It pays subsidies to DHS-approved daycare providers for children of income-eligible working families. Eligibility: children under 13, or 13-18 if disabled and unable to self-care; parents or caretakers must be employed, in education, or in job training. Income limits tied to State Median Income (typically up to 85% SMI). To accept subsidies, providers must be licensed and complete DHS provider registration. Federal CCDF policy uncertainty in 2026 is a real planning consideration; confirm current funding status with DHS at 1-855-643-1643.

Does Hawaii’s GET apply to daycare tuition?

Yes. Hawaii’s General Excise Tax applies to all gross receipts of a business, including child care tuition. The combined rate is 4.5% in all four counties through December 31, 2030. Maximum visible pass-on rate to families is 4.7120%. Most Hawaii daycare operators bake the GET into their posted tuition rather than itemizing — this is a cost mainland operators consistently miss when modeling Hawaii operations.

How much does it cost to open a daycare in Hawaii?

For a Family Child Care Home in your own residence, year-one costs run $5,805-$20,085 covering home modifications, background checks, supplies, and insurance. For a Group Child Care Center with commercial buildout, year-one investment runs $128,000-$345,000+, dominated by tenant improvements ($30K-$120K), fire sprinkler retrofits if required ($10K-$40K), Prepaid Health Care Act premiums ($25K-$50K for a 10-staff center), and lease deposits. The biggest mainland-vs-Hawaii cost differences: PHCA employer-paid health insurance for 20+ hour staff, Hawaii’s commercial lease premium, and material/equipment shipping cost premium over mainland prices.