Childcare in LA: daycare costs, nannies and free transitional kindergarten

Australian parents arrive in LA used to the Child Care Subsidy knocking a big chunk off the daycare bill. In California, you pay the full price until your child turns four. Then something very good happens: free public school.

The short version

• Australia's Child Care Subsidy stops when you leave Australia to live overseas [7]. There's no US equivalent paying the centre directly.
• Full-time licensed infant care in California had a median cost of about US$19,700 a year in a centre and about US$14,800 in a family child care home in 2022 data. LA prices are often higher today [4].
• Transitional kindergarten (TK) is free and open to every child who turns four by 1 September, from the 2025–26 school year [1].
• TK is optional, has an average of at least one adult for every 10 children, and is followed by kindergarten at five [1][3].
• US tax breaks help a bit: an employer dependent care account of up to US$7,500 a year from 2026, and a federal credit on up to US$3,000 or US$6,000 of care costs [5][6].

What childcare costs in LA

There are three main types of care for under-fours, and prices vary a lot by suburb. A centre on the Westside will usually cost more than one in the Valley.

Those medians come from state data built on the US Department of Labor's childcare price database [4]. They're three or four years old, and LA is one of the pricier parts of the state, so treat them as a floor, not a quote. Call three or four centres near your home or work and ask for current monthly fees, registration fees and annual increases.

Waiting lists

Good infant rooms in LA fill well ahead. Many families get on waiting lists while still pregnant, and some centres charge a non-refundable fee to join the list. If you're moving from Australia with a baby, start calling before you fly. Ask:

1. How long is the waiting list for my child's age group, honestly?
2. What's the full monthly fee, and what's the annual increase been?
3. What are the hours, and is there a late pick-up charge?
4. How many children per adult in each room?
5. Can I see your state licence and recent inspection record?

Nannies

Plenty of LA families use nannies, especially with long commutes. A nanny you hire directly is generally your employee, not a contractor. That brings minimum wage, overtime and household employer tax obligations. Get advice before you hire, and factor the employer taxes into your budget.

Transitional kindergarten: free school at four

This is the best-kept secret for Aussie parents arriving with a three- or four-year-old. California has phased in universal transitional kindergarten, and from 2025–26 every district must offer TK to children who turn four by 1 September [1]. LAUSD calls it Universal Transitional Kindergarten (UTK) and uses the same birthday rule [3].

What TK looks like:

• It's free. The California Department of Education describes TK as the only part of its universal pre-kindergarten offer that is "universally available, and free of cost" [1].
• It's optional. Your child doesn't have to go. Families can choose TK, state preschool, Head Start, private preschool or care at home until six [1].
• Small groups. From 2025–26, schools must keep an average of at least one adult for every 10 children at each site, and average TK class size can't exceed 24 [1][2].
• Qualified teachers. From August 2025, TK teachers need early childhood qualifications or comparable classroom experience [2].
• Public school setting. TK runs in elementary schools, so your child is at "big school" a year earlier than in most of Australia.

The gap between the bell and your workday

TK runs on a school day, which won't cover a full working day. California's Expanded Learning Opportunities Program funds before-school, after-school, summer and intersession programmes for children from TK to 6th grade [8]. Ask your school what's offered on site and whether it costs anything, as access and fees vary.

Some families also combine TK with part-day California State Preschool Program care, which is allowed if the hours don't overlap [1].

Enrolling in TK

1. Check the birthday. Your child must turn four on or before 1 September of that school year [3].
2. Find your resident school with LAUSD's Resident School Identifier, or check your local district if you live in Santa Monica, Culver City or another separate district.
3. Apply early. Most LAUSD schools open enrolment for new UTK and kindergarten students in mid-April [3].
4. Bring documents. Proof of age, a parent's photo ID, proof of address and immunisation records [3].

Our guide to LAUSD schools and school districts in LA explains how your address decides your school.

US tax breaks vs the Child Care Subsidy

The US doesn't subsidise care the way Australia does, but there are two tax breaks worth knowing.

The dependent care FSA

Many US employers offer a dependent care flexible spending account. You set aside pre-tax salary and use it for daycare, preschool or after-school care. The limit rose from US$5,000 to US$7,500 for tax years beginning on or after 1 January 2026 [6], but employers don't have to adopt the higher limit [6]. Enrol during open enrolment or within the window after you start work.

The federal credit

The child and dependent care credit covers a share of what you pay for care so you can work. From 2026, the maximum rate rises from 35% to 50%, with the same expense caps of US$3,000 for one child and US$6,000 for two or more [5]. The rate drops as income rises, so many professional households get less than the maximum.

Both of these interact with each other, and with California's own rules, so check with a tax adviser who knows US and Australian tax.

The Australian angle

• The CCS ends when you move. Services Australia says that if you leave Australia to live in another country, your subsidy stops when you depart [7]. For a short trip, it can continue for up to six weeks if you keep paying for care in Australia [7].
• Social Security numbers for kids. US tax credits need a valid SSN for each child [9]. Children on E-3 dependant visas can't usually get one, which can rule out some credits. Our guide to getting a Social Security number in LA explains who qualifies.
• Babies born in LA are US citizens and can also become Australian citizens by descent. See our guide to citizenship by descent for babies born overseas.
• Moving home with a preschooler. A child who did TK in LA may be a year ahead of their Australian age group. Talk to your Australian school early.

Want recommendations for daycares or nanny shares near you? Ask in Cooee USA, our Facebook group for Australians in the USA, where Aussie parents swap waiting list tips and TK experiences.

Sources

1. Universal prekindergarten FAQs – California Department of Education
2. Transitional kindergarten report (2025–26 budget) – Legislative Analyst's Office
3. Enrollment FAQ – Los Angeles Unified School District
4. Child care cost in California – kidsdata.org (California Child Care Resource and Referral Network data)
5. One Big Beautiful Bill provisions – Internal Revenue Service
6. Dependent care FSA limit increased to $7,500 for 2026 – Hill Ward Henderson
7. Travel outside Australia rules for Child Care Subsidy – Services Australia
8. Expanded Learning Opportunities Program – California Department of Education
9. Tax benefits for parents and families – Internal Revenue Service

Keep reading

• LA schools: LAUSD, school districts and how your address decides
• US and California tax for Australians: treaty, FBAR and your super
• Cost of living in Los Angeles vs Sydney and Melbourne
• Babies born overseas: Australian citizenship by descent