Daycare vs Nanny vs Au Pair in Chicago: Cost and Fit

For one baby in the Chicago area, a daycare center is usually the lowest-cost option of the three, at roughly $1,900 a month for an infant in the north and northwest suburbs. A full-time nanny usually costs the most, often $3,500 to $4,000 a month before payroll taxes. An au pair costs about $1,800 a month in fees and stipend, plus a spare bedroom, food and other living costs.

The right choice depends on more than price. Here is how the three compare on cost, hours, rules and day-to-day life, with numbers updated for 2026.

Cost at a glance

• Daycare center: licensed centers in north and northwest suburban Cook County averaged about $437 a week for an infant and $412 a week for a toddler, according to Illinois Action for Children. That is about $1,890 a month for an infant.
• Nanny: Chicago nannies averaged about $21 an hour in 2026, according to Nanny Lane, with most families paying $18 to $25. At 40 hours a week, that is about $850 a week or $3,680 a month, before employer taxes.
• Au pair: one large agency charges a program fee of about $11,245 a year for new families. The State Department minimum stipend is $195.75 a week, and families also pay up to $500 toward the au pair's classes. That adds up to roughly $21,900 a year, or about $1,830 a month, plus room and board.

These are averages. Your real cost depends on your neighborhood, your child's age, the number of children and the hours you need. Our Illinois daycare cost guide covers center prices in more detail.

The number of children changes the math

Daycare tuition is charged per child. A second child roughly doubles the bill, minus any sibling discount.

A nanny often charges only $1 to $2 more an hour for a second child. An au pair costs the same whether they care for one child or three. For families with two or three young children, a nanny or au pair can come close to the cost of daycare, or even cost less.

Daycare center: pros and cons

Pros:

• Lowest cost for one child in most cases
• Licensed and inspected every year by the state
• Several trained adults on site, plus a director
• Care continues when a teacher is sick or on vacation
• Daily social time with other children, a set routine and a curriculum
• No payroll, taxes or employer paperwork for you

Cons:

• Fixed hours and late pickup fees
• Children cannot attend when sick, so you still need backup care
• More colds in the first year
• Drop-off and pickup add to your commute
• Infant spots can have waitlists

Nanny: pros and cons

Pros:

• One-on-one care in your home
• Flexible schedule and no commute for drop-off
• Can often care for a mildly sick child
• Can handle extras like children's laundry, meals and school pickup

Cons:

• The highest cost for one child
• You become an employer, with payroll, taxes and labor rules
• No coverage when the nanny is sick or on vacation
• Less daily time with other children unless you plan playdates and classes
• No state inspection, so screening is up to you

A nanny share, where two families split one nanny, can lower the cost for each family while adding a playmate.

Au pair: pros and cons

Pros:

• Live-in help for up to 45 hours a week
• Same price for one child or several
• Cultural exchange and often a second language at home
• Flexible schedule within the program's rules

Cons:

• You need a private bedroom and must provide meals
• Au pairs are young, usually 18 to 26, and may have less experience
• Program limits of 10 hours a day and 45 hours a week, with time off and two weeks of paid vacation
• Rules for babies: a parent or other responsible adult must be home when a baby is under 3 months, and only au pairs with infant experience can be placed with children under 2
• The au pair lives with you, which affects privacy
• Program fees and stipend rules can change, so confirm the latest figures with each agency

Taxes and paperwork

With daycare, you pay tuition and get a receipt. You can usually pay with a dependent care FSA and claim the child and dependent care tax credit.

A nanny is usually your household employee. Once wages pass the IRS threshold for the year, you generally owe Social Security and Medicare taxes, plus federal and Illinois unemployment taxes, and you must give your nanny a W-2. Illinois' Domestic Workers' Bill of Rights also gives nannies minimum wage, overtime protection and a day of rest. Many families use a payroll service to handle this. Nanny costs can also count toward an FSA and the tax credit when paid on the books.

Au pair rules are set by the federal exchange visitor program and the sponsor agency. Ask the agency how stipend payments are handled for tax purposes.

Which option fits your family?

• Choose daycare if you have one or two children, a standard workday, and you want reliable care with oversight and peers.
• Choose a nanny if you have several young children, irregular hours or a long commute, and the budget to be an employer.
• Choose an au pair if you have a spare bedroom, two or more children, and you enjoy the idea of a live-in cultural exchange.

Many families combine options. A child might have a nanny as a baby, then start daycare or preschool at 2 or 3 for the social side and early learning.

Frequently asked questions

Is a nanny cheaper than daycare in Chicago?

For one child, rarely. For two or three young children, a nanny or nanny share can cost about the same as daycare.

How much does an au pair cost per month?

About $1,800 to $1,900 a month in agency fees, stipend and the education contribution, plus room, board and other living costs.

Do I have to pay taxes for my nanny?

Usually, yes, once you pay more than the IRS threshold in a year. A household payroll service can file for you.

Can an au pair care for a newborn?

With limits. A parent or other responsible adult must be home with a baby under 3 months, and au pairs caring for children under 2 must have infant care experience.

Daycare at Children's Land

Children's Land offers licensed care from 6 weeks old at locations across Chicago's northwest side and the north and northwest suburbs, open 7:00 AM to 6:00 PM. Our infant program gives each baby a primary teacher, and families get hot breakfast and lunch, cameras in every classroom and CPR-certified staff. Find a location or contact us to ask about tuition and openings.

Related reading: In-Home Daycare vs Daycare Center: Pros and Cons.