Tennessee child care child care subsidy
Eligibility basis, income limits, and family copay. This page isolates the configured Tennessee figures, related explanations, and primary source links from the full licensing guide.
Cited to TDHS Rules 1240-04-01Verified June 2026Summary only, not legal advice
- Program
- Smart Steps
- Attendance / signature record
- TDHS Attendance
- Eligibility basis
- State Median Income (FY2026). Entry: countable gross monthly household income below 85% of Tennessee SMI. Continuing eligibility runs up to 100% SMI via Smart Steps Plus at redetermination.
- Income eligibility
- Effective October 1, 2025, a family's countable gross monthly household income must be below 85% of Tennessee SMI (FY2026) to first qualify (for example up to $6,112/mo for a family of 3, or $7,277/mo for a family of 4). At redetermination, families already enrolled whose income rises into the 86th to 100th SMI percentile may remain under Smart Steps Plus, so continuing eligibility runs up to 100% SMI (for example $7,191/mo for a family of 3, or $8,561/mo for a family of 4). Verified against the official TN DHS chart effective October 1, 2025.
- Monthly income limits (by household size)
- 2 in household: $4,948/mo3 in household: $6,112/mo4 in household: $7,277/mo5 in household: $8,441/mo6 in household: $9,605/mo7 in household: $9,824/mo
- Family copay
- Effective October 1, 2025, the weekly parent co-pay is a flat 5% of countable gross monthly household income (times 0.05 divided by 4.3 for the weekly figure, rounded down to a whole dollar, then split evenly among all children in care): a single formula with no income-band tiers. It is paid weekly by the parent directly to the provider. Example: a family of 4 at $3,900/mo gives $195, divided by 4.3 is $45/week, divided by 2 children is $22.50/week per child. Parents may also owe an overage if the provider's rate exceeds the state payment. Per TN's broader October 2025 funding changes, the prior co-pay waiver for families at or below 150% FPL was eliminated; only specific groups such as Families First/TANF and certain foster or DCS referrals retain full waivers.
- Grace absence days
- Up to 5 paid absence days per year
- Source
- Figures effective 2025. Official Tennessee program source
Citation: TDHS Rules 1240-04-01
Tennessee child care subsidy FAQ
What subsidy program operates in Tennessee?
Tennessee's subsidy is the Smart Steps / Child Care Certificate Program, administered by TDHS. Income eligibility runs on a sliding scale, and families pay a copay set by their income. Only TDHS-licensed (or Department of Education-approved) care may be used.
Disclaimer: These figures summarize TDHS Rules Chapter 1240-04-01 for convenience; operators should confirm current requirements directly with the Tennessee Department of Human Services before making licensing decisions. This page is a summary for informational purposes only and is not legal or compliance advice. Confirm with Tennessee Department of Human Services, Child Care Services.