Nanny vs Daycare vs Home-Based Care: Cost Comparison NZ (2026)

Three types of paid childcare dominate in New Zealand: daycare centres, home-based care, and private nannies. Each has a different cost structure, different subsidy eligibility, and different trade-offs around flexibility, socialisation, and convenience. This guide breaks down what you'll actually pay for each option in 2026, after accounting for 20 Hours ECE, FamilyBoost, and WINZ subsidies.

We're using 2025-2026 figures throughout, based on data from across 4,394+ providers on The Parent Circle and current government rates. Your actual costs will depend on your region, your child's age, and how many hours you need.

Before subsidies or tax rebates, here's what you're looking at for full-time care (40 hours per week) in 2026. These are national averages — Auckland and Queenstown tend to run 5-15% higher, while smaller centres in regions like Southland or Gisborne can be noticeably cheaper.

About 70% of NZ children in ECE attend a centre-based service. There are roughly 4,800 licensed centres nationwide — everything from large chains like BestStart and Lollipops to small community-run operations. Centres are regulated by the Ministry of Education with strict adult-to-child ratios: 1:3 for under-2s, 1:5 for two-year-olds, and 1:10 for children aged three and over.

Most centres charge between $250 and $400 per week for full-time care. Under-2 fees run 20-30% higher than over-3 fees because of the tighter ratios and the extra staffing that requires. Large chains publish their rates online — BestStart, for example, charges around $350-$400 per week for infants in Auckland, dropping to $280-$320 for three-year-olds.

Centres benefit from the full stack of government support. If your child is three or four, 20 Hours ECE covers up to 20 hours per week of teacher-led ECE at no charge (though centres can still charge "optional" fees for food, resources, and extra hours). For the remaining fees, FamilyBoost gives you back 40% up to $120 per week — and if your household income qualifies, WINZ Childcare Subsidy can cover a further portion.

The downsides: rigid hours (typically 7am-6pm, Monday to Friday), closure during public holidays, and the illness merry-go-round. Young children in group care pick up bugs frequently — expect a rough first winter. Late pickup fees of $1-$2 per minute are standard. And for under-2s, you're paying premium rates without any 20 Hours ECE offset.

Home-based care sits between daycare and a nanny. An educator looks after a small group of children (maximum four, including their own under-6s) in the educator's own home. They work through licensed networks — around 500 across NZ — with a visiting coordinator who checks in regularly, plans curriculum, and ensures the service meets MOE licensing standards.

Fees are typically 10-15% less than centres: $200-$320 per week for full-time care, depending on the child's age and region. The smaller group size means your child gets more individual attention than in a 30-child daycare room, but the educator is still looking after several children, keeping costs per family manageable.

Licensed home-based networks qualify for the same government funding as centres. That means 20 Hours ECE (for three- and four-year-olds), FamilyBoost, and WINZ Childcare Subsidy all apply. Some parents don't realise this — they assume "home-based" means informal and unfunded. It doesn't. If the network is licensed by MOE, you get the same financial support as a centre.

The trade-offs: if your educator gets sick, you may have no backup (some networks arrange cover, others don't). There's less structured programming than a centre with dedicated learning spaces. And availability can be patchy — in high-demand areas like central Auckland, finding a home-based spot can be just as hard as getting into a daycare centre.

A nanny works in your home, on your schedule. That flexibility comes at a price — $25-$35 per hour in 2026, depending on experience, qualifications, and location. For 40 hours a week, that's $1,000-$1,400 before you factor in employer costs.

A nanny is your employee. That means legal obligations beyond their hourly rate. You must deduct and pay PAYE tax, cover ACC levies, provide at least four weeks' annual leave (or 8% loading), 10 days' sick leave after six months, and contribute to KiwiSaver if they're enrolled. The minimum wage is $23.50 per hour as of 2025.

This is where nannies lose out. Private nannies are not licensed ECE providers, so 20 Hours ECE does not apply. FamilyBoost only covers fees paid to licensed ECE services — a private nanny doesn't qualify. WINZ Childcare Subsidy can apply if the nanny is an approved carer, but the process is more complex and rates are lower than for licensed services.

An au pair is a cheaper alternative at around $220 per week (pocket money), but they're limited to 30 hours per week under Working Holiday visa rules, and they're not subject to minimum wage because it's classified as a cultural exchange. Au pairs work best as supplementary care, not a full-time replacement for daycare or a nanny.

The subsidy gap is dramatic. A family with a three-year-old in a $300/week centre could pay as little as $50-$80 after stacking 20 Hours ECE, FamilyBoost, and WINZ. The same family with a nanny at $1,200/week might get a small WINZ offset but is still paying over $1,000 out of pocket. For under-2s, the gap is smaller because 20 Hours ECE doesn't apply to anyone — but FamilyBoost still favours licensed services.

Numbers only make sense in context. Here are three common family situations and how the costs compare.

No 20 Hours ECE at this age. The choice comes down to daycare ($280-$350/week), home-based ($240-$320/week), or nanny ($1,120-$1,400/week). After FamilyBoost (40% of fees at a licensed service, up to $120/week) and any WINZ subsidy, daycare and home-based costs can drop to $150-$250 per week. A nanny stays north of $1,000. For one child, centre or home-based care wins on cost alone.

20 Hours ECE wipes out a large chunk of centre or home-based fees. A $300/week daycare bill drops to roughly $120 after the 20-hour funding. FamilyBoost takes another $48 off. WINZ could reduce it further. You might pay $50-$80 per week. A nanny at $1,000-$1,280 per week gets none of that funding. The cost difference is roughly 15:1.

This is where it gets interesting. Two daycare spots: ~$330/week (infant) + ~$120/week after 20 Hours ECE (3-year-old) = ~$450/week before FamilyBoost. After subsidies, maybe $250-$350 per week total. A nanny at $30/hour for 40 hours = $1,200/week, no subsidies, plus employer costs. Daycare still wins on raw numbers, but the nanny covers holidays, sick days, and mornings before 7am. Some families split the difference: daycare for the 3-year-old (to get 20 Hours ECE) and a nanny for the infant.

Cost is the loudest factor in this decision, but it's not the only one. Here's what parents consistently flag when comparing these options.

There's no universally right answer. But some patterns hold.

The right childcare type depends on your family's mix of budget, schedule, and priorities. Start by comparing providers in your area using The Parent Circle, then run the numbers with our cost estimator to see what each option looks like after subsidies. For a broader view of what childcare costs across NZ, check our complete 2026 cost guide.