Tennessee Daycare Licensing

Tennessee requires a license from the Department of Human Services for anyone providing care to five or more unrelated children for at least three hours per day. Operating above that threshold without a license is a misdemeanor under T.C.A. § 71-3-501, and TDHS can order immediate closure.

If you care for four or fewer unrelated children, or operate for less than three hours daily, you are license-exempt. No state paperwork, no inspections — but also no eligibility for CCAP subsidy payments or CACFP meal reimbursement.

Two Types of Home-Based Licenses

TDHS issues two categories of home-based child care licenses. The one you need depends on how many children you plan to serve.

Family Child Care Home — 5 to 7 unrelated children, with a total capacity of up to 12 including the operator's own children under age 9. One caregiver can manage up to 7 unrelated children as long as no more than 4 are under age 2. If related children bring the total above 7, 2 educators are required when no more than 4 are under age 2, and 3 when 5 or more are under age 2. For 7 or fewer children, 5 or more children under 2 requires a second caregiver at all times.

Group Child Care Home — 8 to 12 children, with up to 3 additional school-age children allowed during before/after school hours and summer breaks (total cap of 15). Staffing requirements scale with the age mix: a single educator is permitted only if all children are age 3 or older.

The distinction matters beyond headcount. Under the 2025 zoning preemption law (HB 1175/SB 1379), family child care homes in occupied residential dwellings are classified as standard residential properties for zoning purposes — local governments cannot impose special use permits, restrictive zoning variances, or extra sanitation codes. Group homes do not receive this blanket protection and remain subject to local zoning review.

The TDHS 10-Step Process

The Pre-Licensure Unit manages a structured 10-step workflow. Each step must be completed before the next unlocks.

1. Contact the Pre-Licensure Unit at [email protected] or (615) 906-0517
2. Receive intake instructions from your assigned Program Specialist
3. Register on the TN eLicensing portal
4. Complete the 8-hour virtual Orientation — held monthly; your pre-application unlocks after attendance is verified
5. Complete the 2-day Small Business Academy through the CCR&R Network
6. Submit your application in the eLicensing portal with staffing plans and physical layout data
7. Measuring visit and inspections — the Specialist visits your home, then triggers a State Fire Marshal inspection, Environmental Health inspection, and Choose Safe Places screening. You also need a zoning clearance letter from your municipality.
8. Pay the licensing fee — $100 to $200 depending on provider class and license term
9. First licensing walk-through — detailed compliance inspection of your home, equipment, and personnel files
10. Joint final walk-through — the Specialist, a Licensing Consultant, and a Field Supervisor inspect together and recommend a provisional license

Provisional license approval typically comes 5 to 10 business days after the joint walk-through. You can begin operating immediately.

Key Requirements at a Glance

Space: 30 square feet of usable indoor play space per child (excluding kitchens, bathrooms, hallways, and area occupied by cribs). 50 square feet of fenced outdoor space per child using the yard at one time.

Background checks: Every operator, employee, substitute, and household resident aged 15+ must clear fingerprint screening through IdentoGo — FBI, TBI, National Sex Offender Registry, Tennessee Sexual Offender Registry, and the DCS child abuse registry. Repeated every five years. TDHS covers the cost of one screening per person per year.

Training: 8-hour Orientation plus 2-day Small Business Academy before licensing. Then primary educators complete 18 clock hours of approved training per year through TrainTN or other approved providers.

Insurance: General liability and sexual abuse and molestation coverage; if you transport children, automobile liability and medical payment coverage.

Fire safety: Since April 2025, family homes follow Appendix AM of the 2021 International Residential Code rather than commercial fire standards. You still need functioning smoke alarms on every level, carbon monoxide detectors within 10 feet of sleeping areas, and a fire extinguisher in the kitchen.

The Tennessee Home Daycare Licensing Guide walks through every requirement in plain language, with worksheets for the space calculation, background check tracking, and a timeline planner that maps each step to calendar weeks.

See more Tennessee guides →