Texas Home Daycare License Cost: Every Fee From Application to Opening Day

The state fees for a Texas home daycare license are surprisingly low — $35 for a Registered or Licensed home application. But the application fee is a fraction of what it actually costs to open. Background checks, fingerprinting, training, insurance, and home safety modifications add up, and most guides either gloss over these or lump them into a vague "startup costs" range without itemizing what you are actually paying for.

Here is every fee and cost category, broken down by who you pay and when.

HHSC Application and Permit Fees

These are set by the state and published in the Child Care Regulation Handbook Section 5200:

For a Licensed home with 12-child capacity, the annual renewal is $47 ($35 base + $12). The application fee is non-refundable — if your application is denied, you do not get the application fee back.

Background Check Costs

Background checks are where costs multiply, because they apply to multiple people. The HHSC Centralized Background Check Unit (CBCU) requires screening for the primary caregiver, all employees, all volunteers, and every household member aged 14 or older.

Per person, expect:

The IdentoGO fee covers the Texas DPS fingerprint search, the FBI national fingerprint search, and the vendor processing fee. The exact total varies slightly depending on the service code assigned to your appointment.

Real-world example: A provider who lives with a spouse and has one child aged 15 needs three background checks — themselves, their spouse, and the teenager. That is $6 in HHSC fees plus $135–$180 in IdentoGO fees, for a total of $141–$186 just for background screenings.

If anyone in the household has lived outside Texas in the past five years, you also need out-of-state criminal, sex offender, and child abuse registry checks from each prior state of residence. Additional fees vary by state and are separate from the HHSC and IdentoGO charges.

Training Costs

HHSC requires 24 clock hours of pre-service training for Registered and Licensed home caregivers. Where you complete these hours determines the cost:

• HHSC Child Care Home Orientation: Free (online through the CCR portal or at a regional office)
• Pre-service training hours: Varies widely. ChildCareEd offers a pre-service bundle for roughly $192. Individual approved courses from other providers range from free (Texas A&M AgriLife Extension offers some at no cost) to $15–$30 per clock hour
• Pediatric CPR and First Aid certification: Typically $40–$80 through the American Red Cross, American Heart Association, or other approved providers

Budget $150–$300 for training costs, though providers who shop carefully for free or low-cost approved courses can bring this lower.

Insurance

Registered and Licensed homes must carry commercial general liability insurance with a minimum of $300,000 per occurrence. This is not your homeowner's insurance — standard homeowner's policies explicitly exclude commercial child care activities.

A commercial child care liability policy for a home daycare typically runs $400–$1,200 per year, depending on your capacity, location, and the specific coverage endorsements (professional liability, child abuse and molestation coverage, medical payments). Get quotes from specialty child care insurance brokers — they understand the HHSC requirements and can structure a policy that satisfies the state minimums.

If you cannot obtain coverage due to financial hardship or insurer unavailability, HHSC allows you to file a written parental notification form instead of carrying the policy. This is a legal option, but if you plan to join TWC's CCS program, confirm the current provider requirements with your local Workforce Solutions Board.

Home Safety Modifications

These costs are the hardest to predict because they depend on your home's current condition:

• Fencing: A 4-foot fence around outdoor play areas with self-closing, self-latching gates. If you already have a fenced yard, you may only need gate hardware. A new fence for a small backyard can run $1,500–$4,000
• Childproofing: Outlet covers, cabinet locks, door handle covers — typically $50–$150 for a full home
• Cribs (if serving infants): Compliant cribs with firm, flat mattresses. Budget $100–$300 per crib
• Fire safety: Smoke detectors, fire extinguisher, first-aid kit — $50–$100 if you need to buy them
• Indoor space adjustments: You need 30 square feet of usable play space per child, excluding kitchens, bathrooms, hallways, and storage. If your layout falls short, furniture removal or room repurposing may be needed

Business Formation

Filing an LLC through the Texas Secretary of State requires a filing fee; check the current fee schedule. A sole proprietorship is free to operate under your own name, but provides no personal asset protection. An EIN from the IRS is free.

Total Startup Cost Range

Pulling it together for a typical Registered home (6-child capacity, provider plus spouse and one teenager in the household):

The wide range is driven almost entirely by fencing and insurance. Providers with an already-fenced yard and a clean shopping approach to training can realistically launch under $1,000 in state and startup costs.

For a detailed cost-planning worksheet and a fee tracker that helps you log every expense as you go, the Texas Home Daycare License Guide includes templates designed specifically for the Texas licensing process.

See more Texas guides →