Child Care Subsidies & Assistance in Tennessee

Tennessee's Smart Steps covers families up to 85% SMI but a waitlist resumed August 2025; a 5% flat copay took effect October 2025. A Smart Steps Plus tier (86–100% SMI) is live; the Promising Futures Act expands to ~150% SMI Jan 2027. No state CDCC.

Data current as of June 17, 2026

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Child care subsidy (CCDF) in Tennessee

Program name: Smart Steps Child Care Payment Assistance
Administered by: Tennessee Department of Human Services (TDHS)
Income ceiling: Up to 85% State Median Income at initial application (~$87,324/year for a family of four per the FFY 2026 SMI schedule effective October 1, 2025). Smart Steps Plus covers families between 86% and 100% SMI (~$102,732/year for a family of four) at redetermination only, per the TDHS Income Eligibility & Co-Pay Chart effective October 1, 2025.
Family fee / copay: Flat 5% of gross income, effective October 1, 2025 (the prior under-150% FPL zero-copay waiver was eliminated). Copay is divided proportionally across children in care. Waived for Families First/TANF, Early Head Start partnership, mental-health/substance-abuse services, and DCS referrals. State copay cap: 5% of family income.
Waitlist status: Recently re-opened — Waitlist activated August 26, 2025 after the end of pandemic-era CCDF stabilization and a ~$44.5M reduction in Tennessee's federal CCDF discretionary award. Currently enrolled families continue through their 12-month eligibility period.
Apply: www.tn.gov/humanservices/for-families/child-care-services/child-care-payment-assistance.html

Income limits by family size

Family size	Initial eligibility ceiling (annual, 85% SMI)	Smart Steps Plus ceiling at redetermination (annual, 100% SMI)
2	$59,376	$69,852
3	$73,344	$86,292
4	$87,324	$102,732
5	$101,292	$119,172
6	$115,260	$135,600
7	$117,888	$138,684
8	$120,504	$141,768

Initial eligibility ceiling (annual, 85% SMI): Upper bound of the 85th Percentile (SMI) monthly income band, annualized (×12). Maximum income for new Smart Steps applicants per TDHS schedule effective October 1, 2025. An active waitlist applies to most new applicants.
Smart Steps Plus ceiling at redetermination (annual, 100% SMI): Upper bound of the 100th Percentile (SMI) monthly income band, annualized (×12). Smart Steps Plus is available only at redetermination for existing recipients whose income is between 86% and 100% SMI, per the TDHS chart effective October 1, 2025. Copay is 5% of gross income.

TDHS Tennessee Child Care Certificate Program — Income Eligibility Limits and Parent Co-Pay Fees, effective October 1, 2025. Based on FFY 2026 100% SMI Estimates issued by the National Center on Subsidy Innovation and Accountability. The chart publishes monthly income ranges by household size; all values here are annualized (×12). Column 1 (85% SMI initial ceiling) is the upper bound of the '85th Percentile (SMI)' column — the maximum monthly income for Smart Steps eligibility. Column 2 (100% SMI Smart Steps Plus ceiling) is the upper bound of the '100th Percentile (SMI)' column — available only at redetermination for families already receiving Smart Steps. This 86–100% SMI tier was added administratively by TDHS effective October 1, 2025. No family-of-1 row published. Effective October 1, 2025; check the state portal for the latest figures.

Priority groups (served first)

Families First / TANF participants
SNAP Employment & Training participants
Transitional Child Care
At-Risk Child Only cases
Teen Parent Child Care
DCS referrals (foster care, adoption assistance, non-state custody)

State pre-K in Tennessee

Program name: Tennessee Voluntary Pre-K (VPK)
Administered by: Tennessee Department of Education (TDOE); delivered through local school districts
Access: Income-targeted
Eligibility: Primary group: 4-year-olds in families at or below 185% of the federal poverty level. Priority also for children with disabilities, English learners, children in foster care, and children experiencing homelessness (income-blind for these categories).
Coverage: TN VPK meets 9 of 10 NIEER quality benchmarks. More than 75% of Tennessee districts maintain VPK waitlists. 2024-25 per-classroom funding: $121,700.
Apply: www.tn.gov/education/districts/early-learning/voluntary-pre-k.html

State tax credits & extras in Tennessee

State CDCC: Tennessee does not offer a state Child and Dependent Care Credit. Tennessee has no personal income tax (the Hall Income Tax was fully repealed in 2021). The federal CDCC (claimed on IRS Form 2441) is the only income-tax-based child care credit Tennessee families can use.

Other state programs and credits

Smart Steps Plus expansion (Promising Futures Act, signed May 19, 2026)
The Promising Futures Act authorizes expanding Smart Steps Plus into a sliding-scale scholarship for working families up to about 150% State Median Income — the cliff the current 86–100% SMI redetermination tier still leaves uncovered. Substantive provisions take effect on a later date (companion HB 1979 lists January 1, 2027). Funded by hemp-derived cannabinoid and vapor product tax revenues directed into a dedicated child care fund; those revenues still need to materialize. Companion programs include CareShare Tennessee (employer/employee/state shared contributions) and a Child Care Workforce Scholarship Pilot.

Where to apply or get help in Tennessee

Find a daycare in Tennessee

Once you know what you qualify for, Childery's directory helps you pick a provider. Browse Tennessee's licensed daycares with independent Process and Structural quality ratings, or search by ZIP code or city.

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Sources

Every state layers its own program on top of a federal floor — CCDF (the federal block grant), Head Start, the federal DCFSA (employer pre-tax benefit), and the federal Child and Dependent Care Credit. See the federal overview for what the floor looks like before any state adds.