Rates vary significantly by state and county
Older children typically have higher rates
Higher needs require specialized training & support
May qualify for additional supplement (+30%)
Override base rate if you know your specific county rate
Select state, child age, and level of care to calculate foster care per diem reimbursement rates.
• Daily rates range from $6 to $43+ for basic care (2026)
• Specialized/therapeutic/medical care rates significantly higher
• USDA reimbursement gap shows cost-to-reimbursement ratio
• All 50 states + DC covered, rates vary widely
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Introduction
Foster care reimbursement rates in the United States vary by a factor of more than 3 to 1 depending on state, child age, and level of care. A basic care foster family in Mississippi may receive $11/day per child while a therapeutic foster home in California caring for a medically complex adolescent can receive $75 to $140/day. According to the Annie E. Casey Foundation, the national average basic foster care reimbursement covers approximately 60% of actual child-rearing costs, meaning most families subsidize placement out of pocket. For foster families evaluating whether they can financially sustain a placement, or for agencies budgeting caseload costs, knowing the per diem rate and monthly reimbursement is the starting point. This calculator helps foster families and agency financial staff determine expected monthly reimbursements based on state, age tier, level of care, and placement length, and project the gap between reimbursement and actual child-rearing costs using the USDA Cost of Raising a Child benchmarks.
What This Calculator Does
This calculator estimates monthly foster care reimbursement amounts based on state, child age group, and level of care designation (basic, moderate, specialized, therapeutic, or medically complex). It uses 2026 state rate data and calculates per diem, monthly, and annual reimbursement totals. The tool also estimates the gap between reimbursement and typical child-rearing costs using USDA expenditure benchmarks segmented by age and income bracket, helping families and agencies understand the realistic cost-to-reimbursement ratio for each placement type.
The Formula
Monthly reimbursement is calculated by multiplying the state's published daily per diem rate for the applicable age and level of care by the average number of days in a month (30.44). Annual figures use 365 days. The reimbursement gap is derived by comparing the monthly reimbursement to USDA estimates of actual child-rearing expenditures from the 'Cost of Raising a Child' report, adjusted for the child's age group and median-income household benchmark. USDA figures cover food, clothing, housing, transportation, health care, childcare, and education but exclude specialized therapeutic or medical expenses covered separately by Medicaid.
Step-by-Step Example
Select state and care level
Example: North Carolina, child age 6 to 12, specialized foster care (child with moderate behavioral needs). North Carolina 2026 basic rate for age 6 to 12: $24/day. Specialized care adds 50%: $24 + $12 = $36/day.
Calculate monthly and annual reimbursement
Monthly: $36 × 30.44 = $1,096/month. Annual: $36 × 365 = $13,140/year. Compare to basic rate at $24/day: $731/month and $8,760/year. The specialized designation adds $365/month.
Compare to USDA child-rearing cost estimate
USDA 2026 estimate for a child age 6 to 8 in a median-income household: approximately $1,100 to $1,250/month when housing cost share is included. Specialized reimbursement of $1,096/month covers 88% to 100% of that estimate, leaving $4 to $154/month in uncompensated costs.
Factor in additional benefits
Children in foster care qualify for Medicaid (covering health and dental costs not in the per diem), potential clothing allowances ($200 to $400/year in most states), activity allowances, and in some states a one-time placement startup stipend. Adding Medicaid value ($250 to $400/month in avoided costs) closes or eliminates the reimbursement gap for specialized care.
Real-World Use Cases
Foster Family Financial Planning Before Accepting Placement
A foster family in Ohio is offered a placement for a 14-year-old with a moderate behavioral level of care designation. Before accepting, they use the calculator to confirm the per diem ($25/day basic rate for age 13 to 18 in Ohio, plus 25% moderate care add-on = $31.25/day), monthly reimbursement ($951/month), and compare it against the USDA cost estimate for a teenager ($1,450/month). The gap is $499/month, which they determine is manageable given their income and Medicaid coverage for the child's therapy copays.
Agency Budget Projection for New Caseload
A county child welfare agency is projecting costs for 18 new foster placements in the coming fiscal year. The financial analyst uses the calculator to model reimbursement costs by age distribution and care level, producing a total annual reimbursement expenditure estimate of $198,000 across the caseload for budget justification to county commissioners.
Therapeutic Foster Care Program Development
A nonprofit developing a new therapeutic foster care program for children with significant trauma history needs to determine the viable per diem rate to pitch to the state. Using the calculator in reverse, they determine that covering true program costs (enhanced training, 24/7 support, additional respite) requires a minimum of $65/day per child, compared to the current state therapeutic rate of $48/day, and use the gap to frame their rate negotiation with the state agency.
Comparison
| Level of Care | Typical Daily Rate Range | Monthly Estimate | Medicaid Included? | Specialized Training Required? |
|---|---|---|---|---|
| Basic Foster Care | $6-$43/day | $183-$1,309 | Yes | Standard (30 hrs) |
| Moderate / Specialized | $25-$45/day | $761-$1,370 | Yes | Enhanced (60+ hrs) |
| Therapeutic Foster Care | $40-$90/day | $1,218-$2,740 | Yes | Specialized (100+ hrs) |
| Medically Complex | $75-$160/day | $2,283-$4,870 | Yes | Medical training req'd |
| Treatment Foster Care (TFC) | $50-$120/day | $1,522-$3,653 | Yes | Clinical supervision req'd |
Common Mistakes to Avoid
Treating the per diem as take-home income. Foster care reimbursements are generally not taxable income under IRS rules for payments made to care for a child placed by a state agency, but they are also not profit — they are intended to reimburse costs. Families who treat per diems as income and do not track actual expenditures often find themselves financially strained after several months.
Not requesting level-of-care reassessments. A child's needs often escalate after placement, but agencies do not automatically adjust per diem rates. Foster families who do not proactively request a level-of-care review when a child's needs change continue to receive a basic rate while providing specialized care.
Ignoring state-specific supplement programs. Many states offer supplemental payments beyond the base per diem: vehicle mileage for medical appointments, extraordinary medical expense reimbursement, clothing allowances, and birthday/holiday allowances. Failing to claim these leaves hundreds of dollars per year uncollected.
Not accounting for the placement gap cost. When a foster child leaves placement and the next child has not yet arrived, families still incur baseline fixed costs (bedroom maintenance, insurance, licensing upkeep) without reimbursement. Agencies and families who do not budget for typical vacancy periods of 30 to 90 days between placements underestimate annual costs.
Frequently Asked Questions
Is foster care reimbursement considered taxable income?
Generally no. IRS Publication 525 states that payments received from a state agency for the care of foster children placed in your home by a government placement agency are not included in gross income. However, this exclusion does not apply to reimbursements that exceed the actual cost of care, to private agency placements without state involvement, or to kinship care payments in some circumstances. Consult a tax professional for your specific situation.
Can foster parents also receive child support for the children in their care?
When a child has an active child support order, payments typically go to the state or county rather than directly to the foster family. The state may use collected child support to offset foster care costs, and some states pass through a portion to the foster family. When the child is in kinship foster care with a relative, rules vary significantly by state and placement type.
How are therapeutic foster care rates determined?
Therapeutic foster care rates are set through state rate-setting processes that typically consider the cost of enhanced training, required clinical supervision, 24/7 crisis support, lower caseload ratios for therapeutic families, and any contracted agency administrative costs. Rates are negotiated between the state child welfare agency and contracted TFC providers. Individual therapeutic foster families receive the contracted rate set by their licensing agency.
Do foster children qualify for additional benefits beyond the per diem?
Yes. Children in foster care qualify for full Medicaid coverage including dental and vision regardless of household income. They are also exempt from SNAP household income calculations in most states (their per diem does not count as household income for the foster family's SNAP eligibility). Many states provide Education and Training Vouchers (ETV) up to $5,000/year for youth aging out of foster care, and the federal John H. Chafee Foster Care Program provides independent living services.
Accuracy and Disclaimer
This calculator provides estimates of foster care reimbursement rates based on publicly available 2026 state rate data and USDA child-rearing cost benchmarks. Actual per diem rates are set by individual states and counties and vary by placement agency, child-specific circumstances, and contractual agreements. Reimbursement rates are subject to state legislative and budget changes. This tool is for planning purposes only. Contact your state or county child welfare agency or licensed foster care agency for official rate information applicable to your situation.
Conclusion
Foster care per diem rates are a starting point for financial planning, not a full picture of placement costs. Specialized and therapeutic care tiers come significantly closer to full cost coverage, but basic care families in many states absorb $400 to $800/month in uncompensated costs per child. After calculating your expected per diem reimbursement, use the Child Support Guideline Calculator if the child has an active support order payable to the agency, and the Benefits Cliff Analyzer to understand how foster reimbursement income interacts with other household benefit thresholds.
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