Should You Charge for Holidays in Your Home Daycare?

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Home daycare providers, should you charge for holidays? Learn why paid closures are reasonable, how to set your policy, and what to put in your contract in your home daycare.

One of the hardest decisions for a new home daycare provider is whether families should pay when the daycare is closed for a holiday. You may worry that parents will think it is unfair to pay for a day their child does not attend. You may also feel guilty asking for paid time off when you work from home.

But home daycare is still a real business, and the provider deserves a stable income and reasonable time to rest. In most cases, yes—you should charge for a reasonable number of clearly stated holidays in your home daycare.

Parents are not only paying for the hours their child is physically inside your home. They are paying tuition to reserve one of a very limited number of childcare spaces. Your mortgage, insurance, licensing expenses, training, equipment, taxes, and other business costs do not disappear because your program closes for Christmas Day or Thanksgiving.

The key is to create a holiday policy that is clear, consistent, reasonable, and shared with families before enrollment.

Yes, Home Daycare Providers Should Receive Paid Holidays

Home daycare providers work long hours and carry an enormous amount of responsibility. In addition to caring for children, providers plan activities, prepare food, clean and sanitize, maintain records, communicate with parents, complete training, shop for supplies, and keep the program in compliance with licensing requirements.

Unlike many employees, self-employed childcare providers do not automatically receive paid holidays, vacation time, sick leave, health insurance, retirement contributions, or overtime. If you want paid time off, it must be built into your tuition and policies.

Closing for a few major holidays without losing income is not unreasonable. It is one part of setting a sustainable tuition rate and preventing burnout.

Daycare Tuition Reserves a Child’s Space

The easiest way to explain holiday pay is that families pay for enrollment, not attendance.

A licensed home daycare can only care for a limited number of children. Once you reserve a space for one family, you cannot sell that same space to someone else on a day the enrolled child is absent. The family’s tuition protects their place in your program from week to week.

This is similar to private school tuition, a gym membership, rent, or many other recurring expenses. The cost does not change every time the customer is unable to use the service or the business closes for a scheduled day.

If families pay only for the exact hours their children attend, the provider absorbs the financial impact of every holiday, family vacation, illness, late arrival, early pickup, and unexpected absence. That can make a small childcare business impossible to budget and maintain.

Why Paid Holidays Matter in a Home Daycare

Your Business Expenses Continue

Most home daycare expenses are not calculated one open day at a time. You still have insurance, housing costs, utilities, licensing fees, training expenses, curriculum supplies, toys, furniture, repairs, and taxes.

One unpaid day may not sound significant, but several unpaid holidays combined with vacations, illnesses, and family absences can remove weeks of income from an already narrow profit margin.

Providers Need Rest

Home daycare is physically, mentally, and emotionally demanding. You cannot step away for a quiet lunch, run an errand during the workday, or schedule appointments easily. Many providers work ten to twelve hours with children and then complete cleaning, paperwork, and preparation after closing.

Rested providers are more patient, attentive, creative, and able to give children the care they deserve. Planned holidays allow providers to spend time with their own families and return to work refreshed.

Stable Tuition Makes Budgeting Easier for Everyone

A flat weekly or monthly tuition amount allows both the provider and the parents to know what childcare will cost. Families do not receive a different invoice every week, and the provider does not have to calculate credits for every absence or closure.

Predictable billing reduces misunderstandings and keeps the business relationship from becoming a constant discussion about individual days.

And speaking of billing, using software such as brightwheel that invoices parents and takes tuition collection off your plate is a huge time and stress saver. I highly recommend using it.

A Sustainable Daycare Benefits Families

Families need dependable childcare, but dependable care is only possible when the business is financially and personally sustainable. A provider who never takes time off or cannot afford ordinary closures is more likely to burn out, become ill, or close the program completely.

Reasonable paid time off helps experienced caregivers remain in the profession.

Which Holidays Should a Home Daycare Close?

There is no single list that works for every program. Choose holidays that matter to your family and community and publish the schedule in advance.

Common paid daycare holidays include:

• New Year’s Day
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving Day
• The Friday after Thanksgiving
• Christmas Eve
• Christmas Day

Some programs also close for Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Juneteenth, Veterans Day, New Year’s Eve, or additional days around Christmas.

You do not need to close for every federal holiday. Select a reasonable number that fits your family traditions, enrollment needs, and local market. If you know attendance will be extremely low on a certain day, it may make more sense to close than to open for one child while your own family celebrates without you.

I love doing all but 2 or 3 federal holidays. Most parents are off for all of them, and I love giving them a few times a year for me time or day dates or special older sibling days. It’s up to you how you do it. If you need them all, take them all!

Should the Daycare Charge When a Holiday Falls on a Weekend?

Decide in advance whether you will observe a holiday on the weekday recognized by employers, schools, or government offices. For example, when Christmas Day falls on Sunday, you might close on Monday.

Your contract should state whether holidays are observed on the preceding Friday or following Monday. Do not wait until the week before the holiday to announce the closure.

Example:

When a listed holiday falls on Saturday, the daycare may observe it on Friday. When it falls on Sunday, the daycare may observe it on Monday. The annual calendar will identify the observed closure date.

Publishing the actual dates at the beginning of each year prevents confusion. I give out my days off and special family days on a calendar for the whole year just like schools do. People know what holidays I’m closed for, what vacation days I have, and when our Easter, Gingerbread, and Mom celebrations are from day one. It works great for me.

Should Part-Time Families Pay for Holidays?

Part-time care becomes complicated when families pay only for specific days. If a family attends every Monday and several paid holidays fall on Mondays, they may feel they are paying for more closures than a child who attends Tuesday through Thursday.

You have several fair options:

Charge a Flat Weekly Tuition

Families pay the same weekly tuition to reserve their normal schedule, regardless of holidays or absences. This is the simplest policy to administer.

Charge a Flat Monthly Tuition

Calculate the annual cost of care, including planned closures, and divide it into twelve equal payments. Monthly tuition feels consistent because families pay for annual enrollment rather than counting individual days.

Build Holiday Pay Into the Daily Rate

If you prefer not to bill for closed days, calculate the annual income you need and divide it across the days you will actually be open. The open-day rate will be higher, but the provider still receives the annual income needed to operate.

Use a Limited Number of Paid Holidays

You could charge part-time families for holidays only when the closure falls on one of their regularly contracted days. This is easy to understand but can produce uneven results from year to year.

Whichever method you choose, use it consistently. Avoid negotiating separate holiday arrangements with every family unless those differences are part of clearly defined enrollment plans.

What If Parents Say They Should Not Pay When Daycare Is Closed?

Parents may have a strong emotional reaction because a closure can create two expenses: regular daycare tuition and the cost of backup care. That concern is understandable, especially for families who do not receive paid holidays themselves.

You can respect their challenge without giving up the policies your business needs.

Explain that:

• Tuition reserves the child’s ongoing space.
• Paid closures are included in the cost of enrollment.
• The holidays are disclosed before enrollment.
• Families receive the annual closure calendar in advance.
• The policy allows the daycare to maintain stable staffing, supplies, and operations.
• Parents are responsible for arranging backup care during scheduled closures.

Do not argue that parents “get paid for holidays,” because many do not. Do not compare hardships. Simply explain how your tuition structure works and allow families to decide whether the program fits their needs. It’s okay if they don’t choose your care because of this. If you run a quality program, there are plenty of people who will want the spot.

Are Paid Daycare Holidays Legal?

Home daycare providers can generally set their own tuition and closure policies, subject to their contracts, subsidy agreements, licensing rules, consumer laws, and any other requirements that apply in their location.

The most important protections are clarity and consistency. The written agreement should identify paid holidays, explain how observed dates work, and state whether tuition changes during closure weeks.

Rules for childcare subsidies may be different from rules for private-pay families. Some subsidy programs limit which absent or closed days can be billed. Never charge a subsidy program for a day that its rules do not allow, and do not assume the parent must automatically pay the difference. Review your provider agreement or contact the agency for guidance. At this time in Oklahoma, you cannot charge subsidy parents the difference, so you just lose out on income.

This article provides general business information, not legal or tax advice. Ask a licensing worker or subsidy representative about requirements that apply to your specific program.

Can Parents Claim Daycare Expenses for Paid Holidays?

Tax rules depend on each family’s situation. Current IRS guidance for the child and dependent care credit says that parents do not necessarily have to separate expenses for a short, temporary absence from work, such as a vacation or minor illness, when they must pay for care anyway. However, providers should never promise that a specific payment will qualify for a tax credit.

Give families an accurate year-end statement showing the total amount they actually paid, along with the provider identification information required for tax reporting. Parents should ask their own tax professional whether their expenses qualify.

How Many Paid Holidays Are Reasonable?

There is no magic number. A reasonable policy depends on your tuition rate, total paid time off, local competition, and how much notice families receive.

Look at your full annual calendar, not holidays in isolation. A provider with six paid holidays and no paid vacation has a different plan from a provider with twelve paid holidays, two weeks of vacation, five personal days, and unlimited paid weather closures.

Your policy should support your health and business without creating so many closures that families cannot rely on the program. Research what other professional childcare programs in your area include, calculate the income your business needs, and choose a plan you can maintain.

When I was young, I took off for New Year’s Day, Memorial Day, 4th of July, Labor Day, Thanksgiving Day, and Christmas Day. I took no vacation days, and I was TIRED. Over the years, I have increased my time off. A person working another job for over 30 years would have more time off accrued. In addition, I am just physically and mentally less strong now that I’m older, and I need more time off.

I take New Year’s Day, Presidents’ Day, Memorial Day, 4th of July, Labor Day, Veterans Day, Thanksgiving Day and the day after, Christmas Eve, and Christmas Day, as well as about 25 vacation days per year, all paid. I take one week off on Spring break and one week off in October. And no one complains. They appreciate the work I put in. But it’s taken me a long time to get there. In the early days, things were a lot harder.

Paid Holidays vs. Paid Vacation Days

Holidays and vacation days should be listed separately in your contract.

Paid holidays occur on specific, predictable dates. Vacation days are selected by the provider and may change each year. Families generally find holidays easier to plan around because they often coincide with school, employer, or government closures.

Your contract should state:

• Which holidays are paid closures
• Whether observed holidays are included
• How much notice is given for provider vacation
• How many paid vacation or personal days the provider receives
• What happens during an extended provider illness
• Whether tuition is credited after paid time off is exhausted

Keeping these categories separate makes the policy easier to understand.

Should You Charge for Unexpected Closures?

Unexpected closures are different from planned holidays. Weather emergencies, power outages, contagious illness, family emergencies, or conditions that make the home unsafe may force the daycare to close.

Decide how each kind of closure will be handled before it happens. Some providers include a limited number of paid emergency days. Others charge for weather closures but credit tuition when the provider closes for personal reasons.

There is no universally correct answer, but the contract should be specific. A vague statement such as “tuition is always due” may lead to conflict during a long or unusual closure.

Consider addressing:

• Weather closures
• Utility outages
• Provider illness
• Provider family emergencies
• Government-mandated closures
• Public-health emergencies
• Damage that makes the home temporarily unusable

Include reasonable limits and explain what happens if a closure lasts longer than expected.

When school is called for inclement weather, I remain open for those who do have to work. If there is a power/water outage, flood, or some other reason why providing care is not possible, I close, and parents pay for that.

How to Add Paid Holidays to Your Daycare Contract

List the policy in both your contract and parent handbook. The contract establishes the financial agreement, while the handbook can explain the details.

Include:

1. The names of all paid holidays
2. The observed-day rule for weekend holidays
3. A statement that regular tuition remains due
4. A statement that parents arrange backup care
5. The date families receive the annual calendar
6. How new holidays or policy changes will be announced
7. How the policy applies to part-time enrollment

Ask parents to sign the updated agreement before the new policy begins. Do not quietly add paid closures after a family has already enrolled under different terms.

Sample Paid Holiday Policy for Home Daycare

Paid Holiday Closures

The daycare will be closed on the holidays listed below. These are paid closures, and regular tuition remains due. Tuition reserves your child’s space in the program and is not based on attendance. When a listed holiday falls on a weekend, the daycare may observe the holiday on the preceding Friday or following Monday, as shown on the annual calendar. Families are responsible for arranging backup care during all scheduled closures.

Paid holidays: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the Friday after Thanksgiving, Christmas Eve, and Christmas Day.

The daycare will provide the annual holiday calendar in advance. Holiday tuition will not be credited, refunded, or exchanged for another day.

Adjust the list and wording to match your actual program. Have a qualified local professional review your contract if you have legal questions.

How to Tell Current Daycare Families About a New Holiday Policy

If you have never charged for holidays, introduce the change professionally and give plenty of notice. Avoid apologizing so much that the policy sounds optional.

Explain that the new tuition structure allows you to maintain reliable care, cover continuing business expenses, and take a reasonable number of scheduled days with your family.

Sample announcement:

Beginning January 1, the daycare will include eight paid holiday closures in the annual tuition schedule. Regular tuition will remain due during these weeks. The complete list of dates is attached so your family has time to plan for backup care. This change allows me to maintain a stable, sustainable program while taking a small number of planned days to rest and spend with my family. Please review and sign the updated agreement by December 1.

Give families time to ask questions. If the change is substantial, consider introducing it at contract renewal rather than in the middle of an agreement.

What If a Parent Refuses to Pay for Holidays?

Start by reviewing the signed contract. If the policy is written clearly and the parent agreed to it, remind them that tuition is due according to the enrollment agreement.

Do not repeatedly debate the value of your time. Follow the same late-payment and termination procedures you would use for any unpaid tuition.

If the policy was never included in the agreement, the parent may reasonably believe the charge was not part of the arrangement. Correct the contract for the future rather than attempting to enforce a rule that was never disclosed.

Sometimes a family and a daycare are simply not a good business match. A parent may need a program open on particular holidays, while the provider needs those days with family. It is better to identify that mismatch before enrollment.

Ways to Make Paid Holidays Easier for Families

You can maintain a firm policy while helping families plan.

• Publish the full holiday calendar at the beginning of the year.
• Remind families several weeks before each closure.
• Keep observed dates consistent.
• Avoid adding surprise holidays.
• Coordinate provider vacation with naturally lower-attendance periods when possible.
• Give new families the closure calendar before they pay a deposit.
• Encourage parents to create a backup-care plan before they need it.
• Keep the total tuition structure easy to understand.

Do not promise to arrange backup care unless you truly want that responsibility and have a reliable, legally compliant option.

Alternatives to Charging Directly for Holidays

If the phrase “paid holiday” creates tension in your market, you can structure tuition differently without reducing the annual income your business needs.

Annual Tuition Divided Into Equal Payments

Calculate the full cost of the childcare space for the year, subtract all planned closure days, and divide the result into equal weekly or monthly payments. Families are paying annual tuition in installments, so no single payment is attached to a specific closed day.

Higher Open-Day Rates

Set a daily rate high enough to cover your required annual income, including unpaid closure days. This can work for drop-in or flexible care, but income may be less predictable.

A Separate Annual Enrollment Fee

Some providers use an annual fee to cover administrative costs, professional development, or planned closures. The purpose and refund policy should be clearly explained.

The label matters less than the math. Your rates must cover expenses, taxes, unpaid administrative work, time off, and a reasonable income.

Frequently Asked Questions About Charging for Daycare Holidays

Do most home daycares charge for holidays?

Policies vary, but paid holidays are common in professional childcare programs. What matters most is that the provider clearly discloses the policy before enrollment and uses it consistently.

Is it unfair to charge when the daycare is closed?

It is not unfair when paid closures are reasonable, included in the agreed tuition structure, and communicated in advance. Parents are paying to maintain an ongoing childcare space, not purchasing individual hours after they are used.

Should parents pay if they do not receive holiday pay at work?

A parent’s employment benefits and the daycare’s tuition policy are separate matters. Acknowledge that closures may be difficult, but do not base your business income on each client’s workplace benefits.

Should I charge for Christmas break?

You can include Christmas Eve, Christmas Day, or a longer winter break as paid closures. A full week or two of paid closure should be explained clearly and considered as part of your total annual paid time off.

Should I charge when a child misses daycare for a family holiday?

If tuition reserves the space, regular tuition remains due when a family keeps the child home. Otherwise, providers could lose income whenever families travel or extend a holiday weekend.

Can I charge some families for holidays but not others?

Different enrollment agreements may have different rates or terms, but inconsistent policies can create confusion and resentment. Standardize your policies whenever possible and honor existing contracts until they are properly updated.

Should drop-in families pay for holidays?

Drop-in care is usually billed only when a space is booked and care is available. A holiday fee would generally apply only if the family reserved the day under a clearly stated nonrefundable booking policy.

What if I decide to stay open on a paid holiday?

If you voluntarily open, decide whether regular tuition covers care or whether a separate holiday rate applies. Put any holiday-care option in writing and confirm attendance in advance.

Home daycare providers should not have to choose between celebrating a few important holidays and paying their bills. Paid holidays are a reasonable part of a professional childcare tuition plan when they are limited, disclosed, and written into the contract.

Decide which days truly matter to you. Calculate what your business needs to remain sustainable. Give families the complete calendar before they enroll, and apply the policy consistently.

Your daycare is valuable because you provide dependable, loving care throughout the year. Taking a reasonable number of planned paid holidays does not make you less dedicated. It helps you continue doing the work well.