Arizona Home Daycare License: Rules for Babysitting and In-Home Child Care Side Hustles

TL;DR

• The line is five children. ADHS says you can care for up to four children for compensation in your own home, in addition to your own children, without being certified by ADHS. Regular paid care for five or more children in your home requires ADHS certification. (ADHS, Starting a Child Care Group Home; ADHS Substantive Policy Statement SP-023-PHL-CCL.)
• Five to ten kids = child care group home. Arizona defines a child care group home as a residence where child care is regularly provided for compensation for 5 to 10 children through age 12. It must be certified by ADHS. (A.R.S. §§ 36-897, 36-897.01.) More than 10 children means a licensed child care facility. (A.R.S. § 36-882; SP-023.)
• DES certification is a separate, optional path for up to four kids. DES certifies family child care homes to care for up to four children for compensation (and up to six total in some cases, with no more than two under age 1 unless they're siblings). (DES; Ariz. Admin. Code R6-5-5220.) Certified providers can serve families paying with DES child care assistance. (Arizona CCR&R.)
• Occasional babysitting isn't "regular." ADHS says someone who occasionally cares for children at a parent's request isn't caring for them "regularly" and doesn't need certification; a set daily or weekly schedule is regular. Babysitting in the child's own home is exempt from group-home certification. (SP-023; A.R.S. § 36-897.04.)
• Fingerprint clearance cards are standard. ADHS requires a valid level one card for the group home applicant, staff, and adult household members; DES requires one for the provider and every household member 18 or older. The DPS fee is currently $67, and a card is valid for six years. (ADHS; DES; Arizona DPS.)
• Group home fee: confirm before you budget. ADHS's application guide lists $330 for a 5–10 capacity home, while the published fee rule lists $1,000 per three-year cycle, discountable for homes in an approved program. (ADHS guide; Ariz. Admin. Code R9-3-203.)
• Zoning still applies. Phoenix permits a dependent care facility for up to six dependents in residential zones with conditions and requires a use permit for 7–12. Tucson permits Home Occupation: Day Care in most residential zones with PDSD approval. (Phoenix Zoning Ordinance § 608; Tucson UDC § 4.9.7.)
• Taxes: child care income is self-employment income. If your net earnings are $400 or more, you owe self-employment tax, and the IRS has a special daycare exception for the home-office deduction. (IRS.)

Who this guide is for

You want to earn money watching other people's kids: after-school care for a few neighbors, a regular weekday spot for a friend's toddler, or a small home daycare you build into a real business. This guide explains where Arizona draws the lines between babysitting, a DES certified family child care home, an ADHS certified child care group home, and a licensed child care center, and what each one takes.

If you want to tutor or teach lessons instead, the rules are different. Arizona's child care laws exempt facilities that only teach specific subjects such as music, dance, or drama. (A.R.S. §§ 36-884, 36-897.04.) See the tutoring notes in Best Side Hustles in Phoenix.

The four paths at a glance

How many kids can you babysit without a license in Arizona?

ADHS answers this directly in its group home guide: you can care for up to four (4) children for compensation in your own home, in addition to your own children, without being certified by ADHS. If you provide care for five or more children in your home for compensation, your home must be certified. (ADHS, Starting a Child Care Group Home.)

ADHS's substantive policy statement on group homes explains how it counts. Its four tests are whether care is provided regularly, for compensation, for less than 24 hours a day, and for 5 to 10 children through age 12 who aren't the provider's own. (SP-023-PHL-CCL.)

• "Regularly" means at recurring, fixed, or uniform intervals. Occasional care at a parent's request isn't regular; care every day or every week on a schedule is. (SP-023; Ariz. Admin. Code R9-3-101.)
• "Compensation" includes money and other benefits: goods, services, vouchers, time, and public funding. A babysitting trade counts. (SP-023; R9-3-101.)
• A paid day counts as a whole day. If you're paid for a child on a given day, that child counts toward your total whenever the child is there that day. You can't reclassify a child as unpaid to stay under the line. ADHS does say you can have four paid children in the morning and a different four in the afternoon after the first group leaves. (SP-023.)
• Who isn't counted: your own children, children who live in your home, and children older than 12. (SP-023.)

Side hustle reality check: "no state certificate" doesn't mean "no rules." Your city's zoning code, your HOA or lease, your homeowner's insurance, and your taxes still apply. Parents may still ask whether you have a fingerprint clearance card or CPR training, even when the law doesn't require them.

Path 1: DES certified family child care home (up to 4 kids)

DES certifies family child care providers to care for up to four children in their home. DES says it especially needs providers who care for infants and who offer evening, overnight, and weekend care. (DES, Become a DES Certified Family Child Care Provider.)

How many children: DES may certify a home provider for up to four children at a time from birth through age 12 for compensation. A provider may care for up to six children at a time when no more than four are for compensation and no more than two are younger than age 1 (unless they're a sibling group). DES can set a lower limit based on your space, your ability, or the number of children living in your home. Children 13 and older aren't counted, except a child with special needs. (Ariz. Admin. Code R6-5-5220.)

What DES lists for eligibility: (DES.)

• You must be at least 18.
• A background check and a fingerprint clearance card for you and every household member 18 or older.
• Proof of freedom from tuberculosis for you and all household members, and current immunization records for you and family members 13 and younger.
• Child care liability insurance. DES doesn't list a minimum amount on its page, so confirm with DES.
• Three references you've known for at least a year. The rule says they can't be related to you by blood or marriage. (R6-5-5202.)
• A safe, healthy, child-friendly home.

Other rule requirements to plan for:

• Backup provider: you must name one or more backup providers, such as an adult who meets the backup requirements or a licensed center, group home, or another DES-certified home. (R6-5-5202.)
• First aid and infant/child CPR within 60 days after certification, through a course that follows American Red Cross or American Heart Association guidelines, kept current. (R6-5-5207.)
• Training: at least six hours each calendar year in topics such as health and safety, child development, nutrition, and abuse prevention. (R6-5-5207.)
• Visits: DES makes at least two onsite visits a year, at least one unannounced. (R6-5-5207.)
• Certificate term: three years, tied to you and your address, not transferable. (R6-5-5206.)
• Referrals: DES can deny recertification if you turn down DES-referred children three times without an allowed reason, such as no open slots or illness. (R6-5-5208.)

Why choose DES certification if you can legally watch four kids without it? The main reason is access to families paying with DES child care assistance: Arizona's Child Care Resource & Referral program says certified family child care providers can serve families receiving DES child care assistance as well as private-pay families. (Arizona CCR&R.) Certification also gives parents an outside check on your home. To start, DES asks you to watch its orientation video and submit a pre-application. (DES.)

Path 2: ADHS certified child care group home (5–10 kids)

Once you regularly care for five or more children for compensation in your home, Arizona treats your home as a child care group home: a residence caring for 5 to 10 children through age 12, for less than 24 hours a day. (A.R.S. § 36-897.) It must be certified by ADHS through the Bureau of Child Care Licensing, and the certificate must be posted where parents can see it. It's tied to your address and isn't transferable. (A.R.S. § 36-897.01.)

Who can be the provider

The certificate holder must designate a provider who: (Ariz. Admin. Code R9-3-301.)

• Lives in the home and is 21 or older;
• Has a high school diploma, an equivalency diploma, or a college degree;
• Has one of the following: at least 3 credit hours in child growth and development, nutrition, psychology, or early childhood education; at least 60 hours of training in those subjects or in running a child care business; or at least 12 months of child care experience; and
• Has completed the ADHS orientation for group homes. ADHS's application instructions say you get a certificate of completion after scoring 80% or higher on its evaluation. (ADHS, Read Me Before You Apply.)

The applicant must also hold a valid fingerprint clearance card, and a copy goes in with the application. (A.R.S. § 36-897.01(M); R9-3-201.) ADHS specifies a level one card for the applicant and for all staff and household members 18 and older. (ADHS, Starting a Child Care Group Home.)

Staffing, training, and insurance

• Second adult at six kids: at least one additional adult staff member must be on the premises when six or more enrolled children are there. (R9-3-301(D).) ADHS's guide describes this as 1 staff member for 1–5 children and 2 for 6–10 (not counting your own), with no more than 15 total children at any time. (ADHS guide.)
• Backup adult: when the provider isn't there, an adult with a high school diploma and either six months of child care experience, 2 credit hours, or 30 hours of training must be on site. (R9-3-301(D).)
• Staff age: every staff member must be at least 16, and an adult must supervise staff who aren't adults. (R9-3-301(A).)
• CPR and first aid: a staff member with current infant/child first aid and CPR must be present whenever enrolled children are there. (R9-3-301(I); R9-3-302(E).)
• Training: each staff member completes new-staff training within 10 days and at least 12 hours of training every 12 months. (R9-3-302.)
• TB screening for staff and for residents age 12 and older. (R9-3-301(A).)
• Insurance: at least $100,000 of general liability insurance. (R9-3-301(C).)

The home itself

ADHS's guide lists these questions to answer before you apply: (ADHS, Starting a Child Care Group Home.)

• Indoor space: 30 square feet per child, not counting kitchens, bathrooms, laundry rooms, hallways, garages, and similar areas.
• Outdoor play area: at least 500 square feet, partly shaded, fenced at least 4 feet high with a latching gate.
• Pools: separately fenced at least 5 feet high with a self-closing, self-latching, locking gate.
• Exits: a direct exit to the outside on each level where you provide care.
• Gas lines: an inspection by a licensed plumber or a person licensed to inspect gas lines or heating devices, with the report kept for your compliance officer.
• Agricultural land: if you're within a quarter mile of vacant or agricultural land, extra notification steps apply, and a pesticide buffer-zone agreement may be required. (A.R.S. § 36-897.01(B).)

Can it stay a "side" hustle?

Not during care hours. The provider can't hold outside employment or run another business at the home during hours of operation. Another business can only operate on the premises during those hours if it doesn't bring people onto the property. (R9-3-301(A)(4).) A group home works as an evening or weekend business, or as your main job. It doesn't work as something you run while you're at another job.

Inspections and the fee

ADHS assigns a State Compliance Officer, and its guide says group homes get at least two unannounced inspections each year. (ADHS guide.) Inspection records are public through ADHS and AZCareCheck. Apply through the ADHS Child Care Facility Licensing Portal.

Fee (hedged): ADHS's group home guide lists $330 for a home with a licensed capacity of 5–10. The fee rule as published lists $1,000, submitted every three years (you can pay half up front and the rest within 120 days), and lets ADHS discount it for homes in a Department-approved program based on available funding. (ADHS guide; Ariz. Admin. Code R9-3-203.) The two official sources show different numbers, so confirm the current fee with ADHS (Phoenix office 602-364-2539, Tucson 520-628-6541) before you budget.

More than 10 kids: a licensed child care facility

Caring for more than 10 children, or for 5 or more in a place that isn't a residence, puts you under ADHS child care facility licensing. A facility can't receive any child for care until ADHS licenses it, and the application needs a fingerprint clearance card. (A.R.S. §§ 36-881, 36-882; SP-023.) That's a commercial child care center, not a side hustle, so we don't cover it here.

Zoning: Phoenix and Tucson

ADHS requires group homes to comply with local zoning, building, and fire codes, plus HOA covenants and restrictions. It says it's your job to find out what applies before you start the certification process. (ADHS guide.) Our Arizona Home Occupation Permits guide covers the general home-business rules. These are the child-care-specific ones:

Phoenix

Phoenix's residential zoning lists dependent care facility as its own use, separate from ordinary home occupations: (Phoenix Zoning Ordinance § 608.D and § 608.E.15–17.)

• Up to six dependents: permitted in every residential district if you meet the conditions. Resident dependents under 12 aren't counted, outdoor play areas must be screened from neighbors by a six-foot hedge, solid fence, or wall, and employees must live at the facility unless ADHS requires a nonresident employee.
• Seven to 12 dependents: requires a use permit under § 307. Hours are limited to 6:00 a.m. to 10:00 p.m., no signs are allowed, you need one parking space per nonresident employee, and the facility must meet Arizona licensing requirements.
• 13 or more: use permit, and generally a center rather than a home.

So a 7–10 child ADHS group home in Phoenix generally needs a city use permit too. Confirm with Phoenix Planning & Development that your setup is classified as a dependent care facility. Phoenix has no general business license. See our Arizona Business License for Side Hustles guide.

Tucson

Tucson's code has a specific Home Occupation: Day Care use, permitted in SR, SH, RX-1, RX-2, R-1, R-2, R-3, MH-1, MH-2, O-1, O-2, O-3, NC, and C-1 zones with PDSD Director approval. (Tucson Unified Development Code § 4.9.7.D–F.) The day care standards include:

• No more than one full-time-equivalent employee who doesn't live there.
• No floor-area limit during day care hours.
• Outdoor play equipment screened by a five-foot fence, wall, or hedge where you adjoin R-3 or more restrictive zoning.
• Hours listed on the application, and they can't create an adverse impact on neighbors.
• Day care vehicles limited to a passenger car, van, or pickup.
• ADHS approval and licensing, if ADHS requires it, before final approval.
• The general home occupation standards Tucson applies to day care, including one sign no larger than one square foot and no goods sold on the premises.

Tucson also generally requires a city business license inside city limits. See Arizona Business License for Side Hustles.

Other cities and unincorporated areas

Mesa, Chandler, Scottsdale, Gilbert, Glendale, and county zoning each set their own rules. Search your city's zoning code for "child care," "day care," or "dependent care," then call the zoning office before you enroll children.

Fingerprint clearance cards

Both the ADHS and DES paths require fingerprinting. (A.R.S. §§ 36-897.01, 46-807.) Cards come from the Arizona Department of Public Safety (DPS). DPS says:

• The fee is currently $67 for paper or electronic applications (credit card fees extra when paying online), and DPS says it can change.
• A card is valid for six years.

Apply through DPS before you start a certification application, since ADHS wants a copy of the card with the application. (Arizona DPS, Fingerprint Clearance Card.)

Taxes: income, home-office deduction, and TPT

• Self-employment tax: if your net earnings from self-employment are $400 or more, you must pay self-employment tax and file Schedule SE. The rate is 15.3% (12.4% Social Security plus 2.9% Medicare). Most home providers report income and expenses on Schedule C. (IRS, Self-Employment Tax.) Use our Arizona side hustle tax set-aside calculator and see Side Hustle Taxes in Arizona.
• Daycare home-office exception: normally a home-office deduction requires space used exclusively for business. The IRS makes an exception for space used regularly for daycare, even if your family uses it too, if you're in the business of providing daycare and you've applied for, been granted, or are exempt from a state license or certification. You then prorate by the hours the space is used for daycare. (IRS Publication 587.)
• Food for the kids: the IRS says to claim food you serve daycare children as a separate Schedule C deduction, not as a home expense. You can never deduct food eaten by you or your family. (IRS Publication 587.)
• Parents will ask for your tax ID: parents claiming the child and dependent care credit may ask you to complete Form W-10 with your name, address, and taxpayer identification number. (IRS, About Form W-10.)
• TPT: child care is a service. Many services aren't in an Arizona TPT business classification, but selling goods alongside a service can be taxable. We didn't find an ADOR ruling specific to home child care, so confirm with ADOR. See Arizona TPT License for Side Hustles.

Costs you can actually verify

We don't publish typical rates or earnings for home child care. No official source reports them reliably, and they vary a lot by city, age group, and hours.

Checklist before you take your first child

1. Count honestly: how many children, how often, and whether you're paid. Up to four paid children (plus your own) is under the ADHS line. Five or more on a regular basis means a group home.
2. Pick your path: no state certificate (up to 4), DES certification (up to 4, opens DES-assisted families), or an ADHS group home (5–10).
3. Check zoning, your HOA, and your lease before you spend money on fencing or equipment.
4. Get a fingerprint clearance card (level one for ADHS), along with every adult in your home who needs one.
5. Call your homeowner's insurer and ask whether your policy covers a home daycare. Group homes need at least $100,000 of general liability coverage.
6. Take infant/child CPR and first aid, even if no rule requires it yet.
7. Write a parent agreement: your hours, rates, sick-child policy, pickup authorization, and emergency plan.
8. Set up records and taxes: a separate bank account, attendance logs, food receipts, Form W-10, and a set-aside for self-employment tax.

Frequently asked questions

How many kids can you babysit without a license in Arizona? ADHS says you can care for up to four children for compensation in your own home, in addition to your own children, without ADHS certification. Regularly caring for five or more children for compensation in your home requires ADHS certification as a child care group home. Local zoning rules still apply.

Do I need a license to babysit in Arizona? Not for occasional babysitting. ADHS says caring for children occasionally at a parent's request isn't "regular" care, and care in the children's own home is exempt from group-home certification. A regular schedule with five or more paid children in your home requires certification.

What is a DES certified child care home in Arizona? It's a family child care home certified by the Arizona Department of Economic Security to care for up to four children for compensation (up to six total in some cases). Providers must be 18 or older, hold fingerprint clearance cards for all household adults, carry child care liability insurance, and complete first aid, CPR, and yearly training.

How do I get a home daycare license in Arizona for 5 to 10 kids? Apply to the ADHS Bureau of Child Care Licensing for child care group home certification through its licensing portal. You need a level one fingerprint clearance card, ADHS orientation, a provider who lives in the home and is at least 21, $100,000 of liability insurance, and a home that meets space and safety rules. Confirm the current fee with ADHS.

Do my own kids count toward the limit? For the ADHS group-home count, no. ADHS doesn't count the provider's own children, children who live in the home, or children over 12. ADHS's guide still caps group homes at 15 total children, including your own. DES counts children differently, so confirm your limit with DES.

Can I run a home daycare in Phoenix? Phoenix zoning permits a dependent care facility for up to six dependents in residential districts with conditions, such as screened play areas and resident employees. Seven to 12 dependents require a use permit. Confirm with Phoenix Planning & Development.

Is home daycare income taxable? Yes. It's self-employment income, and self-employment tax applies once net earnings reach $400. The IRS lets daycare providers deduct regularly used space even if the family also uses it, prorated by daycare hours.