Foster parents in Tennessee are paid a tax-free daily board rate from the Department of Children’s Services that works out to about $979 to $1,122 per month for a child in standard foster care, depending on the child’s age. Children with medical, behavioral, or developmental needs qualify for higher rates, and some placements pay over $3,000 per month. So the short answer to how much foster parents get paid in Tennessee is: it depends on the child’s age and needs, and none of it counts as taxable income.
Standard Board Rates by Age
DCS sets a daily reimbursement rate tied to the USDA’s estimated cost of raising a child in the urban South and adjusts it annually.1Tennessee Department of Children’s Services. DCS Policy 16.29, Foster Home Board Rates As of July 1, 2025, the regular rates are:2TN.gov. Board Rates
- Ages 0–11: $32.62 per day, roughly $979 per month
- Ages 12 and older: $37.40 per day, roughly $1,122 per month
The money is meant to cover the child’s food, housing, basic clothing, transportation, school supplies, and everyday activities. It is a reimbursement for what you spend on the child, not a paycheck.
Higher Rates When a Child Has Greater Needs
Many foster children arrive with diagnosed medical conditions, behavioral health issues, or developmental delays that cost more to support. DCS pays elevated rates in those situations, also effective July 1, 2025:2TN.gov. Board Rates
- Special circumstances, ages 0–11: $35.88 per day (about $1,077 per month)
- Special circumstances, ages 12 and older: $41.14 per day (about $1,234 per month)
- Contracted foster care: $50.16 per day (about $1,505 per month) for children placed through a private child-placing agency that provides added support
- Medically fragile foster care: $102.43 per day (about $3,073 per month) for children with serious ongoing medical needs
- Extraordinary board rates: up to $60.00 per day, approved case by case
The child must have documented needs beyond what the regular rate covers. A DCS caseworker handles the assessment. You don’t negotiate this yourself, but keeping clear records of the child’s care needs helps the caseworker justify the higher rate.
Kinship Caregivers Start at a Lower Rate
If you are a relative taking in a family member’s child before you are fully licensed as a foster home, you receive only $15.37 per day, about $461 per month.2TN.gov. Board Rates That is less than half the regular rate, and it catches many grandparents and other relatives off guard.
Once you complete the full foster home approval process, which involves training, a home study, and background checks, your rate moves up to the standard $32.62 or $37.40 per day for the child’s age. If the interim rate is causing hardship, ask your caseworker whether approval can be expedited.
What the Board Rate Is Expected to Cover
The daily rate is expected to cover routine clothing purchases. On top of the rate, DCS provides a one-time initial clothing allotment when a child enters custody without adequate clothing, ranging from $125 for children ages 0–2 up to $250 for teens 13 and older. After that, foster parents are expected to spend at least $400 per year on clothing for children ages 0–11 and $500 per year for ages 12–18, with receipts tracked. All clothing bought for the child belongs to the child and goes with them if they move.
The rate also includes a small personal allowance you’re expected to give the child: at least $1 per day for ages 0–12 and $2 per day for ages 13–17, so kids get practice handling money.3Tennessee Department of Children’s Services. DCS Policy for Clothing and Allowance School supplies come out of the same rate.
Other Financial Support Beyond the Board Rate
TennCare
Every child in foster care is enrolled in TennCare Select, which covers medical, dental, behavioral health, prescriptions, and transportation to appointments with no premiums or copays for the foster family.4Medicaid.gov. Managed Care in Tennessee Youth who age out at 18 can keep TennCare until age 26 if they were on Medicaid when they left care.5State of Tennessee, Children’s Services. TennCare for Youth Who Aged-out
Childcare
Working foster parents don’t pay for childcare out of pocket. The Child Care Certificate Program pays approved providers directly through the Department of Human Services, with DCS funding the placement.6TN.gov. Child Care Certificate Program Your caseworker makes the referral.
TN Strong Families HRA
Foster children with intellectual or developmental disabilities may qualify for the TN Strong Families Healthcare Reimbursement Account, worth up to $20,000 per calendar year for medically necessary items and services. An Independent Support Coordinator manages the benefit, and unspent funds don’t roll over.7TN.gov. TN Strong Families Guide
Pre-Approved Extras
DCS can reimburse specific out-of-pocket costs such as travel to appointments or expenses tied to holidays and graduations. Get written approval from your caseworker before spending.
Tax Treatment
Foster care board payments are excluded from federal gross income under Section 131 of the Internal Revenue Code, and the exclusion covers difficulty-of-care payments for children with special needs.8Office of the Law Revision Counsel. 26 USC 131 – Certain Foster Care Payments You won’t receive a W-2 for the payments, and you don’t report them as income. Tennessee has no state income tax, so nothing changes at the state level.
If you spend more on a foster child than the board rate reimburses, those unreimbursed costs may qualify as a charitable contribution deduction, provided the spending was primarily to benefit the placing agency rather than part of an adoption plan.9Internal Revenue Service. Publication 526 (2025), Charitable Contributions
A foster child who lives with you more than half the year and meets the IRS tests can be claimed as your dependent. Board payments from a state agency count as support provided by the state, not by the child, so they don’t disqualify the child under the support test.10Internal Revenue Service. Publication 501 (2025), Dependents, Standard Deduction, and Filing Information A qualifying foster child can also make you eligible for the Child Tax Credit if the child has a Social Security number and meets the age requirement.11Internal Revenue Service. Child Tax Credit
Effect on SSI and SNAP
For SSI purposes, the Social Security Administration treats foster care payments to the provider as not being income to the provider.12Social Security Administration. Foster Care Payments Any amount paid above the standard foster care rate could be treated as income. Rules differ across programs, so if you receive SSI or SNAP, ask your caseworker how a placement will affect your specific benefits.
When You Get Paid
DCS issues payments twice a month, on or about the 1st and the 15th, each covering the preceding two-week service period.13Tennessee Department of Children’s Services. Daily Rate Child Placement Contract Between DCS and Foster Parents You can choose direct deposit or a paper check. To enter the payment system, you complete a W-9 and register as a state vendor.14Tennessee Department of Children’s Services. Case Service Request Guide Your DCS worker sets this up once your home is approved.
If You Adopt From Foster Care
Financial support doesn’t end at adoption. Tennessee’s adoption assistance program closely mirrors foster care rates: for 2025, $32.57 per day for children ages 0–11 and $37.35 per day for ages 12 and older, with special circumstances and extraordinary rates also available and the extraordinary rate capped at $60 per day.2TN.gov. Board Rates Children adopted from foster care keep their TennCare eligibility.