How Much Do Foster Parents Get Paid in Wisconsin?

Foster parents in Wisconsin get paid between $384 and $586 per child per month in 2026 for basic care, with the exact amount set by the child’s age and your certification level. Children with higher needs can generate extra monthly payments on top of that, up to a combined cap of $2,000 per child. The money is a reimbursement for the child’s expenses, not taxable income to you.

2026 Monthly Rates by Age

Wisconsin sets a flat statewide rate called the Uniform Foster Care Rate. The 2025-27 biennial budget (2025 Wisconsin Act 15) raised it by 2.5 percent for calendar year 2026. If you are certified at Level 2 or higher, your monthly payment per child is:

Age 0–4: $452
Age 5–11: $495
Age 12–14: $562
Age 15–18: $586

The payment moves up to the next bracket on the child’s birthday.¹²

Most foster parents are licensed at Level 2 from the start. Level 2 is the standard entry point for both relative and nonrelative caregivers, with nonrelatives needing three favorable references. Levels 3, 4, and 5 are for foster parents trained to handle children with progressively more intensive needs, and the rate stays the same because the age brackets do; the supplemental payments described below are what climb.³

The Level 1 and Kinship Exception

Level 1 is a limited category used for foster parents who have a prior relationship with the child but aren’t relatives. It pays $384 per month regardless of the child’s age, and Level 1 homes are not eligible for supplemental payments, exceptional payments, or the initial clothing allowance. A Level 2 foster parent who fails to finish required initial training can also drop to Level 1.³

Relatives caring for a child through a court-ordered placement receive the kinship care rate, also $384 per month at any age. A kinship caregiver who obtains a Level 2 or higher foster care license gets the higher age-based rates instead.¹

Extra Payments for Children With Higher Needs

Many foster children arrive with medical, behavioral, or emotional needs that the basic rate alone can’t cover. Wisconsin adds two more payment layers for homes certified at Level 2 or above.

The supplemental rate is calculated from a standardized assessment called the Child and Adolescent Needs and Strengths tool. A caseworker scores the child’s emotional, behavioral, and physical needs, and the total points are multiplied by a dollar figure set by the Department of Children and Families to produce a monthly amount. A child with mild challenges will score low; one with complex trauma or a serious disability will score much higher, so the supplemental payment varies widely from case to case.⁴

The exceptional rate is a further payment for children whose needs are severe enough that they would otherwise require a group home or residential facility. It goes on top of the basic and supplemental amounts.²

All three payments combined cannot exceed $2,000 per month for a single child. You or the placing agency can request a rate redetermination at any time, not only at the standard six-month reassessment.²

One-Time and Situational Payments

Initial Clothing Allowance

When a child first enters your home, the placing agency can pay a one-time clothing allowance:

Age 0–4: up to $225
Age 5–11: up to $263
Age 12–18: up to $300

A child who returns to foster care after being out of placement for at least 120 days qualifies again, because the return counts as an initial placement. Level 1 homes are not eligible.⁵⁴

Retainer Fee

Placing agencies can pay a monthly retainer to foster parents who keep beds open for emergency placements. It’s separate from the payment for any specific child in your home, and not every county or agency offers it.⁴

Costs You Don’t Have to Cover Yourself

Beyond the check, several programs pick up expenses that would otherwise come out of the monthly rate.

Healthcare. Every child in out-of-home care qualifies for Foster Care Medicaid regardless of your income. It’s a full-benefit plan with no copays, premiums, or deductibles, covering medical, dental, and mental health services on par with BadgerCare Plus.⁶

Property damage. Wisconsin runs a foster parent liability insurance program that reimburses you for damage or loss of property caused by a child in your care, including intentional damage, when it isn’t already covered by your own insurance.⁷

Childcare. If you work, attend school, or participate in job training, you can apply for subsidized childcare through Wisconsin Shares. For foster children placed in your home, the standard financial eligibility limits don’t apply, though you still need to verify your work or school activity.⁸⁹

School meals. Foster children are categorically eligible for free breakfast and lunch without any household application. The school needs documentation of the child’s foster status from the court or placing agency, and a new school should honor an existing certification when the child transfers.¹⁰

Taxes: What’s Excluded and What You Can Still Claim

Foster care reimbursements in Wisconsin, including basic, supplemental, and exceptional payments, are excluded from your gross income under federal law. You don’t report them on your tax return and shouldn’t receive a W-2 or 1099 for them.¹¹

The exclusion has caps. Regular foster care payments for foster individuals over 18 are excludable for up to five such individuals in your home. Difficulty-of-care payments (the supplemental and exceptional equivalents) can be excluded for up to ten children under 19 and five individuals aged 19 or older. Payments for anyone beyond those thresholds become taxable.¹¹

Even though the payments themselves aren’t taxable, foster children placed with you by an authorized agency or court order can still qualify you for two federal credits:

Child Tax Credit. Available for a foster child under 17 at year-end who lived with you more than half the year and has a valid Social Security number, and whose own support didn’t exceed half their total support for the year. For tax year 2026, the credit is scheduled to revert to $1,000 per qualifying child, down from $2,000, and personal exemptions for dependents return. Congress could change these figures, so check current IRS guidance when you file.¹²¹³
Earned Income Tax Credit. A foster child who lived with you in the United States more than half the year, placed by a state or local agency, tribal government, licensed tax-exempt organization, or court order, counts as a qualifying child. The EITC is fully refundable, so you receive it even if you owe no federal tax.¹⁴

If You Adopt From Foster Care

Foster parents who adopt a child from the foster care system may qualify for ongoing monthly adoption assistance. The subsidy uses the same three-part structure: a basic rate based on the child’s age at adoption, a supplemental rate based on assessed needs, and an exceptional rate for the most intensive cases. The monthly total can’t exceed the child’s foster care maintenance rate or $2,000, whichever applies.¹⁵

Not every adopted child qualifies for a monthly subsidy. The child must have special care needs at the time of adoption. When the child doesn’t currently have special needs but is at high risk of developing them, the state can enter into an agreement without a monthly payment and add a subsidy later if those needs emerge. Children adopted from foster care also remain eligible for Medicaid coverage.¹⁵

1
Wisconsin Department of Children and Families. Basic Maintenance Foster Care Rates and Kinship Care Rates for CY 2026
2
Wisconsin Department of Children and Families. Wisconsin Uniform Foster Care Rates
3
Wisconsin Department of Children and Families. Foster Care Levels of Care Certification Information
4
Wisconsin State Legislature. Wisconsin Administrative Code DCF 56.23 – Supplemental Payments, Exceptional Payments, Initial Clothing Allowance, and Retainer Fee
5
Cornell Law School. Wisconsin Administrative Code DCF 56.23 – Supplemental Payments, Exceptional Payments, Initial Clothing Allowance, and Retainer Fee – Section: Initial Clothing Allowance
6
Wisconsin Department of Children and Families. Medicaid Coverage
7
Wisconsin Department of Children and Families. Foster Parent Liability Insurance Information
8
Wisconsin Department of Children and Families. 9.2 Financial Eligibility
9
Wisconsin Department of Children and Families. Wisconsin Shares for Children in Out-of-Home Care Placements
10
U.S. Departments of Agriculture, Health and Human Services, and Education. Maximizing Categorical Eligibility for Free School Meals for Students in Foster Care
11
Office of the Law Revision Counsel. 26 USC 131 – Certain Foster Care Payments
12
Internal Revenue Service. Publication 501 (2025), Dependents, Standard Deduction, and Filing Information
13
Congress.gov. Selected Issues in Tax Policy – The Child Tax Credit
14
Internal Revenue Service. Qualifying Child Rules
15
Wisconsin Department of Children and Families. Adoption Assistance Program