Foster parents in Minnesota receive a basic monthly payment of $827 to $1,157 per child through the Northstar Care for Children program, with the exact amount tied to the child’s age. Children with greater needs qualify for a supplemental payment on top of that, which can add up to $1,815 more per month. The payments are reimbursements for the child’s expenses rather than a wage, and they are generally not taxable at the federal level. So how much foster parents make in MN depends on the child’s age, the child’s assessed level of need, and how many children are placed with you.
Basic Monthly Rate by Age
Minnesota sets per diem rates by the child’s age and adjusts them each year, with annual increases capped at three percent. For the state fiscal year running July 1, 2025 through June 30, 2026, the basic monthly rates are:
- Birth through age 5: $827 per month ($27.19 per day)
- Ages 6 through 12: $979 per month ($32.19 per day)
- Ages 13 through 20: $1,157 per month ($38.04 per day)
The basic rate is meant to cover food, clothing, shelter, daily supervision, school supplies, personal items, and reasonable travel costs for things like family visitation or keeping the child at their current school.1Minnesota Department of Human Services. Northstar Care for Children Basic, Supplemental, and Initial Clothing Rates SFY 2026
Supplemental Payments for Higher Needs
Many foster children need more intensive care than the basic rate covers. Children with medical conditions, developmental disabilities, trauma histories, or significant behavioral challenges can qualify for a supplemental payment on top of the basic rate. The amount depends on an assessment called the Minnesota Assessment of Parenting for Children and Youth, or MAPCY.2Minnesota Department of Human Services. Minnesota Assessment of Parenting for Children and Youth (MAPCY)
The MAPCY produces a level from A through Q. Levels A and B pay no supplement. Starting at Level C, the monthly supplement for SFY 2026 is $121 and increases by roughly $121 per level up to Level Q, which pays $1,815 per month on top of the basic rate. A teenager assessed at Level Q could bring total monthly payments to nearly $3,000.1Minnesota Department of Human Services. Northstar Care for Children Basic, Supplemental, and Initial Clothing Rates SFY 2026
A few reference points across the range:
- Level C: $121 per month
- Level F: $484 per month
- Level J: $968 per month
- Level N: $1,452 per month
- Level Q: $1,815 per month
Therapeutic foster care placements, which involve children with serious emotional or behavioral needs, tend to land at higher MAPCY levels because of the intensive parenting those children require. The difference between a Level B placement and a Level J placement is close to $1,000 per month, so the assessment has a real effect on what you receive.
Emergency Rate When a Child First Arrives
When a child enters foster care for the first time, or returns after a gap of more than two years, there often isn’t time to complete a MAPCY assessment before placement. In those cases the county can apply an emergency rate that combines the basic rate with a Level D supplemental payment of $242 per month. The emergency rate lasts up to 30 days of continuous placement.3Minnesota Department of Human Services. Bulletin 24-32-03 – Northstar Care for Children Basic and Supplemental Payment Rates
If the county hasn’t completed and approved a MAPCY by day 31, the supplemental portion drops to Level B, which pays nothing. The basic rate continues, but the extra piece disappears until the assessment is finished. If your county is slow to schedule the MAPCY, follow up.
One-Time Clothing Allowance
Children frequently arrive without adequate clothing. Minnesota provides a one-time clothing allowance during the first 60 days of a child’s initial placement, based on individual need. The county approves the amount, and it cannot exceed the monthly basic rate for the child’s age group. For a teenager entering care in SFY 2026, that means up to $1,157 for clothing.4Minnesota Office of the Revisor of Statutes. Minnesota Statutes 260C.4413
After that initial period, ongoing clothing costs come from the monthly basic rate. The county also considers whether the biological parent can help provide clothing before approving the full allowance.
The Child’s Medical Care Is Covered Separately
You do not pay for your foster child’s healthcare out of the monthly rate. Children in foster care in Minnesota are automatically eligible for Medical Assistance, the state’s Medicaid program, starting the month they enter care. There’s no application to fill out and no financial eligibility test for the child. Medical, dental, mental health services, and prescriptions are covered.5Minnesota Department of Human Services. Medical Assistance for Children in Foster Care (MA-FC)
If You Adopt or Become a Permanent Kinship Caregiver
The payment structure changes if the placement becomes permanent. Adoption assistance and kinship assistance under Northstar Care use “alternate” rates set at half the foster care basic rate. For SFY 2026:
- Birth through age 5: $414 per month
- Ages 6 through 12: $490 per month
- Ages 13 through 20: $579 per month
Supplemental payments are also halved. A child who received Level J supplemental payments of $968 per month in foster care would receive $484 per month under adoption assistance.1Minnesota Department of Human Services. Northstar Care for Children Basic, Supplemental, and Initial Clothing Rates SFY 2026
The child still qualifies for Medical Assistance, which offsets some of the payment difference.
Taxes: What You Keep
Foster care payments in Minnesota are generally not taxable at the federal level. Under federal law, payments from a state foster care program for caring for a foster child in your home are excluded from gross income.6Office of the Law Revision Counsel. 26 USC 131 – Certain Foster Care Payments
The supplemental “difficulty of care” payments are also tax-free, with a cap: you can exclude difficulty of care payments for up to 10 foster children under age 19, and up to 5 who are 19 or older. For regular foster care payments, the exclusion applies for an unlimited number of children under 19 and up to 5 who are 19 or older. Most Minnesota foster families are well within these limits.7Internal Revenue Service. Publication 525 – Taxable and Nontaxable Income
One exception: standby payments for keeping a bed available for emergency placements are taxable, even though regular foster care payments aren’t.8Internal Revenue Service. Publication 4694 – Raising Grandchildren May Impact Your Federal Taxes
Even though the payments aren’t taxable income, you can still claim federal tax credits. A foster child placed in your home by an authorized agency or court order counts as a qualifying child for the Child Tax Credit and the Earned Income Tax Credit, as long as age and residency requirements are met.9Internal Revenue Service. Tax Benefits for Parents and Families
For the Child Tax Credit, the foster child must be under age 17 at the end of the tax year and must be someone you can claim as a dependent. The maximum credit for tax year 2026 is $2,200 per qualifying child. The child must have lived with you for more than half the year, which most ongoing foster placements satisfy.
The Earned Income Tax Credit can matter more for foster families with moderate incomes. Foster children who lived with you for more than half the year and meet age and relationship tests qualify. The EITC amount depends on your earned income and the number of qualifying children, and you need a valid Social Security number for yourself, your spouse if filing jointly, and each child you claim.10Internal Revenue Service. Who Qualifies for the Earned Income Tax Credit (EITC)
How and When You Get Paid
Your county social services agency handles foster care payments, typically monthly by direct deposit. The county where the child’s case originates is financially responsible, even if you live in a different county. The state sets the base rates and supplemental tiers, but individual counties administer the program, so the speed of payments and administrative processes can vary depending on where you are.