child-rearing costs – A LendingTree study ranks every US state by the estimated cost of raising a child over 18 years, highlighting big differences in childcare, rent and insurance.
For many parents, the work isn’t just raising a child, it’s also figuring out how to afford the price of everyday life—often state by state.
A LendingTree study released in April estimates that US families spend an average of $303,418 to raise a child over 18 years. The study also finds that parents spend, on average, 21.9% of their income on child-rearing costs each year, a modest decrease from 22.6% in the 2025 version of the analysis.
While the headline numbers vary widely across the country. the study points to one consistent driver: the rising cost of childcare during the workday. which is frequently the largest expense tied to having a child.. Sandra Bishop. senior director of research for Child Care Aware of America. said in 2025 that in 45 states and Washington. DC. the average childcare bill for families with two children exceeds a mortgage payment.. She also emphasized that this challenge has been persistent. noting that since Child Care Aware began tracking costs in 2000. childcare has remained a major expense for families and its price has increased each year it has been tracked.
Bishop linked the pressure on family budgets to the underlying economics of care. She said that staff costs represent roughly 70% to 80% of what it costs to provide childcare, and that as living costs rise, the cost of care rises as well.
LendingTree’s methodology compares spending patterns for two-person households versus households with a child. using category differences for items such as rent. food. and transportation.. For day care and apparel, researchers use average annual costs families face in each state.. To build state-by-state estimates. LendingTree drew on multiple datasets. including the US Census Bureau’s American Community Survey. the US Bureau of Labor Statistics’ consumer expenditure surveys. Child Care Aware of America’s Price of Care report. and IRS data. among other sources.
At the bottom of the cost ladder. Mississippi ranks as the cheapest state to raise a child in 2026. with an annual average cost of $17. 148.. The study says Mississippi’s low ranking is largely tied to the state’s day care costs. which come in at the lowest among all states in the analysis.. Over 18 years. Mississippi’s projected child-rearing cost is $208. 621. and the report notes that apparel. food. and health insurance premium costs also stay relatively low.
Alabama follows next in the study’s ranking among the lowest-cost states, at $18,019 annually.. LendingTree says Alabama’s day care costs are tied for the second-lowest nationwide. and it also points to the study’s highest tax credit or exemption value as a factor that can reduce the overall cost burden.. The report estimates that Alabama parents spend about 16.7% of their income on child-rearing costs each year.
South Dakota and South Carolina remain near the bottom as well.. South Dakota’s annual estimate is $18,622, supported by day care costs tied with Alabama for the second-lowest in the country.. South Carolina’s annual cost is $18. 910. and LendingTree highlights a mix of relatively low day care costs and a sizable tax credit or exemption. while also noting that households with children pay less in rent than households without children based on its analysis.
As the ranking moves upward, specific categories begin to stand out in different places.. Arkansas is estimated at $19. 204 annually. with the report calling out that infant day care costs in Arkansas are under $10. 000. helping the state remain near the bottom overall.. Georgia. at $20. 365 annually. is also described as more affordable thanks to lower day care. rent. and apparel costs. plus one of the largest tax credits or exemptions in the study.
Texas ranks among the least expensive large states, with an annual estimate of $20,968.. LendingTree notes Texas has the lowest food costs in the country as well as relatively low rent and day care costs compared with other big states.. Iowa’s annual cost is $21. 137. and the report says costs have continued to decrease. including a 3.1% drop from the prior report.. Oklahoma. at $21. 218 annually. is described as having higher added rent than some other low-cost states. but lower costs in food. apparel. and day care help keep the total down.
Even within the lower-cost portion of the ranking, the study shows how healthcare and access issues can create pressure.. Louisiana. estimated at $21. 303 annually. is described as among the top ten cheapest states. with health insurance premiums emerging as a bigger pain point than in many other states.. West Virginia. despite having the third-highest insurance premiums in the US. stays relatively affordable due to lower day care costs. according to the report.
LendingTree’s dataset also highlights how some states are experiencing sharper changes from one year’s estimate to the next.. New Mexico. at $21. 909 annually. is said to have seen annual costs fall 3.9% from the prior report. one of the biggest declines in the study.. Kentucky. at $22. 097 annually. shows the opposite pattern: the report says annual costs rose 15.4% from last year. describing it as the seventh-largest increase nationwide.
A notable portion of the ranking involves states where childcare affordability is tied to what families can access and what they can pay.. Nevada is estimated at $22. 751 annually. and the study describes Nevada as having childcare shortages that it refers to as a “childcare desert. ” citing a 2023 report by a Nevada state workforce office about the lack of options and high demand for available centers.
The national cost picture becomes even clearer near the middle ranks. where states’ costs can be above the national average or are rising quickly.. New Hampshire’s annual estimate is $22. 805. and the report says it recorded the biggest annual cost drop in the country. falling 19.5%.. Yet Minnesota’s annual cost is $29. 322. and LendingTree attributes Minnesota’s expense largely to high day care costs that exceed $20. 000 a year.
In the upper tier of the rankings, day care frequently remains the headline expense.. Illinois has an annual estimate of $27,906, with LendingTree saying day care is the biggest pressure point and nearing $20,000 per year.. Arizona’s annual cost is $27. 917. and the report describes fifth-highest added rent costs and a relatively high income share spent by parents.. Oregon. estimated at $28. 393 annually. is similarly described as having day care as its largest category at $19. 500 a year. partially offset by tax credits or exemptions.
For some places, the study suggests affordability hinges on a blend of rent dynamics, food costs, and insurance.. Alaska is estimated at $29. 024 annually. but LendingTree notes that over 18 years it becomes the second-most expensive state. driven by high added rent and transportation costs and high food costs.. Washington is estimated at $31. 937 annually. and while the report says annual costs fell 1.5% from last year. the state still remains among the most expensive for parents. with day care ranked sixth-highest nationwide.
The most expensive end of the list underscores the scale of differences from state to state.. The District of Columbia has an annual average cost of $30. 146. and LendingTree says it has the highest food costs and second-highest day care costs in the study. though it also reports major rent relief—households with children paying less than those without.. New York is estimated at $30. 209 annually. with day care above $20. 000 a year and food and apparel costs described as among the highest nationwide.
Colorado, at $31,000 annually, is described as the seventh-most-expensive state in the analysis, with day care costs close to $21,000 per year.. New Jersey’s annual estimate is $31. 948. and the report says day care and added rent are major drivers. with apparel also ranking third-highest in the country.. California is estimated at $33. 692 annually and. while the report highlights high apparel costs and second-highest health insurance premiums. it also points to relatively low added rent costs and higher tax credits or exemptions compared with other states.
Massachusetts is estimated at $34,247 annually, and LendingTree says it has the highest infant day care costs in the country.. Maryland comes next at $36. 419 annually. with day care costs ranking third-highest nationwide. and the report notes that Maryland’s annual child-rearing costs rose 15.2% from the previous report.
Hawaii tops the list.. It is estimated as the most expensive state to raise a child in 2026 at $40,342 annually.. LendingTree says Hawaii leads the national ranking by nearly $4. 000 in annual costs and that parents face some of the highest costs across multiple categories. including rent. food. transportation. day care. and health insurance premiums.. The report also estimates Hawaii has the highest income burden in the country. with parents spending about 27.4% of their income on child-rearing costs.
The economic implications of these rankings extend beyond household budgets.. Because childcare costs are both substantial and heavily tied to staffing—an area where wage pressure tends to follow broader cost-of-living trends—the study suggests that family affordability may track closely with labor market conditions in each state.
At the same time. the differences in how rent. taxes. and insurance premiums shape the final bill help explain why two families can face very different financial realities even if their child-rearing needs are similar.. In some states. the report notes “rent relief” where households with children pay less than those without. while in others. added rent costs amplify the overall burden.
For parents and policymakers. the ranking also offers a way to think about tradeoffs: states with lower childcare costs may still confront high insurance premiums. and states with higher tax credits may not fully offset expensive categories like day care or food.. With childcare often acting as the largest single expense. shifts in childcare supply. center costs. and staffing levels can ripple through family budgets for years.
The story was first published in May 2025 and most recently updated in May 2026.
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