The 'bare bones' cost of raising a child has spiked: Here's why

The cost of raising a child over 18 years has increased again, now surpassing $300,000 for the first time since 2023, according to LendingTree.

By the numbers:

A new 2026 report from LendingTree, based primarily on 2024 data, estimates that the cost of raising a child to age 18 has risen to $303,418, a 1.9% increase from $297,674 in last year’s report, which was based largely on 2023 data.

That total breaks down to an average annual cost of $16,857 over 18 years. However, expenses during a child’s first five years declined slightly, falling 0.3% from $29,419 to $29,325, largely due to a modest decrease in day care costs. 

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Day care expenses dropped by $572 annually, or 3.2%, marking the only category to see a notable decline in the latest report.

Which states are most expensive, cheapest to raise a child 

Dig deeper:

Parents in Hawaii face the highest costs of raising a young child, averaging $40,342 annually during the first five years, according to LendingTree. Maryland and Massachusetts follow at $36,419 and $34,247, respectively. Among the 10 most expensive states, only Colorado — which ranks seventh at $31,000 per year — is not located on a coast.

By contrast, costs are lowest across much of the South. Mississippi ($17,148) and Alabama ($18,019) rank as the least expensive states, while South Dakota — the only non-Southern state among the seven lowest-cost states — ranks third at $18,622.

Lower child care expenses play a significant role in those rankings. Mississippi, Alabama and South Dakota each have average annual infant day care costs below $10,000. Arkansas, the fifth least expensive state at $19,204 per year, is the only other state where infant day care costs fall below that threshold.

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Costs also vary widely among the nation’s most populous states. California ranks fourth overall at $33,692 annually, while New York places eighth at $30,209. Florida ranks 27th at $24,968, and Texas is among the least expensive at 45th, with annual costs of $20,968.

Where costs of raising a child spiked, dipped

Local perspective:

From the 2025 to 2026 report (mainly analyzing 2023 and 2024 data), 39 states and the District of Columbia saw the annual cost of raising a small child jump. Fourteen states saw year-over-year increases of at least 10.0%, including four where costs spiked by at least 20.0%. 

Nebraska (27.4%) saw the largest increase, followed by Montana (24.5%), Maine (24.4%) and Wisconsin (23.3%). The states with the biggest increases were spread throughout the country but tended to be more sparsely populated states.

Eleven states saw the annual cost of raising a small child dip from 2025’s report to 2026’s, though most of the decreases were smaller than 2.0%. The one glaring exception: New Hampshire, which saw costs fall by a stunning 19.5% year over year. North Dakota (9.9%) and Vermont (5.2%) were the only other states to see decreases of more than 5.0%.

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Tips for parents 

What you can do:

• Start saving early: Begin setting aside money now, even small amounts, in a high-yield savings account to build a cushion before your child arrives.
• Use available benefits: Check employer and government programs, including dependent care FSAs and tax credits, to reduce out-of-pocket costs.
• Spend wisely: Focus on essentials and save by buying secondhand or discounted items when possible.
• Reduce high-interest debt: Pay down credit card balances to free up money for child-related expenses.

Methodology:

LendingTree researchers calculated the average annual cost of raising a young child in a two-earner household across all 50 states and the District of Columbia by analyzing a range of household expenses. 

These included housing, food, infant day care, clothing, transportation and health insurance premiums. To arrive at a net annual cost, dependent tax benefits — such as exemptions and credits — were subtracted. 

Researchers assumed a jointly filed tax return with a combined household income of $99,999, reflecting the national median family income in 2024, the most recent year available.

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The analysis draws on data from multiple sources, including the U.S. Census Bureau’s 2024 American Community Survey, the Bureau of Labor Statistics’ Consumer Expenditure Surveys, and the Massachusetts Institute of Technology’s Living Wage Calculator.