Average Cost to Raise a Child in US Reaches $303,418 Over 18 Years

The average cost to raise a child in the US from birth to age 18 now totals $303,418 after accounting for tax exemptions and credits. 9% rise from the previous year. The analysis, conducted by LendingTree, bases its calculations on expenses including housing, food, child care, apparel, transportation, and insurance.

Parents spend an average of $16,857 annually on child-rearing. The first five years are the most expensive, totaling $29,325, primarily due to infant and toddler day care costs. However, the cost for the initial five years decreased slightly this year because of a dip in day care expenses.

Infant day care remains the top expense, averaging $17,264 per year nationwide. In some states, these costs are higher, reaching $22,628 in California and $20,439 in New York. Federal guidelines consider child care affordable if it does not exceed 7% of household income.

State Variations in Costs Costs differ widely by location.

Hawaii has the highest total at $412,661 over 18 years, followed by Alaska at $365,047 and Maryland at $326,360. California ranks fourth at $312,300, and New Jersey fifth at $312,295. More affordable states include New Hampshire at $201,963, Washington, DC at $202,115, and South Carolina at $204,213.

Washington, DC offers free preschool for 3- and 4-year-olds, which contributes to its lower overall cost. The analysis assumes a married, dual-income couple with one child earning a median family income of $99,999. 9% of their income on basic annual expenses.

This exceeds the affordability threshold for child care in many cases. In rural areas, limited supply of quality child care centers allows providers to set higher prices. In urban centers like New York City, costs are elevated due to high labor and real estate expenses.

The average cost of child care for infants and toddlers there was $26,000 in 2024. A family would need to earn $334,000 annually to cover care for a 2-year-old without exceeding the 7% guideline.

Factors Driving Cost Increases Day care prices have risen 8% on average from June 2024 through March 2026, outpacing overall inflation of 4% over the same period.

Centers have increased rates repeatedly since the pandemic to cover higher operational costs. Wages for child care workers have also risen to match everyday living expenses. The LendingTree study highlights sacrifices some parents make, such as reducing dining out or one parent leaving the workforce.

Families are adapting by shopping at thrift stores for clothing or bartering for goods in online groups. " — Matt Schulz, LendingTree, April 2026 (New York Post) The nation's fertility rates reached record lows in 2025, continuing a two-decade decline. Birthrates dropped sharply among teens and women in their 20s.

High child-rearing costs contribute to these trends.

Broader Economic Implications Higher child care expenses reduce disposable income for other needs, such as housing payments, retirement savings, or emergency funds.

This creates ripple effects across the economy, limiting spending on vehicles, mortgages, or small business investments. The analysis underscores the financial planning required for family expansion amid rising costs.