LendingTree Estimates 2026 Cost of Raising a Child at $303,418 After Tax Credits

A LendingTree report released on April 24, 2026, estimates the cost of raising a child from birth through age 18 at $303,418 after tax credits. The figure reflects an increase from the previous year and a nearly 28% rise since 2023. Families spend an average of $16,857 a year per child, according to the report.

Day care costs top $17,000 annually for many families, the report states. The federal government defines affordable child care as costing no more than 7% of a family's income. Many families pay two to three times that percentage of their income.

Parents spend about 22% of their income on basic expenses related to a child in the first five years. The total cost of raising a child over 18 years in Hawaii exceeds $412,000.

States including Alaska, Maryland, California and New Jersey have child-rearing costs around or above $300,000 over 18 years. In contrast, states such as New Hampshire and Mississippi have costs closer to $200,000 over 18 years. These variations underscore how location influences the financial burden of parenting.

Ashley Feinstein Gerstley, a certified financial planner, author and founder of The Fiscal Femme, said increases in child-rearing costs are tied to broader economic shifts building for years. 'A lot of this started with pressures that built during and after the pandemic,' Gerstley said.

She added that housing inventory was already tight, then more people moved, demand went up, and higher interest rates made it harder for families to find affordable options.

Gerstley told 'Good Morning America' that families feel increased costs most in housing, childcare and at the grocery store. 'Parents don't need a report to tell them raising kids has gotten more expensive, because we have been living it,' she said.

Gerstley also stated that food prices jumped because it became more expensive to produce, package and transport groceries due to higher labor costs, supply chain disruptions and fuel prices.

Federal subsidies that helped keep child care costs in check during the pandemic expired in 2023. Gerstley said workers who left the child care industry during COVID did not come back, wages had to rise to fill the gap, and those costs were passed along to parents.

She noted that when the cost of essentials rises faster than income, there is less room in the budget for everything else, and with higher inflation over the last few years, almost everything else got more expensive too.

Nadine Patel, a mom of two in New Jersey, described the ongoing financial strain. 'Between day care, groceries and just trying to keep up with everything they need, it feels like every paycheck already has a job,' Patel said. ABC reported her account as part of broader parent experiences.

Noelle Sullivan, a mother of three in Ohio, shared strategies for managing costs. 'We used to buy everything new with our first. Now, it is like, if I can borrow it, find it used or skip it altogether, I will.

You realize pretty quickly what actually matters and what does not,' Sullivan said. Jacob Turner, a dad in San Diego, emphasized planning to mitigate expenses. 'I cannot always reduce the costs, but I can plan better for them.

We have a separate account just for 'kid expenses' now -- even things like birthday parties or camp deposits. It helps take some of the panic out of it,' Turner said. ABC reported these parent perspectives alongside the LendingTree data.