Here’s how much it costs to raise a child in every state in 2026: Where you live can impact the bill by more than $200,000

The cost of raising a child has surged to an all-time high, with the average annual expenditure reaching $303,418 in 2026, according to a recent analysis by LendingTree.

This significant increase marks the first time the estimate has exceeded $300,000 since the company began tracking it in 2023. The latest figures show that the cost of raising a child has risen by 9% from last year's report, and by an even more substantial 8% compared to the initial report.

The analysis takes into account various expenses such as rent, food, infant day care, clothing, transportation, and health insurance premiums, while also considering tax exemptions and credits.

Raising a child in Hawaii comes with a hefty price tag, with an estimated 18-year cost of $412,661. This makes it the most expensive state to bring up a child by a significant margin, with Alaska being a close second at $365,047.

The costs vary significantly across states, with six states projected to exceed $300,000 in total expenses: Hawaii, Alaska, Maryland, California, New Jersey, and Kansas. In contrast, families living in New Hampshire, the District of Columbia, and South Carolina face estimated costs that are less than half of Hawaii's total.

The first five years of a child's life account for the majority of the expenses, with day care being a major contributor to these costs. According to LendingTree's analysis, which takes into account various expenses such as rent, food, infant day care, clothing, transportation, and health insurance premiums, while also considering tax exemptions and credits, these early years are by far the priciest.

According to LendingTree's analysis, families in various states face significantly different costs when it comes to raising a young child. The estimated annual expenditure for childcare and related expenses ranges from $12,061 in some states to over $29,325 in others.

The disparity is particularly pronounced in Hawaii, where families can expect to spend 4% more on childcare compared to the national average. In fact, 22 states have seen a significant increase in childcare costs, with at least 20% of parents' income being allocated towards these expenses. This trend has been observed across multiple years, including last year's report.

The financial burden is taking its toll on families, with many feeling forced to make difficult decisions about their family size due to the high cost of raising a child. A recent survey found that 4 in 5 parents believe childcare costs are rising, and one in five say these expenses have limited how many children they can afford to have.

The cost of raising a child varies significantly across different states, even for small children. For example, California ranks ninth among states for childcare costs for young children, but falls to 50th place when considering the expenses over an 18-year period.

In contrast, families with young children in the South tend to face lower annual costs compared to other regions. Mississippi and Alabama are the two least expensive states for infant care, with annual costs below $10,000. They are followed by South Dakota, which is the only non-Southern state among the seven cheapest.

New Mexico's cost of raising a child over 18 years is relatively high, ranking 45th at $218,588. This figure was calculated before the state implemented universal free childcare in November 2025, which is funded by an oil and gas windfall.

California ranks fourth among the most populous states in terms of childcare costs over an 18-year period, with an estimated total of $312,300.

Florida and New York follow closely behind at 14th and 15th respectively, with estimated costs of $280,280 and $278,051. Texas is significantly lower down the list, ranking 39th with a cost of $229,891 over the same period.

The figures assume a married couple with two incomes, each earning $99,999, and do not take into account inflation.

Parents can significantly reduce their expenses by taking advantage of tax credits and deductions available to them. LendingTree's model assumes a federal child tax credit of $2,200 per child, up from $2,000 in previous calculations.

Claiming every eligible tax credit can provide substantial savings for families with young children. Additionally, paying down high-interest debt and adopting cost-cutting strategies such as shopping at consignment shops or using hand-me-downs can help alleviate the financial burden of raising a family.