Raising a child in the United States now costs more than $300,000, adding to the financial pressure many families are already facing.
The report, published April 6, found that parents who begin raising a child in 2026 will spend about $303,418 over 18 years, up 1.9% from last year’s estimate of $297,674. It is the first time the total has crossed the $300,000 mark since LendingTree began tracking the data in 2023.
The increase comes even after tax credits and exemptions that were meant to ease costs for families. On average, that works out to about $16,857 per year. The study, which primarily used data from 2024, also found that the overall cost of raising a child has climbed 27.8% since 2023.
Costs vary widely depending on where families live across the country. Hawaii ranked as the most expensive state, with a projected total cost of $412,661 over 18 years. Parents there spend an average of $40,342 per year during a child’s first five years.
Alaska followed at $365,047, with Maryland at $326,360.
Maryland and Massachusetts were also among the most expensive states for young children, with annual costs of $36,419 and $34,247.
The gap between states remains significant. Raising a child in California now costs an average of $312,300 over 18 years, compared with $280,280 in Florida. California also has some of the highest insurance costs, averaging $5,254 per year.
Some parts of the country remain far more affordable. Mississippi had the lowest annual cost to raise a young child at $17,148, followed by Alabama at $18,019 and South Dakota at $18,622. Florida ranked 27th with yearly costs near $25,000, while Texas ranked 45th at about $21,000.
The financial burden on families is also growing. In Hawaii, parents are expected to spend more than 27% of their yearly income raising a small child, while Nebraska and Indiana follow at about 23%. Overall, families in 22 states are projected to spend at least one-fifth of their income on early childhood costs.
Costs have risen sharply in several states from 2025 to 2026. Fourteen states saw increases of about 10% or more, and in four states, the jump exceeded 20%. Nebraska saw the largest increase at 27.4%, followed by Montana at 24.5%, Maine at 24.4%, and Wisconsin at 23.3%.
Housing and clothing continue to drive much of the increase. Rental costs rose by nearly 50%, while girls’ clothing costs increased by almost 27%, according to the report.
There was some limited relief. A 10% increase in the child tax credit under the One Big Beautiful Bill Act reduced annual costs by about $200. The report also found that the yearly cost during the first five years of a child’s life dipped slightly, falling by about $94 due to a small decline in day care expenses.
Even with those changes, the overall trend remains upward. For many American families, the cost of raising a child continues to climb, with the total now firmly above $300,000.