Raising A Child Now Costs About $303,000: Study

Authored by Jill McLaughlin via The Epoch Times,

Parents who start raising a child in 2026 will spend around $303,418 from birth to 18 years old, according to a study published April 6 by Lending Tree. The cost increased 1.9 percent from last year.

The average annual cost works out to about $16,857 over 18 years, pushing this year’s estimate over $300,000 for the first time since Lending Tree began calculating it in 2023, the online loan marketplace reported.

Hawaii is the most expensive state to raise a small child, as yearly costs reached $40,342 for the first five years, the report said. Raising a child for 18 years in Hawaii is projected to cost $412,661. The next most expensive state is Alaska at $365,047, followed by Maryland at $326,360.

Parents in the Aloha State are projected to spend more than 27 percent of their yearly income on raising a small child. Nebraska and Indiana follow closely with 23 percent. In all, parents in 22 states should expect to spend at least 20 percent of their yearly income on raising a small child, the report stated.

Maryland at $36,419 and Massachusetts at $34,247 were the second and third-most costly states per year for young children. California came in fourth highest with a yearly cost of $33,692. Insurance premiums in California were the highest of the four top states at an average of $5,254 per year.

The differences between some coastal states are substantial. Raising a child in California will now cost an average of $312,300, compared with Florida, where it costs $280,280, the study showed.

States with the lowest annual costs to raise a small child were Mississippi ($17,148), Alabama ($18,019), and South Dakota ($18,622).

Florida ranked 27th with a nearly $25,000 annual price tag to raise a small child, while Texas ranked 45th at just about $21,000.

Costs to raise a small child rose by about 10 percent or more in 14 states from 2025 to 2026. In four of those states, prices jumped by at least 20 percent, according to Lending Tree. Those included Nebraska, where costs increased 27.4 percent, and in Montana (24.5), Maine (24.4), and Wisconsin (23.3).

The largest overall cost increases were found in rental costs, which jumped by nearly 50 percent, and girls’ clothing, which jumped by nearly 27 percent.

President Donald Trump, joined by Republican lawmakers, signs the One Big Beautiful Bill Act into law during an Independence Day military family picnic on the South Lawn of the White House on July 4, 2025. Samuel Corum/Getty Images

Cost savings were found in a 10 percent increase in the child tax credit provided by the One Big Beautiful Bill Act. This resulted in $200 in savings each year.

The annual cost for the first five years of a child’s life decreased by about $94 from $29,419 to $29,325, or about 0.3 percent, because of a small dip in day care costs, according to the report.

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