The Cost of Raising a Baby in the US Has Risen to New Heights

Right now, inflation, rising grocery prices, and baby essentials like strollers, car seats, and monitors—which jumped 20-40 percent in 2025 due to tariffs and have largely stayed at those elevated levels into 2026—are making parenthood costlier than ever.

That's why it's important to consider how much money you’ll spend on raising a child (during the first 18 years, at least). And if this is making you realize it's time to create a budget, we've got you there, too.

To help you get a better picture of how much it costs to raise a baby in the United States, we’ve pulled some of LendingTree’s most recent data and tapped financial experts for their insights on what to expect and how to best prepare for this next step in your life.

The total cost of raising a child, per year and from birth to age 18

The total cost of raising a child will vary based on where you live across the United States, and the resources you currently have access to. According to LendingTree, the average annual expenses required to raise a small child (minus tax exemptions or credits) for the first five years totaled $29,325 in 2026.

From the day your baby is born (not including the cost of giving birth), the experts at LendingTree found that families are projected to spend an additional $303,418 over 18 years to raise a child, averaged across all 50 states. It bears mentioning that this number has topped $300,000 for the first time since LendingTree began tracking this data in 2023. 

At the same time, annual costs in the first five years dipped slightly from last year—from $29,419 to $29,325 (or 0.3%)—mainly thanks to a small drop in day care costs.

These three states have the highest annual cost: Hawaii ($40,342), Maryland ($36,419) and Massachusetts ($34,247). Meanwhile, the states with the lowest annual cost total were Mississippi ($17,148), Alabama ($18,019) and South Dakota ($18,622).

And keep in mind that this study doesn’t include costs like college tuition or adoption or fertility costs, says Kendall Meade, certified financial planner at SoFi.

Breakdown of expenses

The LendingTree data took into consideration the cost of childcare, food, clothes, rent, transportation, health insurance premiums and state tax and exemption credits to determine how much it costs to raise a child in the US by state.

Childcare

Childcare is without a doubt the most expensive part to consider when raising a baby in the US.

Though Hawaii takes the cake in terms of being the most expensive place to raise a baby in the US, it actually doesn’t have the highest childcare costs. According to LendingTree, Massachusetts has the highest childcare costs at an average of $26,343 per year. Other close contenders include Washington, D.C. ($26,193), Maryland ($25,321), and Hawaii ($24,115).

“From the moment a baby is born until they begin preschool as a toddler, parents can expect the cost of childcare to be at the top of the list, especially when choosing options that may include a nanny, babysitter or daycare,” says Natalia Brown, chief compliance and consumer affairs officer for National Debt Relief. Even if you’re able to lower your childcare costs through things like nanny shares or co-op daycares, it’s still a large part of the pie for the first several years.

But you won’t be paying for childcare forever. “Once school begins, the costs associated with childcare may change,” Brown says. “For instance, choosing to enroll a child in public or private school.” 

It’s not a decision you’ll need to make immediately, but definitely something to consider as your little one gets closer to preschool age. The costs related to private or charter school tuition will vary based on the institution, while public school and homeschooling are guaranteed to be lower-cost options (and even completely free in some cases, if you qualify for financial assistance).

Food

Babies need to eat, and that can be expensive—whether you’re buying baby formula, stocking up on pumping supplies or keeping up a rotation of nursing accessories, the price can add up. Then at around six months old, your baby will start on solid food. You can count on restocking your fridge and pantry on a weekly basis, and the cost of an extra mouth to feed can really add up between the prices of fruits, vegetables, baby food and other pantry staples.

Across the US, the highest food costs are in Hawaii, Alaska, New York, Massachusetts, Washington state and Washington D.C. And if you live in a more metropolitan area, your food costs are going to be higher there as well.

Clothes

Aside from food and shelter, you need to make sure your baby is appropriately dressed. Although LendingTree’s data estimates the average price of clothing at $313 per year, don’t be surprised if you end up spending more than that per year regardless of where you live—and even that is an extremely “optimistic” number, says David Johnston, certified financial planner and managing partner of Amwell Ridge Wealth Management.

One way to save money is by buying clothes that will last through multiple kids (or asking for hand-me-downs from friends and family). Some of the best baby clothing brands will stretch over a few growth stages and will still look great even as they’re passed down.

Rent

If you add a member to the family, then you might need to upgrade to a larger space—which is likely to raise your total rent. California and Hawaii have the most expensive average rental prices.

You might luck out if you live in the South, because that’s where the least expensive states to raise a young child are—Mississippi, Alabama and Arkansas. And despite not being in the South, South Dakota is also on the lower side.

Transportation

The cost of transportation is another factor to take into consideration when raising a baby. This calls for the purchase of not only a car seat (or even multiple car seats, depending on how many vehicles you have and if you opt for a new car seat for every stage versus going with an all-in-one car seat from the beginning), but potentially extra plane tickets for cross-country and international travel. LendingTree’s latest data shows that Alaska has the highest annual transportation costs at $3,318. 

States that fall lower in this category include Washington D.C., New York, New Jersey and Illinois.

Health Insurance Premiums

A new addition to the family will also include an increase in your health insurance plan, as another dependent now needs coverage. Compared to LendingTree's 2023 study, health insurance premiums have increased on average by 26 percent, regardless of where you live. In 2026, Ohio has the lowest health insurance premium cost at $2,101 per year. West coast states Washington and California are on the high end, averaging $4,473 and $5,254 respectively.

How expenses might change as your child grows

As your little one grows up, how you spend your money on them will change to keep up with their growing mind and body. And especially going into the teenage years, there are additional expenses to keep in mind.

“Parents can expect an increase in their child’s needs and interests as they begin to participate in extracurricular activities or sports—even being part of a sports team at school comes with costs for uniforms, equipment and travel to games,” Brown says. “Additional costs, especially when raising a teenager, may include providing them with a cellphone, giving them an allowance or budget for when they hang out with friends and adding them to the car insurance plan when they start driving. Of course, we can’t forget the birthday gifts either.”

And even though college may seem like a long way off, it’s a good idea to start considering the costs of higher education. In other words, it’s never too early to start saving.

Making your money go further

State Tax Exemptions/Credits

You may be in luck if you live in a state that provides tax exemptions or credits to those with children. California’s Young Child Tax Credit, for instance, provides up to $1,189 per year to low-income families, making it one of the highest state child tax credits in the US. Other states with a hefty tax credit include Minnesota, Colorado, New Jersey, Oregon, Utah and Vermont.

On the other hand, some states don’t offer any kind of child-related tax credit, including Washington, Connecticut, Alaska, Nevada and New Hampshire, to name a few.

If your state doesn’t offer any financial assistance, or if you don’t qualify for income-based assistance, our financial experts have a couple other recommendations for ways you can save some money for your child (and for yourself).

Open a Dependent Care Flexible Spending Account

Childcare can be a huge expense, but some jobs offer benefits that can help. The financial experts we talked to all recommend opening up a Dependent Care Flexible Spending Account, as it’s a great way to lower your annual tax bill while paying out-of-pocket child care related expenses.

“If your job offers a dependent care flexible spending account, this can allow you to use pre-tax dollars to pay for eligible dependent care expenses,” Meade says. The contribution limit for 2026 is $7,500, “which is likely less than what your true costs are, but (depending on your tax bracket) that could save you over a thousand dollars on taxes.”

Consider a 529 Plan

If saving for college is a goal, a 529 plan can be a great tool. “529 plans grow tax-deferred, and withdrawals are tax-free if they're used for qualified education expenses,” says Meade.

“Opening and annually funding a 529 education savings plan is a great way to save for future education expenses,” says Vincent Birardi, a wealth advisor at Halbert Hargrove. “Plus, in many states, you may qualify for a tax writeoff if you participate in your state’s sponsored 529 plan.”

Another savings option worth looking into is a 530A (aka Trump account), an investment account for eligible babies born in the US. Babies born between January 1, 2025 and December 31, 2028 are eligible for a one-time $1,000 government seed deposit into a tax-advantaged investment account, with parents, family, and employers able to contribute up to $5,000 annually combined until the child turns 18. Funds grow tax-deferred but can't be touched until the child turns 18, when the account converts to a traditional IRA—functioning similarly to a retirement account including the penalties for withdrawing early.

And you might want to explore Babylist’s Early Investor tool, which makes it easy for loved ones to contribute to a child’s 529 plan or 530A. You can create a fund and link your 529 or 530A, then share it with your nearest and dearest who can give a gift that grows over time. 

Ultimately, there’s no doubt that the cost of raising kids is expensive. That said, it can be helpful to remember that the dollars spent are actually an investment into building a life and sharing memories with people you love.