These states are hit hardest by child care costs, new data shows

For millions of American families, the cost of child care remains one of the largest financial challenges, consuming a significant share of household income and forcing many parents to make difficult decisions about work and family.

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But some states have more affordable child care than others.

To determine where child care is most and least affordable, financial data company WalletHub compared the costs of both family-based and center-based child care in each state, adjusting those expenses against median household income.

Single parents may spend 59% of their earnings on child care

By the numbers:

The data found that married couples spend nearly 14% of their household income on child care, while single parents can devote as much as 59% of their earnings to care expenses. 

Nebraska was the most expensive state for child care, followed closely by California and New York. (Credit: Getty Images)

According to the Bureau of Labor Statistics, 66.3% of families with children have both parents employed, making child care a necessity for millions.

What they’re saying:

“It costs a lot of money to take care of a child’s needs, and many parents are left with the dilemma of whether to forgo one salary to do their own child care for the first few years or to shell out a significant chunk of their income for child care services,” Chip Lupo, a WalletHub analyst, said in a statement.

Nebraska most expensive state for child care

Dig deeper:

Nebraska ranked as the nation’s most expensive state for child care relative to income. Married couples spend between 10.7% and 13.6% of their median household income on child care, depending on whether they choose family-based or center-based care. Single parents faced an even heavier burden, spending between 32.2% and 41% of their income.

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While Nebraska’s household incomes ranked near the middle nationally, the state had the fifth-most expensive family child care and the third-costliest child care centers.

California placed second on the list. Married couples spend between 10.6% and 13.6% of their median household income on child care despite the state having the nation’s 12th-highest median income for married households at $144,216 annually. 

New York ranked third, with married couples spending approximately 10.9% to 13% of their household income on child care. Although New York has the nation’s 11th-highest median income for married couples at $145,321, single-parent households earn considerably less, with a median income of $41,337– ranking 24th nationally.

States with highest, lowest cost of child care for married couples

1. Nebraska
2. California
3. New York
4. Oregon
5. Washington
6. Wisconsin
7. Montana
8. Massachusetts
9. New Mexico
10. Hawaii

Read the full report here.

Child care costs soar

Big picture view:

Last year, the same study found that New York had the most expensive child care, costing around 11%-13% of the median income for married couples. New Mexico had the second-highest child care costs.

RELATED: Child care now costs more than a mortgage, study finds

In 2024, a Zillow’s analysis also found that a mortgage payment and child care were taking up at least 66% of an average household’s monthly income in 31 of the 50 cities analyzed.

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