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The cost of raising a child over 18 years has increased again, now surpassing $300,000 for the first time since 2023, according to LendingTree.

A new 2026 report from LendingTree, based primarily on 2024 data, estimates that the cost of raising a child to age 18 has risen to $303,418, a 1.9% increase from $297,674 in last year’s report, which was based largely on 2023 data.

That total breaks down to an average annual cost of $16,857 over 18 years. However, expenses during a child’s first five years declined slightly, falling 0.3% from $29,419 to $29,325, largely due to a modest decrease in day care costs.

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Day care expenses dropped by $572 annually, or 3.2%, marking the only category to see a notable decline in the latest report.

Parents in Hawaii face the highest costs of raising a young child, averaging $40,342 annually during the first five years, according to LendingTree. Maryland and Massachusetts follow at $36,419 and $34,247, respectively. Among the 10 most expensive states, only Colorado — which ranks seventh at $31,000 per year — is not located on a coast.

By contrast, costs are lowest across much of the South. Mississippi ($17,148) and Alabama ($18,019) rank as the least expensive states, while South Dakota — the only non-Southern state among the seven lowest-cost states — ranks third at $18,622.

Lower child care expenses play a significant role in those rankings. Mississippi, Alabama and South Dakota each have average annual infant day care costs below $10,000. Arkansas, the fifth least expensive state at $19,204 per year, is the only other state where infant day care costs fall below that threshold.

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