Child care costs in the U.S. soar past $120,000 in some states by 2025
Raising a child in the U.S. has become significantly more expensive, with costs rising sharply since 2023. A 2025 study by Yahoo Finance revealed that families now need between $63,282 and $124,842 annually just to cover child care, depending on the state. The financial burden varies widely, leaving many households struggling to balance budgets and long-term savings.
Massachusetts tops the list as the most expensive state for child care, requiring a minimum income of $124,842. The average annual cost for a single child there reached $44,221 in 2025, the highest in the country. Hawaii followed closely, with families needing $119,226 to afford care, despite lower average costs of $33,363.
The latest figures highlight the growing financial strain on American families, with child care costs outpacing income growth in many regions. In states like Massachusetts and Hawaii, parents must earn well over $100,000 just to meet basic needs, while even lower-cost areas see significant expenses. Without policy changes or wage adjustments, the trend suggests continued challenges for households raising children in the coming years.
