Editor’s Note: This story originally appeared on How to Home.
The last few years have been tough on working parents. Policymakers expanded the Child Tax Credit in 2021 to provide additional financial assistance for families with kids, but Congress has let the payments revert to previous levels.
Over the past two decades, child care costs have risen much faster than overall prices. While median annual child care spending is $6,000 overall among families with kids 13 and under, child care costs vary across the U.S.
High child care costs have disproportionate impacts on low-income families and racial minorities, many of whom allocate significantly more than 7% of their income to child care — the threshold used by the U.S. Department of Health and Human Services to assess child care affordability.
To determine the states with the most and least affordable child care, researchers at HowToHome analyzed the latest data from the U.S. Census Bureau’s Current Population Survey. See how this study was conducted by reading the last (Methodology) slide.
15. Pennsylvania
Share of income spent on child care: 5.6%
Median annual child care spending: $6,000
Median annual income: $100,501
14. Tennessee
Share of income spent on child care: 5.7%
Median annual child care spending: $4,800
Median annual income: $77,313
13. Florida
Share of income spent on child care: 6.0%
Median annual child care spending: $5,000
Median annual income: $75,681
12. Louisiana
Share of income spent on child care: 6.0%
Median annual child care spending: $5,180
Median annual income: $72,501
11. Georgia
Share of income spent on child care: 6.0%
Median annual child care spending: $5,200
Median annual income: $74,041
10. Texas
Share of income spent on child care: 6.2%
Median annual child care spending: $6,000
Median annual income: $81,816
9. South Dakota
Share of income spent on child care: 6.3%
Median annual child care spending: $6,300
Median annual income: $100,027
8. North Dakota
Share of income spent on child care: 6.3%
Median annual child care spending: $6,600
Median annual income: $95,048
7. Virginia
Share of income spent on child care: 6.4%
Median annual child care spending: $9,000
Median annual income: $105,100
6. Iowa
Share of income spent on child care: 6.5%
Median annual child care spending: $6,500
Median annual income: $100,000
5. Alaska
Share of income spent on child care: 6.5%
Median annual child care spending: $9,600
Median annual income: $90,200
4. New York
Share of income spent on child care: 6.6%
Median annual child care spending: $8,320
Median annual income: $100,000
3. Massachusetts
Share of income spent on child care: 6.7%
Median annual child care spending: $7,200
Median annual income: $120,081
2. Alabama
Share of income spent on child care: 6.8%
Median annual child care spending: $6,000
Median annual income: $75,000
1. North Carolina
Share of income spent on child care: 7.1%
Median annual child care spending: $6,400
Median annual income: $87,126
Methodology
To find the states spending the most on child care, researchers at HowToHome.com analyzed the latest data from the U.S. Census Bureau’s 2022 Current Population Survey Annual Social and Economic Supplement.
The researchers ranked states according to the median share of household income spent on child care.
In the event of a tie, the state with the larger median annual child care spending was ranked higher. Researchers also calculated the median annual household income.
Marilyn Lewis
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