For many U.S. families, paying for childcare can take a significant bite out of the household budget.
A new ConsumerAffairs analysis found families nationwide would need to earn about $205,000 a year for full-time, center-based toddlercare to meet a federal affordability benchmark. That figure is more than twice the 2024 median family income of $99,999.
Nationwide, average toddlercare costs account for 14.3% of median family income, more than double the 7% affordability benchmark previously established by the Department of Health and Human Services.
High childcare costs can affect more than household budgets. Experts told ConsumerAffairs that families may respond by cutting other expenses, having fewer children or leaving the workforce.
“The system may appear more functional than it is because families are absorbing much of the instability themselves,” Brittany Walsh, senior associate director at the Bipartisan Policy Center, told ConsumerAffairs.
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Where it’s most costly
Massachusetts tops the list. Families in the state need an estimated $349,543 in annual household income for toddlercare to meet the 7% benchmark. Full-time care costs an average of $24,468 a year, or $2,039 a month.
Vermont ranks second at $294,586 in required income, followed by Oregon at $293,814, Washington at $293,486 and Hawaii at $283,314.
Oregon has the highest childcare costs relative to median family income. Average toddlercare consumes 20.1% of median family income in the state, meaning a typical household would need to nearly triple its income for care to reach the 7% threshold.
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Where it’s least costly
Mississippi has the lowest estimated income needed to afford toddlercare, at $92,743. Still, that is almost $20,000 higher than the state's median family income of $73,163.
West Virginia ranks second-lowest at $121,986, followed by Alabama at $123,514, South Dakota at $126,557 and Arkansas at $127,614.
Mississippi also has the lowest average annual toddlercare cost in the analysis, at $6,492. Even so, that represents 8.9% of median family income, showing lower childcare prices do not necessarily make care affordable for typical households.
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Other expenses affected
Childcare also can cost more than other major household expenses. ConsumerAffairs found annual toddlercare costs more than average in-state tuition at a four-year public college in 37 states. Nationally, toddlercare costs about 35% more than average in-state public college tuition.
Childcare costs are lower than median mortgage and rent payments in most states.
The analysis used 2025 state averages for full-time, center-based toddlercare from Child Care Aware of America. ConsumerAffairs calculated the income needed for care to represent 7% of household income by dividing each state's annual childcare cost by 0.07.
New Mexico was excluded because it started to offer universal no-cost childcare to residents late last year. Colorado and South Carolina did not report 2025 childcare costs, so their figures were estimated using the national year-over-year change in childcare costs.
