A study found Maryland is the third most expensive state to raise a child. Here’s how much it costs.

A new report by LendingTree found that Maryland is the third most expensive state to raise a child in, with families projected to spend $326,360 on the endeavor over 18 years. 

According to the 2026 report, which draws on data and statistics from 2024, the cost of raising a child over 18 years topped $300,000 for the first time since the company began tracking in 2023. The 18-year cost in the U.S. has increased to an annual average of $303,418, after tax exemptions and credits, the report shows.  

The analysis also found that the costs of raising a child during the first five years have decreased due to slight drops in daycare costs. 

Costs of raising a child in the U.S. 

By looking at child-specific expenses and household expenses that can be impacted by children, like rent, transportation and health insurance costs, LendingTree determined that Hawaii is the most expensive state to raise a child, with an average 18-year cost of $412,661.

Alaska is the second most expensive state to raise a child, with costs of $365,047, the study found. 

New Hampshire is the least expensive, at $201,115. Despite its proximity to Maryland, Washington, D.C. had the second-lowest 18-year cost at $205,115.   

Maryland is one of six U.S. states where families are projected to spend more than $300,000 to raise a child over 18 years, according to the LendingTree analysis.

The study also found that families in the U.S. spend an average of 21% of their income on raising a child. In D.C., that number was determined to be 13.9%, the lowest among the states. 

5-year costs of raising small children

According to the report, rent, daycare for infants, and transportation are among the highest costs. The overall cost of raising a small child increased by 15% in the last year, from $31,601 in 2025 to $36,419 in 2026. 

Maryland is the second most expensive when it comes to five-year costs at about $36,419, and Massachusetts follows with a five-year cost of $34,247. Hawaii is first with five-year costs reaching $40,342, the study found. 

LendingTree, an online lending marketplace, offered the following tips for parents navigating the costs of raising children: 

• Start saving as soon as possible with a high-yield savings account
• Take advantage of workplace and government benefits, like flexible spending accounts (FSA) and tax credits
• Remind yourself that more expensive is not always better; shop at consignment stores or check the clearance rack for bargains
• Address high-interest debt as soon as possible