A recent study conducted by DeMayo Law, a personal injury law firm based in North Carolina, has revealed the states where parents are spending the highest and lowest percentages of their income on center-based childcare. The findings — gleaned from information from the National Database of Childcare Prices (NDCP) and the Bureau of Labor Statistics (BLS) for the year 2023 — shed light on the financial burden faced by families across the United States, emphasizing the need for accessible and affordable childcare solutions.
Massachusetts leads the nation with parents spending an average of 30.29% of their annual income on center-based childcare. The state’s average annual cost for childcare is $18,380, while the median annual income is $60,690. Infants in Massachusetts require the highest expenditure, with parents paying an average of $23,191 annually, which is 38.21% of the state’s median income.
In New York, families allocate an average of 30.12% of their annual income to childcare, with an average annual cost of $17,119. The median annual income stands at $56,840. Notably, New York ranks first in the United States for preschool and school-age childcare costs, with parents spending 28.39% and 25.34% of their income on these services respectively.
Nevada ranks third, with parents spending 29.25% of their income on childcare. The average annual cost is $13,106, against a median income of $44,810. Nevada is ranked second for both preschool and school-age childcare costs, consuming 27.91% and 23.39% of annual income respectively.
Families in Hawaii spend an average of 28.87% of their income on childcare services, with an average annual cost of $14,584. The median income in Hawaii is $50,510. The cost for infant and toddler care is particularly high, both at 41.95% of median income, the highest percentages nationwide.
Minnesota parents spend 28.37% of their annual income on childcare, with an average cost of $14,435. The state’s median income is $50,880. Infant care requires 34.90% of the median income, while toddler care consumes 30.28%.
Said Michael DeMayo, founder of DeMayo Law, of the findings:
“The high cost of childcare is a significant burden for many families, impacting their financial stability and overall well-being. Parents in states like Massachusetts and New York are dedicating nearly a third of their income to childcare expenses, which can limit their ability to save for the future or cover other essential needs.
“It’s crucial for families to explore all available resources, such as state assistance programs or employer-sponsored childcare benefits. Additionally, policymakers should consider steps to make childcare more affordable and accessible, ensuring that parents don’t have to choose between their careers and quality care for their children.”
