Texas Ranks in middle for childcare affordability as national costs soar

Texas families fare better than most when it comes to childcare costs, ranking in the middle of states nationwide as expenses continue climbing across the country, according to a new WalletHub analysis.

Married couples in Texas spend between 8.19% and 9% of their median annual income on childcare, depending on whether they choose family-based care or center-based daycare. Single parents face a much steeper burden, shelling out 26.39% to 29.02% of their income for the same services.

The findings place Texas 31st among states for married-couple affordability and 27th for single parents — a middle-of-the-pack position that contrasts sharply with more expensive coastal states.

“Childcare costs may exceed what some families pay in rent,” said Lori Latrice Martin, associate dean and professor at Louisiana State University. “The causes for the increase in childcare include the lingering effects of the COVID-19 pandemic, operational costs, limited public funding, and declines in available childcare options.”

Nationally, married couples working full time can expect to spend as much as 13% of their earnings on childcare, while single parents may pay an “astounding” 51%, according to WalletHub analyst Chip Lupo.

The personal finance website analyzed childcare prices across all 50 states and adjusted them by median income to determine affordability. The study examined both family-based care provided in private homes and center-based daycare facilities.

New York topped the list as the most expensive state, with married couples spending 11% to 12.8% of median income on childcare. Single parents there face costs of 38.4% to 44.7% of their earnings.

At the other end of the spectrum, South Dakota offers the most affordable childcare, requiring just 5.03% to 6.66% of married couples’ income and 15.62% to 20.71% for single parents.

The cost increases have accelerated in recent years. Data from the Bureau of Labor Statistics show daycare and preschool prices jumped more than 20% from 2020 to 2024, according to Steven Meyers, a professor at Roosevelt University and financial psychologist.

“This increase is worsened by higher amounts of inflation that occurred for part of this period,” Meyers said. “Some of this cost increase reflects factors like supply and demand, increasing facility costs, staffing shortages, inflation, and wage increases for child care workers.”

The financial pressure is reshaping family decisions across the country. Both parents work in 66.5% of families with children, according to Bureau of Labor Statistics data, making childcare essential for millions of households.

“High childcare costs are certainly influencing family planning decisions among young couples,” Martin said. “They are having to decide how to create or adjust their work schedules so that they can earn enough to pay for childcare along with their other expenses.”

Some couples are choosing to have one parent leave the workforce entirely, while others are limiting family size or moving in with relatives to reduce expenses, Martin noted.

The affordability crisis has prompted calls for government intervention. Martin suggested local authorities could provide grants to childcare providers, offer tax incentives and continue subsidizing care for low-income families.

“Different levels of government can reduce child care costs in partnership with each other,” Meyers said, pointing to federal programs like Head Start and block grants distributed to states for local administration.

For Texas families, the state’s middle-tier ranking provides some relief compared to more expensive markets, though childcare remains a significant household expense even in more affordable states.

The WalletHub study analyzed data collected as of June 3, 2025, from the U.S. Census Bureau and Child Care Aware of America.