SmartAsset today released a new study that finds the annual cost of raising a child in Arizona now stands at $26,624.

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Among the study’s key findings

  • Arizona’s average child-rearing cost ranks it No. 26 nationally. 
  • The cost of raising a child in Arizona has increased 0.13% since 2024, relative to a national average increase of 4.5 percent.
  • Massachusetts is the most expensive state in which to raise a child, with the annual cost of raising a preschooler now topping $44,000.

In 2025, the average annual cost of raising a child under five in the United States reached $27,743. These costs – which cover additional housing, food, transportation, healthcare, miscellaneous items and childcare for a working couple – rose 4.5% between 2024 and 2025, slightly outpacing the 2.82% inflation rate during the same timeframe. But costs vary by up to tens of thousands of dollars in either direction depending on the state a family calls home, and some states saw large swings in the cost of raising a child over just one year.

With this in mind, SmartAsset ranked 50 states based on the estimated additional annual income needed by two working adults to support a child under five years old.

Key Findings

  • The cost of raising a child in Massachusetts now tops $44,000 per year. Two working parents in the Bay State should aim to earn at least $124,842 between them to support themselves and a preschooler, versus $80,621 for just themselves. In just one year, the cost of raising a child increased 5.72% from $41,828 to $44,221.
  • Vermont and New Jersey join the top 10 most expensive states to raise a child. Vermont ranked third most expensive for raising a child this year, up from 11th just a year prior. The estimated annual cost jumped from $30,542 to $38,272, the highest increase nationwide. Meanwhile, New Jersey jumped from 13th last year to fifth this year, with an increase from $30,184 to $35,069.
  • The cost to raise a child remains below $20,000 per year in one state. Mississippi remains the most affordable state to raise a child, despite a 10% increase in costs year over year. The estimate now sits at $19,178 per year. Alabama ($20,550); Kentucky ($20,758); South Dakota ($21,174); and Georgia ($21,299) are also among the least expensive states for raising a child.
  • This year, it became more affordable to raise a child in 10 states. Despite double-digit percentage increases in other states, parents saw lower costs in 20% of the U.S. Costs in Hawaii declined the most, dropping $8,116 year over year. Costs also dropped in Delaware (-$4,792); Iowa ($-3,667); Michigan (-$2,772); Nevada ($-2,480); New York (-$1,551); Georgia (-$1,407); North Carolina (-$570); Alabama (-$51); and Arizona (-$35).