WILLIAMSON, W.Va. — Kaitlyn Adkins is studying law to help families in her community impacted by the opioid epidemic at the heart of West Virginia coal country.
People are also reading…
States Spending the Most on Childcare
Daycare and preschool prices have risen much faster than the general market
Over the past two decades, childcare costs have risen much faster than overall prices. Between 2000 and 2021, prices for all goods and services increased by 76%, while prices for daycare and preschool climbed by nearly 120%. Today, American families with children 13 and under spend a median $6,000 (or 5.3% of their income) on childcare annually, according to data from the Census Bureau’s Current Population Survey.
The expanded Child Tax Credit, part of the American Rescue Plan, increased the Child Tax Credit from $2,000 to either $3,600 (for children under age 6) or $3,000 (for other children under age 18 in 2021). The American Rescue Plan also increased the Child and Dependent Care Tax Credit, which helps to offset childcare expenses, up to $5,900 or higher. However, while there is federal support to renew these credits, starting in 2022, both credits have reverted to previous levels while many families are facing large childcare costs, record-high inflation, and other economic uncertainties.
Residents of Alaska and Minnesota spend the most on childcare
While median annual childcare spending is $6,000 overall among families with kids 13 and under, childcare costs vary across the U.S. In certain states, median annual childcare spending tops $9,000. Families with children 13 and under in Alaska and Minnesota spend $9,600 and $9,400, respectively, on childcare expenses. Meanwhile, childcare is much more affordable in other parts of the country such as West Virginia where families spend just $3,000 on annual childcare expenses.
Minorities and low income households are disproportionately burdened by childcare costs
High childcare costs have disproportionate impacts on low-income families and racial minorities, many of whom allocate significantly more than 7% of their income to childcare—the threshold used by the U.S. Department of Health and Human Services to assess childcare affordability. American Indian and Alaskan Native families spend 8.5% of their income on childcare while non-Hispanic White families spend 5% and Asian families spend just 4.6%. Households earning less than $25,000 spend nearly 17% of their income on childcare while households earning $100,000 or more spend just 4.3%.
To determine the states with the most and least affordable childcare, researchers at HowtoHome.com analyzed the latest data from the U.S. Census Bureau’s Current Population Survey. The researchers ranked states according to the median share of household income spent on childcare, among households with children 13 and under who spent money on childcare. Researchers also calculated median annual childcare spending and median annual household income for the same group of households.
15. Pennsylvania
Photo Credit: Sean Pavone / Shutterstock
- Share of income spent on childcare: 5.6%
- Median annual childcare spending: $6,000
- Median annual income: $100,501
14. Tennessee
Photo Credit: Sean Pavone / Shutterstock
- Share of income spent on childcare: 5.7%
- Median annual childcare spending: $4,800
- Median annual income: $77,313
13. Florida
Photo Credit: Henryk Sadura / Shutterstock
- Share of income spent on childcare: 6.0%
- Median annual childcare spending: $5,000
- Median annual income: $75,681
12. Louisiana
Photo Credit: Sean Pavone / Shutterstock
- Share of income spent on childcare: 6.0%
- Median annual childcare spending: $5,180
- Median annual income: $72,501
11. Georgia
Photo Credit: Sean Pavone / Shutterstock
- Share of income spent on childcare: 6.0%
- Median annual childcare spending: $5,200
- Median annual income: $74,041
10. Texas
Photo Credit: ShengYing Lin / Shutterstock
- Share of income spent on childcare: 6.2%
- Median annual childcare spending: $6,000
- Median annual income: $81,816
9. South Dakota
Photo Credit: Jacob Boomsma / Shutterstock
- Share of income spent on childcare: 6.3%
- Median annual childcare spending: $6,300
- Median annual income: $100,027
8. North Dakota
Photo Credit: Jacob Boomsma / Shutterstock
- Share of income spent on childcare: 6.3%
- Median annual childcare spending: $6,600
- Median annual income: $95,048
7. Virginia
Photo Credit: Sean Pavone / Shutterstock
- Share of income spent on childcare: 6.4%
- Median annual childcare spending: $9,000
- Median annual income: $105,100
6. Iowa
Photo Credit: Jacob Boomsma / Shutterstock
- Share of income spent on childcare: 6.5%
- Median annual childcare spending: $6,500
- Median annual income: $100,000
5. Alaska
Photo Credit: Marcus Biastock / Shutterstock
- Share of income spent on childcare: 6.5%
- Median annual childcare spending: $9,600
- Median annual income: $90,200
4. New York
Photo Credit: Lukas Uher / Shutterstock
- Share of income spent on childcare: 6.6%
- Median annual childcare spending: $8,320
- Median annual income: $100,000
3. Massachusetts
Photo Credit: Roman Babakin / Shutterstock
- Share of income spent on childcare: 6.7%
- Median annual childcare spending: $7,200
- Median annual income: $120,081
2. Alabama
Photo Credit: Rob Hainer / Shutterstock
- Share of income spent on childcare: 6.8%
- Median annual childcare spending: $6,000
- Median annual income: $75,000
1. North Carolina
Photo Credit: Jon Bilous / Shutterstock
- Share of income spent on childcare: 7.1%
- Median annual childcare spending: $6,400
- Median annual income: $87,126
