You need this much money to 'comfortably afford' childcare in New York, New Jersey
FUYANG, CHINA - JANUARY 30, 2026 - US dollar banknotes captured in Fuyang City, Anhui Province, China on January 30, 2026. (Photo credit should read CFOTO/Future Publishing via Getty Images)
NEW YORK CITY - Working parents need childcare, but as costs skyrocket across the United States, the options are becoming even more limited.
By the numbers:
A recent study states that the average annual cost of childcare for an infant and a 4-year-old in the U.S. is currently $28,190.
Childcare is considered affordable when a household spends only 7% of its income, according to the U.S. Department of Health and Human Services.
In order to meet both standards, a household needs to earn an average of $403,708 a year — which is 176.5% higher than the average income of a family with two kids.
Local perspective:
That gap becomes even wider when costs are broken down by state, with both New York and New Jersey ranking above the national average.
New York was named the 15th highest with a 217.6% difference:
- Average childcare costs for an infant and 4-year-old: $37,782
- Income needed to comfortably afford childcare: $539,743
- Average income for households with two kids: $169,968
New Jersey's difference was slightly lower at 180.4%, making it the 24th highest:
- Average childcare costs for an infant and 4-year-old: $37,716
- Income needed to comfortably afford childcare: $538,800
- Average income for households with two kids: $192,156
How much money you need to 'live comfortably' in NYC
New Yorkers need to make $63,000 more than residents in Houston, Texas, if they want to live "comfortably," according to a new study.
Big picture view:
New York and New Jersey's numbers aren't even the highest!
Hawaii households need to earn 269.7% more than the average income to afford childcare, followed closely by Nebraska at 263% and Montana at 257.8%.
Families in South Dakota come the closest to affording child care, but still need 95.4% more than the state's average income.
Tips to afford childcare
What you can do:
Experts say families have several tools and strategies they can use to help make childcare more affordable:
- Ask your employer about childcare-related benefits
- Research federal, state and local assistance programs, such as universal pre-K and the Child and Dependent Care Tax Credit
- Compare alternative care, like nanny shares, co-ops and part-time preschool slots
- Adjust schedules to reduce total hours in care
- Ask about payment flexibility, sibling discounts or sliding-scale fees
The Source: Information for this article was provided by LendingTree.