Family life

Raising children in Dallas is surprisingly affordable, study finds

Raising a family in Dallas-Fort Worth is much more affordable than in most other American cities.

For those considering starting a family, it's important to know the financial realities of raising a child. In Dallas-Fort Worth- Arlington, the annual costs of raising just one child can add up to nearly $22,000 per year.

That's according to a new annual report by SmartAsset that examined the costs of childcare across 50 of the biggest metropolitan areas in America.

DFW's total figure of $21,926 may seem like a high price tag, but raising a child in Dallas is actually more affordable than in most other U.S. metros: DFW came in at No. 16 on the list for the lowest yearly childrearing costs out of all 50 cities in the report.

According to the report, two of the biggest expenses for families in Dallas are:

$10,396 for childcare
$3,002 for additional housing

Compare that to than Boston-Cambridge-Newton, Massachusetts, which came in at No. 1 with the highest annual cost for raising a child: $37,758. The national average is $25,181 per year.

"Understanding the costs associated with raising a child is essential, not only for personal financial planning but also for shaping public policies that support family well-being," the report's author wrote. "But the costs for childcare, additional housing, food, medical necessities, and other expenses vary widely, with the total price tag adding up much higher in some places."

Childcare costs around Texas
Perhaps unsurprisingly, Austin-Round Rock-Georgetown leads as the most expensive metro area in Texas for raising a child, with annual costs adding up to $22,406. The report doesn't go in depth to explain how it came up with that amount, but it does specify that childcare costs are $10,247 per year, with $3,485 dedicated to "additional housing."

Other cities in Texas did better: Houston-The Woodlands-Sugar Land came out to $21,396, and San Antonio-New Braunfels' childcare costs were slightly less expensive, at $21,014 yearly.

To determine the rankings, SmartAsset compared the annual costs of a household with two working adults and one child to the annual costs of a childless household with two working adults. The MIT Living Wage Calculator was used to determine the cost of each city's medical expenses, transportation, food, and more. Notably, costs for schooling were not specified.

The full report can be found on smartasset.com.

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income analysis

This is the family income needed for one parent to stay home in Texas

Photo by Vitaly Gariev on Unsplash

With costs to raise a child soaring over $20,000 a year in Texas, some households might decide to have one parent work while the other stays at home to raise their child.

The cost of raising a child has ballooned in major metros like Dallas-Fort Worth, forcing many families to weight the choice between paying for child care or having one parent stay home full-time.

A recent analysis from SmartAsset determined the minimum income one parent needs to earn to support their partner staying at home to raise one child in all 50 states. In Texas, that amount is just under $75,000.

The study used the MIT Living Wage Calculator to compare the annual living wages needed for a household with two working adults and one child, and a household with one working adult, a stay-at-home parent, and one child. The study also calculated how much it would cost to raise a child with two working parents based on factors such as "food, housing, childcare, healthcare, transportation, incremental income taxes and other necessities."

A Texas household with one working parent would need to earn $74,734 a year to support their stay-at-home partner and their child, the report found. If both parents worked in the household, it would require an additional $10,504 in annual income to raise their child.

SmartAsset said the cost to raise a child in Texas in a two-working-parent household adds up to $23,587. Raising a child in North Texas, however, is slightly more affordable. A separate SmartAsset study from June 2025 determined it costs $22,337 to raise a child in Dallas-Fort Worth.

In the report's ranking of states with the highest minimum income needed to support a family with one working adult, a stay-at-home parent, and one child, Texas ranked 32nd on the list.

In other states like Massachusetts where raising a child can cost more than $40,000 a year, the report's author says families will look for ways to reduce any financial burdens.

"This often includes considerations around who’s going to work in the household, and whether young children will require paid daycare services while parents are occupied," the report said. "With tradeoffs abound, many parents might seek to understand the minimum income needed to keep the family afloat while allowing the other parent to stay home to raise a young child."

The top 10 states with the lowest minimum income threshold to support a three-person family on one income are:

West Virginia – $68,099
Arkansas – $68,141
Mississippi – $70,242
Kentucky – $70,408
North Dakota – $70,949
Oklahoma – $71,718
Ohio – $72,114
South Dakota – $72,218
Alabama – $72,238
Nebraska – $72,966

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