Child care takes a bigger bite out of households’ paychecks

Summary

• In September 2026, average child care payments accounted for 8% of total household pay.
• Child care costs represented 8.6% of pay for lower- and middle-income households compared to 7.3% for higher-income families.
• The 8% average cost exceeds the federal affordability benchmark of 7% of family income.
• Child care costs eased slightly from 2025 levels for all income groups.
• Households in high-cost areas or those paying over $2,000 monthly face a heavier financial burden.
• Nashville led year-over-year median child care payment growth in September.
• Jacksonville, FL and Phoenix followed Nashville in median payment growth.
• Payment growth slowed most in New York and Washington, DC.
• Data originates from aggregated, anonymized Bank of America transaction records of active US households making at least five consumer card transactions monthly.
• The report was published on 26 October 2026 by the Bank of America Institute.