San Antonio ranks among 50 best cities to retire in the U.S. in 2026

With child-rearing costs in the Lone Star State adding up to tens of thousands of dollars per year, many Texas families are navigating a difficult decision: should both parents work or should one parent stay home to raise the child?

For Texas families that choose the latter, the working parent needs to make nearly $73,000 per year to support their child and the stay-at-home parent, a new income analysis has revealed.

The newly released SmartAsset report used MIT's Living Wage Calculator to estimate the annual living wages needed across all 50 states for a three-person household with two working adults and one child, and a family with one working adult, a stay-at-home parent, and one child. Costs included food, housing, childcare, healthcare, transportation, incremental income taxes, and "other necessities."

A Texas household with one working parent needs to make $72,925 to support their stay-at-home counterpart and their child, the study found. That's $1,809 less than what was needed in 2025.

Meanwhile, the combined income needed for a household with one child and both parents working full-time is $85,030.

Texas ranked No. 42 in SmartAsset's ranking of states with the highest minimum income needed to support a family with one working parent, one stay-at-home parent, and one child. That also situates Texas as the 9th most affordable state for single-income families. But there are risks associated with only having one breadwinner in the family.

"A single-income family with small children potentially saves in child care costs over a household with two working parents," the report's author wrote. "The main disadvantages are the lost salary and retirement contributions, Social Security earnings history, and employer health benefits."

There aren't any specific tax benefits to having a parent stay at home to raise their child full time, but SmartAsset says single-income families can claim a tax credit under the One Big Beautiful Bill Act.

"[S]ingle-income families may claim the Child Tax Credit — up to $2,200 per qualifying child for 2026 ($1,700 refundable) — on the same terms as any other family," the report said.

SmartAsset's latest report only looks at costs on a statewide basis, but the cost to raise a child will also vary greatly depending on the city you live in. Raising a child in San Antonio is certainly more affordable than other Texas cities; childcare costs in the Alamo City add up to $9,560, and overall costs are just over $21,000. But in other expensive cities, like Austin, the cost to raise a child can add up to about $25,000.

For households with two children, there might be additional strains on what a family might consider a "comfortable living." A March 2026 SmartAsset study determined a San Antonio family with two working parents needs to make a combined income of $192,608 to have a financially stable life while raising two children.

The top 10 states with the lowest minimum income needed for single-income families are:

• Arkansas ($68,869)
• Mississippi ($70,054)
• Kentucky ($70,179)
• West Virginia ($70,283)
• North Dakota ($71,219)
• Oklahoma ($71,365)
• Louisiana ($71,406)
• Missouri ($72,862)
• Texas ($72,925)
• Tennessee ($72,946)