Child Care Expense Deduction
Child care deduction limits, who claims it, and what counts.
The short version
- Child care paid so you could work, run a business, go to school or do funded research is deductible on line 21400, using form T778.
- Limits per child: $8,000 under age 7, $5,000 for ages 7 to 16, $11,000 for a child eligible for the disability tax credit. Total also capped at two-thirds of your earned income.
- In a two-parent home, the lower-income parent usually has to claim it, with a few exceptions.
- Daycare, babysitters, nannies, day camps and day sports schools can count (overnight camps and boarding schools have weekly limits). Lessons focused on instruction usually don't.
- Keep receipts. An individual caregiver's receipt needs their SIN. Payments to a relative under 18 don't count.
Child Care Expense Deduction Canada
Daycare costs about as much as a second mortgage in some cities, and the deduction doesn't make that go away. But it does turn a good chunk of it into tax savings, because it's a deduction, not a credit: it comes off income at your marginal rate. Here's how to get all of it.
The Limits
| Child | Annual limit per child |
|---|---|
| Under 7 at the end of the year | $8,000 |
| 7 and older, under 16 at any time in the year | $5,000 |
| Eligible for the disability tax credit (any age) | $11,000 |
The limits are pooled across the family's children, so you can spend $12,000 on one toddler and $4,000 on another and still claim $16,000. On top of that, the total can't be more than two-thirds of the claiming parent's earned income.
Who Claims It
If you have a spouse or common-law partner, the parent with the lower net income generally claims it, even if the other parent paid. The higher-income parent can claim it for periods when the lower-income one was:
- a full-time student (or part-time, with a smaller weekly limit);
- unable to care for the children because of a physical or mental impairment, or in hospital or another institution for two weeks or more;
- in prison for two weeks or more;
- living apart from you because of a breakdown of the relationship for at least 90 days that began in the year (special rules apply; see form T778).
Because it's a deduction, it's worth the lower earner's marginal tax rate. It also lowers family net income, which can raise the Canada Child Benefit.
How much is your child care deduction worth?
Tell the assistant what you paid, your children's ages and both parents' incomes and province. It works out the limit, who should claim it, and the tax saved.
What Counts
| Usually deductible | Not deductible |
|---|---|
| Licensed daycare and nursery school | Tuition for school (kindergarten to grade 12) |
| Nannies and babysitters (not your spouse, and not a relative under 18) | Medical and hospital care, clothing, transport |
| Before- and after-school programs | Lessons focused mainly on instruction or training (music, sport skills) |
| Day camps and day sports schools, if their main purpose is supervision | Payments to the child's other parent |
| Overnight camps and boarding schools, within weekly limits | Care while you weren't working, studying or doing research |
Receipts
CRA reviews child care claims often. Keep receipts showing the provider's name, the child, the dates and the amount. A daycare's receipt shows its business number; an individual babysitter or nanny must give their SIN on the receipt. A nanny you employ may also mean payroll obligations (CPP, EI, a T4). See what tax receipts to keep.
Common Mistakes
- The higher-income parent claiming without one of the exceptions.
- Claiming hockey or piano lessons as child care.
- No SIN on the babysitter's receipt.
- Forgetting the $11,000 limit for a child with the disability tax credit, including in past years.
- Claiming care during a parent's maternity or parental leave, when nobody was working.
Return Check looks for these before you file. Missed the deduction in past years? Change my return reaches back ten years. For the bigger picture, see Canadian tax deductions.
Child Care Questions
How much can I claim for child care expenses in 2026?
Up to $8,000 per child under 7, $5,000 per child aged 7 to 16, and $11,000 per child eligible for the disability tax credit, limited to two-thirds of your earned income.
Which parent claims child care expenses?
Generally the parent with the lower net income. The higher-income parent can claim for periods when the other was a student, incapacitated, in prison, or separated because of a relationship breakdown.
Are summer camps deductible as child care?
Day camps whose main purpose is supervision generally are. Overnight camps are deductible within weekly limits. Camps focused on instruction may not qualify.
Can I pay my teenage son to babysit and claim it?
No. Payments to a relative under 18 are not deductible, nor are payments to the child's other parent.
Do I need a receipt for child care?
Yes. Keep receipts with the provider's name and, for an individual, their social insurance number.
Sources: CRA, Line 21400 Child care expenses; Income Tax Folio S1-F3-C1, Child care expense deduction. Checked October 2026. Weekly limits for overnight camps and boarding schools are on form T778; we haven't listed them here.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.