How much can I claim for child care expenses?

The maximum deduction is $8,000 for children under 7, $5,000 for children ages 7-16, and $11,000 for children with disabilities. You can only claim the lesser of actual expenses or the limit.

Who claims child care expenses in Canada?

Generally, the lower-income spouse must claim child care expenses. There are exceptions if the lower-income spouse is a student, disabled, or in prison.

What child care expenses are deductible?

Deductible expenses include daycare, nanny or babysitter wages, day camps, boarding school (for care, not tuition), and overnight camps (up to weekly limits).

Can I claim nanny expenses and what records do I need?

Yes. Nanny wages are deductible child care expenses. You need receipts showing the nanny's name, SIN, address, amount paid, and dates of service. If you pay over $3,500 to any individual in a year, you are also required to issue a T4 slip and remit CPP and EI as their employer. Many families overlook this requirement.

What is the maximum tax savings from the child care deduction?

The tax savings depend on the lower-income spouse's marginal rate. At a 30% marginal rate, the $8,000 deduction for a child under 7 saves $2,400 in tax. For two children under 7, that is $4,800 in tax savings. At a 40% rate, it is $3,200 per child ($6,400 for two). This is a deduction, not a credit, so it is more valuable at higher tax brackets.

Child Care Expense Deduction Canada 2026: $8,000 Under 7, $5,000 Ages 7–16

Child Care Expense Deduction

Child care expenses are tax-deductible when you (or your spouse) pay for child care to work, run a business, attend school, or conduct research.

2026 Deduction Limits

Child’s Age/Status	Annual Limit	Weekly Limit (camps)
Under 7 years	$8,000	$200
Ages 7-16	$5,000	$125
Disabled (any age with DTC)	$11,000	$275

These are maximum limits. You can only claim actual amounts paid, up to the limit.

Who Can Claim

General Rule

The lower-income spouse must claim the deduction. This rule exists because the deduction provides a larger tax benefit to lower-income earners.

Exceptions

The higher-income spouse can claim if the lower-income spouse is:

Situation	Higher-Income Can Claim
Full-time student	For each week/month in school
Disabled (cannot care for children)	Full amount
In prison (90+ days)	Full amount
Separated (90+ days)	Full amount
Living apart for work/school	For that period

Single Parents

Single parents claim all eligible expenses on their own return.

Qualifying Expenses

Eligible Child Care

Expense	Deductible
Licensed daycare	✓ Yes
Unlicensed daycare	✓ Yes
Nanny or babysitter	✓ Yes
Before/after school programs	✓ Yes
Day camps	✓ Yes (weekly limit)
Overnight camps	✓ Yes (weekly limit)
Boarding school (care portion)	✓ Yes (limit applies)
Preschool / nursery school	✓ Yes

NOT Eligible

Expense	Why Not Deductible
Medical/hospital care	Not child care
Clothing	Not care
Transportation	Not care
Tuition for education	Not care (some overlap with boarding school)
Sports/hobby lessons	Education, not care
Payments to spouse/related minors	CRA restriction
Payments to parent of the child	CRA restriction

Calculating Your Deduction

Step 1: Add Up Expenses

Total all qualifying child care payments for the year.

Step 2: Apply Limits

Each child has an individual limit based on age/status.

Step 3: Apply Income Limit

The deduction cannot exceed 2/3 of your earned income.

Example Calculation

Family situation:

2 children (ages 3 and 8)
Total daycare paid: $15,000
Lower-income spouse earns: $45,000

Child	Age	Expenses	Limit	Eligible
Child 1	3	$10,000	$8,000	$8,000
Child 2	8	$5,000	$5,000	$5,000
Total		$15,000	$13,000	$13,000

Income check: 2/3 of $45,000 = $30,000 (not limiting)

Final deduction: $13,000

Tax savings (at 30% marginal rate): $3,900

Receipts Required

You must have receipts showing:

Caregiver’s name
Caregiver’s SIN (or business number)
Amount paid
Dates of care

Nannies and Babysitters

If you pay an individual directly, you may need to:

Get their SIN
Issue a T4 if wages exceed threshold
Potentially pay employer CPP/EI contributions

Daycare Centers

Licensed daycares typically provide tax receipts by February.

Special Situations

Summer Camps

Day camps and overnight camps qualify, but overnight camps are subject to weekly limits:

Child	Day Camp	Overnight Camp
Under 7	$8,000/year	$200/week
Ages 7-16	$5,000/year	$125/week
Disabled	$11,000/year	$275/week

Students

If you’re a student (full-time or part-time), you can claim for weeks/months in school:

Attendance	Monthly Limit	Weekly Limit
Full-time student	Same as annual ÷ 12	Same as weekly
Part-time student	2/3 of full-time	2/3 of weekly

Disabled Children

Children eligible for the Disability Tax Credit qualify for the $11,000 limit regardless of age.

How to Claim

Complete Form T778 (Child Care Expenses Deduction)
Enter total on line 21400 of your return
Keep receipts for 6 years (CRA may request)

Child care expenses work alongside other family benefits:

Benefit	What It Does
Canada Child Benefit	Monthly payment based on income
Child Care Expense Deduction	Reduces taxable income
Child amount (non-refundable credit)	$2,499 per child under 18
Disability Tax Credit	Additional credit for disabled children

Provincial Child Care Programs

Some provinces offer additional support:

Province	Program
Quebec	$10/day subsidized daycare
Ontario	CWELCC fee reductions
BC	ChildCareBC fee reductions
Alberta	Child care subsidy

These programs reduce your out-of-pocket costs. You can only claim what you actually paid.

Common Questions

Can grandparents be paid for child care?

Yes, if they are not your spouse or a dependent and they provide proper receipts with their SIN.

What if I pay my older child to babysit?

Payments to your own children under 18 cannot be claimed.

Can I claim expenses while on parental leave?

Generally no, as you’re not working or studying. Expenses must be to earn income or attend school.