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The child care expenses deduction lets a parent deduct what they paid for daycare, a nanny, day camps or a boarding school so they could work, run a business or study. The 2025 limits per child are $8,000 for children born in 2019 or later, $5,000 for children born from 2009 to 2018, and $11,000 for a child who qualifies for the disability amount. The lower-income spouse normally claims, up to two thirds of earned income.
Who can claim child care expenses?
The CRA page for the 2025 tax year sets out a checklist, and all of it has to be met. The child was under 16 at any time in 2025, or had a mental or physical infirmity and depended on you or your spouse or common-law partner. The child is yours or your partner’s, or depends on you or your partner and had net income of $16,129 or less in 2025. The child lived with you or the other claimant when the costs were incurred.
The payment also has to be for a reason the rules accept. Someone was paid to look after the child so that you or another person could earn employment income, run a business alone or as an active partner, do grant-funded research, or attend school. The school program must be at a secondary school, college, university or other designated institution (or an occupational skills course certified by the federal Minister of Employment and Social Development). It must last at least three consecutive weeks, with at least 10 hours a week for full-time study or 12 hours in a calendar month for part-time study.
The care has to be provided in Canada by a Canadian resident, with exceptions for people who lived abroad or who immigrated or emigrated in 2025.
What are the limits per child?
The limits come from Form T778 for 2025. The deduction is also capped by what you actually paid and by two thirds of your earned income.
| Child | Annual limit | Weekly limit for boarding school or overnight camp |
|---|---|---|
| Born in 2019 or later, disability amount cannot be claimed | $8,000 | $200 |
| Disability amount can be claimed (Form T2201 attached) | $11,000 | $275 |
| Born 2009 to 2018, or born 2008 or earlier with an infirmity, disability amount cannot be claimed | $5,000 | $125 |
Boarding schools, overnight sports schools and camps with lodging are limited by the weekly amount times the weeks attended, as the form explains.
Which costs count, and which do not?
The CRA lists eligible payees: caregivers, day nursery schools and daycare centres, the child care part of fees at an educational institution, day camps and day sports schools whose main goal is looking after children, and boarding schools or camps with lodging. Quebec residents can include the basic contribution paid directly to a subsidized provider.
You cannot claim medical or hospital care, clothing, transportation, tuition for a regular program, or leisure and recreation fees such as tennis lessons or annual Scouts registration. Amounts that someone reimbursed, or that came as financial assistance, are out as well. If you hired someone to care for the child in your home, the CPP contributions and EI premiums you paid for that person count as a child care expense too.
Some people cannot be paid and still have you claim. That covers the child’s parent, your spouse or common-law partner if you are the child’s parent, a person you or your partner claim as a dependant, and a person under 18 who is related to you. A 14-year-old daughter babysitting her brother is the CRA’s own example of a non-claimable payment.
Which parent claims the deduction?
If you lived with the child’s other parent or your spouse or common-law partner at any time in 2025 and in the first 60 days of 2026, the person with the lower net income must claim, even if that income is zero. If net incomes are equal, you have to agree on who claims.
The higher-income person can claim only in a situation from Part C or Part D of Form T778. These are: the lower-income person was in school, had a temporary infirmity (confined at least two weeks to a bed or wheelchair, or in a hospital), had an infirmity likely to last indefinitely, or was in prison for at least two weeks. A short separation after a relationship breakdown can also qualify. Each person files a separate T778.
How do the receipts and the claim work?
The provider gives you a receipt. If an individual provided the care, the receipt must show that person’s SIN. The receipt can be in your name or your partner’s name. You complete Form T778 and enter the result on line 21400. Online filers keep the documents, and paper filers attach T778 but not the receipts. You can only claim expenses for services provided in the tax year, and you cannot carry unclaimed expenses forward.
What does a worked example look like?
A mother earns $42,000 in Ontario and is the lower-income parent. Her daughter, born in 2021, is in daycare for $10,200 a year, and her son, born in 2016, goes to day camps for $2,400. The daughter’s limit is $8,000, so only $8,000 of the daycare counts. The son’s camps are under his $5,000 limit, so all $2,400 counts. That makes $10,400. Two thirds of her earned income is $28,000, which is higher, so the deduction is $10,400.
With the 2026 federal and Ontario rates from the site engine (2027 rates are not published yet), the tax saving is about $2,131.20. This is our calculation, not an official figure. If she had earned only $9,000 from part-time work, two thirds would be $6,000, and that would become the cap. Run your own case in the child care expense deduction calculator.
What could change or trip people up?
The limits and the child’s income test above are the ones shown for the 2025 tax year, so check the CRA pages for the year you file. The most common slips are claiming a regular tuition fee, paying a relative under 18, or both parents claiming. A deduction for child care is different from the monthly benefit, so read child benefits and credits by age and the child care expense deduction guide to see how they fit together. For a child with a disability certificate, see the disability tax credit page. Official sources: Canada Revenue Agency: line 21400 child care expenses and Canada Revenue Agency: Form T778.
Where does this information come from?
Rules and figures come from the Canada Revenue Agency pages for line 21400 (Who is eligible, Expenses you can claim, Determine who can claim the deduction, How to claim; tax year 2025) and the Form T778 text for 2025. The tax saving in the example is our own calculation with the site’s 2026 federal and Ontario rates. Checked on 31 October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
How much child care can I deduct per child in Canada?
For the 2025 tax year the limit is $8,000 for a child born in 2019 or later, $5,000 for a child born from 2009 to 2018, and $11,000 for a child eligible for the disability amount. The total is also capped at two thirds of your earned income.
Which spouse should claim child care expenses?
The spouse or common-law partner with the lower net income must claim, even if that income is zero. The higher-income partner can claim only in situations listed on Form T778, such as the lower-income partner being in school, seriously ill or in prison.
Does summer day camp count as child care?
Day camps and day sports schools count when their main goal is looking after children. Overnight camps and boarding schools count up to a weekly limit. Recreation fees, such as tennis lessons or annual Scouts registration, do not count.
Do I need the babysitter's SIN?
Yes, when an individual provided the care: the receipt must show that person's social insurance number. The receipt can be in your name or your spouse's name. You do not send receipts with the return, but keep them in case the CRA asks for them later.
Can I pay my teenage child or a relative and claim it?
Not always. You cannot claim amounts paid to the child's parent, to your spouse if you are the child's parent, or to a person under 18 who is related to you. A 14-year-old daughter paid to babysit her brother is a CRA example of a payment that does not qualify.
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