# Child Care Expense Deduction Calculator 2026

> Estimate your child care expense deduction for 2026: the per-child limits, the two-thirds earned income cap and the tax it saves in your province.

A lower-income parent in Ontario earning $45,000, with $14,000 of daycare and after-school bills for two kids, can deduct $13,000 on the 2026 return. That saves about $2,627 in tax (our estimate, October 2026). The limits are $8,000 for the child under 7 and $5,000 for the older one, so $1,000 of the bill earns nothing.

A deduction is worth more at a higher [marginal tax rate](https://tax-services.ca/calculators/income-tax/marginal-tax-rate), yet the lower-income parent is the one who normally claims it. Their earnings also set a second ceiling: two-thirds of what they earned.

## How much can a family deduct for child care?

The claim is the smallest of three amounts: what you paid, the per-child limit, and two-thirds of the claimant's earned income. The limits are $8,000 for a child under 7 at the end of the year, $5,000 for a child aged 7 to 15 (or under 16 at some point in the year), and $11,000 for a child who qualifies for the disability tax credit. Add up the limits for all your kids, then compare the total with the bill.

## Which parent claims?

The parent with the lower net income. If your incomes are equal, you decide between you who does. The higher-income parent can claim only in the situations listed in Part C of [Canada Revenue Agency: who can claim the deduction](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21400-child-care-expenses/who-claim-deduction.html), or when the lower-income parent is in an eligible educational program.

## Which child care costs count?

Daycare centres, nursery schools, paid caregivers and day camps whose main purpose is looking after children count. So do boarding schools and overnight camps, up to weekly caps on Form T778 (see [Canada Revenue Agency: child care expenses](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21400-child-care-expenses.html)). Tuition, medical care, clothing, transportation and leisure fees such as tennis lessons or Scouts registration don't count, and neither does anything an employer or plan paid back. You can't claim payments to the child's parent, your spouse or a relative under 18. Get a receipt from every provider; an individual caregiver's receipt must show a social insurance number. If the care happens in your home, the CPP and EI contributions you pay on the caregiver's wages count too.

## What if the lower-income parent earns very little?

Two-thirds of earned income caps the claim, and the unused part can't be carried to another year. A parent who earned $9,000 can deduct at most $6,000, and at that income owes no tax, so the deduction saves $0. Rental income, interest and dividends don't count as earned income. If you're near the line, extra work before 31 December raises the cap, though slowly: every extra dollar of cap takes $1.50 of earned income.

## How much tax does the deduction save in each province?

It varies by province. The table uses the same $45,000 earner and $13,000 deduction. Quebec has its own refundable child care credit on the provincial return, so the calculator shows only the federal saving there.

| Province | Estimated tax saved |
| --- | --- |
| Ontario | $2,627 |
| British Columbia | $3,011 |
| Alberta | $2,860 |
| Nova Scotia | $3,763 |

A lower net income can also lift the [Canada child benefit](https://tax-services.ca/calculators/family-benefits/canada-child-benefit), which the calculator doesn't add in. For the rest of your return, the [income tax calculator](https://tax-services.ca/calculators/income-tax/income-tax-calculator) shows the full picture.

## Where does this information come from?

The limits and rules come from the Canada Revenue Agency child care expenses pages and Income Tax Folio S1-F3-C1; the tax saved comes from our own engine, using 2026 rates and basic credits. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, 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](https://tax-services.ca/disclaimer).

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Source: https://tax-services.ca/calculators/income-tax/childcare-expense-deduction
Last updated: 2026-10-09
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer