By TaxNorth Editorial Team
Raising a family in Canada comes with significant costs. The Canadian government offers the childcare expenses tax deduction to help ease this financial burden.
The childcare expenses deduction allows parents to deduct the cost of eligible childcare from their taxable income, claimed on Line 21400 of your tax return. Lowering your taxable income reduces the total tax you owe and often results in a larger refund. This deduction is for parents who need to pay for childcare so they can work, run a business, or attend school.
For the 2025 and 2026 tax years, you can claim up to $8,000 for each child under seven years of age at the end of the year. For children between ages seven and sixteen, the maximum is $5,000 per child. If your child qualifies for the Disability Tax Credit, the maximum increases to $11,000 per year. You can only claim the actual amount paid if it is lower than the limit, and your total deduction cannot exceed two-thirds of your earned income for the year. Always verify current amounts at canada.ca.
In most two-parent families, the spouse or common-law partner with the lower net income must claim the childcare expenses. There are exceptions — for example, if the lower-income spouse was enrolled in school full-time, was confined to a hospital, or was physically or mentally unable to care for the children. Review the CRA's complete list of exceptions at canada.ca. Single parents claim on their own return.
Eligible expenses include fees paid to daycare centres, nursery schools, nannies, day camps, overnight summer camps, and before-school or after-school care programs. Payments to non-resident caregivers providing care outside Canada may also qualify in certain circumstances — the CRA recognizes some situations where a Canadian resident can claim childcare expenses paid to non-resident providers. You cannot claim regular medical expenses, clothing, or transportation costs. When paying an individual caregiver, obtain a receipt with their Social Insurance Number. Always verify eligibility at canada.ca.
Can I claim childcare expenses if I am looking for work? Yes, if you were actively seeking employment. Does the Canada Child Benefit affect this deduction? No — they are separate. Do I need to send receipts when I file? No, but keep them for at least six years. The CRA frequently requests childcare receipts and without them your deduction may be reversed.
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