Childcare Expense Deduction Canada 2025 — $8,000 and $5,000 Limits

Childcare Deduction Calculator

Number of Children Under Age 7

Number of Children Age 7 to 16

Number of Children with Disability (any age, +$5,000)

Total Childcare Expenses Paid ($)

Lower-Earning Spouse Net Income ($)

Your Marginal Tax Rate (%)

KOHO for Families

Managing family finances is easier with KOHO. Joint accounts, savings goals for education, and up to 4.5% on savings. Use code BREMO2026 for a bonus.

Open KOHO — Code: BREMO2026

Childcare Expense Deduction Rules in Canada

The childcare expense deduction is one of the most valuable deductions for Canadian families. Here are the key rules for 2025:

$8,000 per child under 7 at end of the year (born 2019 or later for 2025)
$5,000 per child aged 7 to 16 at the start of the year
$11,000 per child with a severe disability at any age
The deduction must be claimed by the lower-income spouse or common-law partner in most cases
The lower earner can only deduct up to 2/3 of their net income
If the lower earner is a full-time student, in prison, or hospitalized, the higher earner may claim
Receipts from the service provider with their SIN are required

Eligible Childcare Expenses

Licensed daycare centres and nursery schools
Registered home daycare providers
Babysitters (must provide their SIN — if under 18, cannot be your child)
Day camps and day sports camps (overnight camps limited)
Before and after school programs
Boarding schools (limited to weekly childcare portion, not full tuition)

Not eligible: Clothing and equipment, tutoring, sports team fees, payments to your spouse or the child's parent.

Provincial Subsidies and Benefits

Many provinces offer additional childcare subsidies that reduce your out-of-pocket cost. The federal government's $10/day childcare program (rolling out provincially) significantly reduces eligible expenses — and therefore reduces the deduction value, but also reduces actual cost dramatically.

Check your province's subsidy program before assuming you must claim the full amount — subsidized fees from the government are not eligible childcare expenses.

Childcare Deduction Calculator

KOHO for Families

Childcare Expense Deduction Rules in Canada

Eligible Childcare Expenses

Provincial Subsidies and Benefits

Related Tax Guides