Cost of Having a Baby in Canada | Birth, Parental Leave and First-Year Expenses

In Canada, the birth itself is covered by provincial health insurance, so the costs of a first baby come from three other places: the income lost while a parent is on leave, the gear and supplies a baby needs, and child care once leave ends. For most families the lost income is by far the largest. This page goes through each. It is part of our directory of what things cost in Canada; the money checklist for new parents (applications, documents, insurance, a will) is in the first baby financial guide.

The birth: what’s covered and what isn’t

Provincial health plans cover labour and delivery, nursing care, pain relief given in hospital, medically needed caesarean sections, care for the newborn, and the fees of the physician or registered midwife, along with prenatal tests and ultrasounds in most provinces. The costs that remain are optional or incidental: a private or semi-private room if you want one, hospital parking, prenatal classes, and procedures the province doesn’t insure (such as circumcision that isn’t medically needed in most provinces). Workplace benefits sometimes cover a private room or a breast pump.

Parental leave: the largest cost

Outside Quebec, EI maternity and parental benefits replace 55% of average weekly insurable earnings, up to $729 a week in 2026 (33% on extended parental leave). The weeks, the standard and extended options and the sharing rules are in the EI maternity and parental benefits guide; Quebec parents receive higher replacement rates from the Quebec Parental Insurance Plan. Many employers top up benefits for part of the leave.

What you would receive for your own earnings is in the parental leave calculator, and planning for the gap in how much to save for maternity leave.

Baby gear and supplies

The spread between families is wide: buying everything new and premium costs several times as much as using hand-me-downs, gifts from a registry and second-hand gear. Car seats are the item most families buy new, because a used seat’s history and expiry date can’t always be checked; a new crib mattress is the other common exception.

Child care after leave

Once leave ends, child care is usually the largest ongoing cost of a young child, and it varies more by province than anything else on this page. Every province now has reduced-fee licensed child care under its agreement with the federal government, but spaces are limited and waitlists are long. Costs and how to get a reduced-fee space are in how much daycare costs in Canada, and what children cost through to 18 in the cost of raising a child.

Benefits that offset the cost

• The Canada Child Benefit pays up to $8,157 a year ($679.75 a month) for a child under 6 (July 2026 to June 2027), tax-free and reduced as family income rises; see CCB amounts.
• Provincial child benefits in most provinces are paid with the CCB.
• The Canada Groceries and Essentials Benefit (formerly the GST/HST credit) adds an amount for each child.
• An RESP opened early collects the Canada Education Savings Grant, up to a lifetime $7,200 per child; see the RESP guide.
• The child care expense deduction lowers tax on what you pay for licensed care, generally claimed by the lower-income parent; see the child care expense deduction.

Ways families lower first-year costs

For child care, extended parental leave delays the cost, a reduced-fee space lowers it, and nanny shares or family help are common alternatives.

Related reading

• Financial planning for couples
• Single parent finances