Who claims the childcare deduction in Canada — the higher or lower earner?

Generally, the lower-income spouse or common-law partner must claim the childcare expense deduction. The higher earner can only claim if: the lower-income spouse was in school, in prison, hospitalized, or was the one who was absent or separated. This rule is often surprising and can reduce the value of the deduction when the lower earner has low or no income.

How much childcare can I claim per child?

For 2026, the annual childcare deduction limit is: $8,000 per child under age 7 at year-end; $5,000 per child aged 7–16; $11,000 per child with a severe disability regardless of age. These are the maximum claimable amounts — your actual deduction is further capped by 2/3 of the lower-income earner's net income.

Does daycare qualify as a childcare expense?

Yes. Licensed daycare centres are among the most clearly eligible childcare expenses. Also eligible: private in-home babysitters (who must provide their SIN), nannies, after-school programs, overnight camps (up to a weekly limit), day camps, boarding schools, and sports or arts schools where the childcare component is the primary purpose.

Does summer camp qualify as a childcare expense?

Yes, with limits. Day camp fees are claimable (subject to the annual per-child limit). Overnight camps and boarding schools are subject to a lower weekly limit — for 2026, $200 per week per child for overnight camps, or $275 per week for children with certain disabilities. This weekly limit caps the amount claimable for extended camps.

Can I claim childcare paid to a family member?

Yes, but not to your spouse or common-law partner, not to someone who is your or your spouse's child (unless they are 18 or older and not claimed as a dependent), and not to someone you claim as a dependent. Payments to a parent, sibling over 18, aunt/uncle, or other adult relative for childcare do qualify if they provide their SIN and the amounts are reasonable.

Can I Deduct Childcare on Taxes in Canada?

The childcare expense deduction is one of the most impactful deductions available to Canadian parents — but its rules are frequently misunderstood. Here is a complete guide to who can claim, what qualifies, and how to maximize the deduction.

What is the childcare expense deduction?

The childcare expense deduction (Line 21400 on your T1) allows you to deduct what you paid for childcare — so you could work, study, carry on business, or actively look for work. It reduces your net income, making it more valuable than a tax credit for higher earners.

Eligible children

You can claim childcare expenses for a child who:

Is under 16 at any point in the tax year, or
Is under 18 and has a physical or mental infirmity and depends on you, or
Is your or your spouse’s dependent child of any age if they have an infirmity

Children who are 16 or older with no disability do not qualify.

Annual deduction limits per child (2026)

Child’s situation	Annual limit
Under age 7 at December 31	$8,000
Age 7–16 (standard)	$5,000
Eligible for the disability tax credit	$11,000
Not DTC-eligible but has impairment	$5,000

Your total claim is also limited to ⅔ of the lower-income earner’s net income (see below).

The lower-income spouse rule

CRA requires that the lower-income spouse or common-law partner claim the deduction. This is designed to ensure the deduction reduces the income of the person with more room, but it does mean high-income single-earner households get less value from it.

Exceptions — the higher-income spouse can claim if the lower-income spouse was:

Enrolled in full-time or part-time education (specific conditions apply)
Confined to a prison or similar institution for at least 2 weeks
State of incapacity/infirmity for at least 2 weeks
Absent from Canada (or living apart) for at least 90 days during the year

What qualifies as an eligible childcare expense

Clearly eligible:

Licensed daycare centres (government-regulated)
Private babysitters and nannies (must provide their SIN)
After-school programs when the primary service is childcare
Day camps (summer and school break programs)
Overnight camps — weekly limit of $200/week (or $275/week for eligible children with disabilities)
Boarding schools — weekly limit of $200/week for the childcare portion
Nursery school / preschool where care is the primary component
Sports schools and arts schools where the childcare is the primary purpose (academic/skill instruction secondary)

Not eligible:

Medical and hospital care
Clothing and food for the child
Transportation to/from daycare
Tuition at a school where education is the primary purpose (that’s a different credit — tuition is for post-secondary)
Payments to the other parent of the child
Amounts reimbursed by an employer (tax-free childcare benefits already received)

SIN requirement for private caregivers

If you pay a private individual (babysitter, nanny, friend, relative) rather than a business, you must obtain and report their SIN on Form T778. CRA uses this to cross-reference the income on the caregiver’s tax return. Without the SIN, your claim may be rejected.

Caregivers who are businesses (daycare centres, camps) do not need to provide a SIN — obtain their business number instead.

Documentation to keep

Receipts from daycare centres, camps, schools — include the provider name, child’s name, dates of care, and amount paid
Caregiver’s SIN (for private individuals)
For camps: the name of the camp, dates, and whether it was a day or overnight camp
Retain records for 6 years

How to claim

Complete Form T778 (Child Care Expenses Deduction)
Calculate the eligible amounts by child and apply the annual limits and the 2/3 of lower-income net income cap
Enter the deduction on Line 21400 of your T1

Example calculation

Family: Two-income couple with one child under 7. Higher earner: $95,000 net income. Lower earner: $45,000 net income. Annual daycare: $14,000.

	Amount
Annual limit for child under 7	$8,000
2/3 of lower earner’s net income	$30,000
Lesser of: eligible expenses vs. annual limit	$8,000 (daycare $14K > limit $8K)
Actual deduction	$8,000

In this case, even though $14,000 was paid, the per-child limit caps the deduction at $8,000.

Can both parents claim?

Generally no — the lower-income spouse claims the full amount. The exception is when the lower-income spouse was a student for part of the year: in that case, the amount may be split or the higher earner may claim a portion during the study period.

Can I Deduct Medical Expenses in Canada? — If the child has disability-related expenses
Canada Child Benefit (CCB) Guide — The other major federal benefit for families
Disability Tax Credit Canada — Affects the childcare limit for eligible children
RESP Guide Canada — Saving for the child’s future education