Enter your children’s ages, what you paid for care, and the lower-income spouse’s earned income to see the deductible amount and the tax it removes. The calculator applies the per-child annual limits and the two-thirds-of-earned-income cap, then prices the deduction at your real rates. Figures are current for the 2025 tax year.
Your child care costs
How it works. Each child carries an annual dollar limit set by age — $8,000 under 7, $5,000 from 7 to 16, and $11,000 where the disability tax credit applies. The claim is the least of what you actually paid, the sum of those limits, and two-thirds of the claiming spouse’s earned income. Because it is a deduction, not a credit, the saving lands at your marginal rates.
Estimated tax saved
$0
$0 deductible at your marginal rates
Normally the lower-income spouse must make the claim, whatever the higher earner paid. Keep the receipts — CRA expects them to show the provider’s name and, for individuals, their SIN.
An estimate is a starting point. Get your real number.
This calculator uses published rates. Your actual position depends on the credits, deductions and structure behind your numbers.
- A professional tax accountant reviews your figures, not a formula
- Fixed quote before any work starts
- You pay after you approve the filing
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How the child care deduction is limited
The deduction is the least of three numbers. First, the age-based limits: $8,000 per child under 7 at year end, $5,000 per child aged 7 to 16, and $11,000 per child eligible for the disability tax credit, at any age. Second, what you actually paid to an eligible provider — daycare, a nanny, before-and-after-school programs, and day camps (overnight camps and boarding schools count only up to weekly caps). Third, two-thirds of the claiming spouse’s earned income, which is why a year of parental leave or low earnings can shrink the claim even when the bills were high.
The claim normally belongs to the lower-income spouse. Exceptions exist — periods when that spouse was in full-time school, in prison, or infirm let the higher earner claim for those weeks — but they are narrow, and CRA applies the rule strictly.
What this calculator does not cover
It does not test whether a specific expense qualifies: payments to a child’s parent or to relatives under 18 are excluded, the education portion of private school tuition is not child care, and overnight camp claims are capped per week rather than at the annual limits used here. The exception weeks that shift the claim to the higher-income spouse are also not modelled. To see the marginal rate the deduction is saving at, try the marginal tax rate calculator; to have the claim prepared and the receipts organized properly, see our personal tax filing services.
| Child | Limit |
|---|---|
| Under 7 | $8,000 |
| 7 to 16 | $5,000 |
| Disability tax credit eligible | $11,000 |
Rates reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. Federal and provincial rates change annually, and this tool is an estimate for planning rather than tax advice. Confirm current figures before relying on them for a filing.
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Rates and method reviewed by Udit Gupta
Ex Big 4 — Ernst & Young, Deloitte · International & cross-border tax specialist · CPA Canada (In-Depth Tax Program) · Chartered accountant, ICAI & MIA
Udit Gupta has over 15 years of experience helping corporations and business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. He is Big 4 trained, at Ernst & Young and Deloitte, and qualified as a chartered accountant in India and again in Malaysia. In 2014 he founded his accounting practice to serve entrepreneurs, startups and non-resident business owners across Canada. View full member bio.
The Institute of Chartered Accountants of India — member 521458 · Malaysian Institute of Accountants — member CA 44667 · Ex Big 4: Ernst & Young, Deloitte · CPA Canada (In-Depth Tax Program), completed 19 Dec 2023 · In-Depth GST/HST Part I, 12 Jul 2022 · Part II, 5 Jul 2023
Editorial policy. Every page is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada guidance — and every rate or threshold is stated with the tax year it applies to.
Sources. CRA — Businesses · Income Tax Act (Justice Laws Website)