Tax · Line 21400 / Form T778
Child care expenses deduction calculator.
A real three-way "lesser of" test — what you paid, your per-child annual caps, and two-thirds of earned income — the same formula CRA's own worksheet uses.
Per child, per year: $8,000 under age 7, $5,000 for ages 7–15, and $11,000 for a child eligible for the Disability Tax Credit (any age). The deduction is generally limited to 2/3 of the lower-income spouse's earned income, and is usually claimed by that lower-income spouse.
Inputs
Result
Fill the form and press Calculate.
The real three-way test
CRA's own worksheet computes your deduction as the lesser of three amounts: (A) the child care expenses you actually paid; (B) two-thirds of the claiming spouse's earned income; and (C) the sum of the annual per-child amounts for every eligible child. Whichever of the three is smallest is what you can actually deduct — not necessarily what you paid.
Per-child annual caps
- $8,000 for each child under 7 years of age at the end of the year
- $5,000 for each child age 7 through 15 (under 16) at any time in the year, or over 15 with a physical or mental infirmity who isn't DTC-eligible
- $11,000 for each child for whom the Disability Tax Credit may be claimed, at any age
These are fixed dollar amounts written into the Income Tax Act (s.63(3)) — unlike CPP or the pension income amount, they're not indexed annually, so they carry forward reliably to 2026.
Who claims it
Generally, the spouse or common-law partner with the lower net income (including zero) must claim the deduction, even if the higher-income spouse actually paid the bills. Exceptions exist — if the lower-income spouse is enrolled in a qualifying educational program, is infirm and confined, is incarcerated, or the couple separated and later reconciled within 60 days — in which case the higher-income spouse can claim instead.
Sources, verified 29 September 2026 (raw canada.ca text, read directly): CRA Income Tax Folio S1-F3-C1 — Child Care Expense Deduction (per-child caps and the A/B/C lesser-of formula), CRA — Line 21400: Who can claim child care expenses (lower-net-income claimant rule and exceptions).
Frequently asked questions
Is this a credit or a deduction?
A deduction — it reduces your net income (line 23600) directly, at your marginal rate, rather than being a fixed-percentage non-refundable credit.
What if I'm a single parent?
You claim against your own earned income — there's no spouse to compare against, so enter your own earned income in the calculator.
Do camp and boarding school fees count?
Yes, subject to per-week/per-session sub-limits that are lower than the full annual amount (roughly 1/40th of the child's annual limit per week for camps, for example) — this tool models the annual totals, not those weekly sub-caps.
Does a nanny or daycare need a receipt?
Yes. You need the caregiver's or facility's name and, for an individual, their SIN, to support the claim if CRA asks.
Estimate only
Uses the confirmed per-child annual caps and the A/B/C lesser-of formula from CRA's own Income Tax Folio. Does not model weekly boarding-school/camp sub-limits, the higher-income-spouse exceptions in detail, or the additional week-of-separation top-up rule. Confirm your exact deduction with Form T778 or a tax professional.