November 13, 2025
Child care cost after federal and Ontario tax relief
Excerpt: "The Canada-Wide Early Learning and Child Care program’s focus on affordability has significantly lowered child care costs for families with children under six. In Ontario, at the time of writing this document, the maximum price paid for each child under six attending a licensed child care program (centre or home-based) is $22 per day. Eligible families can claim the federal Child Care Expense Deduction (CCED) and Ontario’s Child Care Tax Credit (also known as Ontario Childcare Access and Relief from Expenses (CARE) Tax Credit). The CCED is calculated as a deduction from gross income and applied against the lower employment income in two-parent families. The CCED maximum deduction for a child aged 0 to 7 is $8,000. The specific eligibility documentation can be found on the CRA website. The CARE is the Ontario refundable tax credit that is applied against a maximum of 75 percent of eligible child care costs, with an upper limit determined by the federal CCED deduction limits."