- The federal deduction limit is $8,000 for a child under 7.
- BC has no provincial child care tax credit; the relief is the federal deduction, claimed by the lower-income spouse.
- A $10-a-day centre costs a fraction of private care, but spaces are limited.
Child care is one of the largest family expenses in British Columbia. The cost depends on whether your child has a space at a licensed centre that takes part in the ChildCareBC fee-reduction programs, such as the $10-a-day centres, and how much of the cost you can recover through tax.
ChildCareBC $10-a-day centres and private care
ChildCareBC funds licensed centres that charge no more than $10 a day for children under 6. Not every centre takes part and spaces are limited, so waitlists are common. Care outside the program, such as a private home provider or a centre that does not take part, is charged at market rates. Lower-income families may also qualify for the Affordable Child Care Benefit, which reduces fees at licensed providers.
Tax relief
British Columbia has no provincial child care tax credit. The tax relief is the federal child care expense deduction. The lower-income spouse generally claims it. The yearly limit per child is $8,000 for children under 7, $5,000 for ages 7 to 16 and $11,000 for a child eligible for the disability tax credit. It reduces taxable income, so it saves tax at your marginal rate.
Example: family income $90,000, one child under 7
| $10-a-day centre | Private care at $80/day | |
|---|---|---|
| Days per year | 240 | 240 |
| Annual cost | $2,400 | $19,200 |
| Eligible for the deduction | $2,400 | $8,000 (capped at $8,000) |
| Federal tax saving (at 28.2%) | $677 | $2,256 |
| Net cost after tax relief | $1,723 | $16,944 |
In this example the difference is about $15,221 a year. The calculator uses one income to value the deduction and assumes you claim the full limit, so a couple where the lower earner claims the deduction may see different amounts.
Tips
- Join waitlists early: ask each centre how its fees work under ChildCareBC.
- Keep receipts that show the provider's name and address, the dates, and the amounts paid.
- Overnight camps and boarding schools have separate weekly or monthly limits; keep those receipts apart.
- Compare your own situation in the child care cost calculator.
Compare your child care costs →
Frequently asked questions
Who claims the child care expense deduction?
Usually the lower-income spouse or partner.
Is there a BC child care tax credit?
No. British Columbia does not have one. BC help comes through ChildCareBC fee reductions and the Affordable Child Care Benefit.
Can I claim summer day camp?
Day camps count as child care expenses within the same limits; overnight camps have a weekly limit.
Do $10-a-day fees count for the deduction?
Yes. Only the amount you actually paid counts.