The Cost of Childcare in Toronto: What Families Pay and How to Plan for It

Before you buy that cute bassinet or a single onesie, you’ll face a big decision: how much money will you need out of pocket for future child care, and how will you plan for it? For families in the Greater Toronto Area (GTA), full-time daycare can rival the cost of a monthly rent payment.

The cost of living in Toronto is already steep, and child care is often left out of most cost-of-living averages. Financial planning for your growing family may mean adding your children to child care waitlists early (often as early as during pregnancy), as subsidized programs fill quickly and you may be forced to pay private-market rates—at least until you get approved.  

Between Canada-Wide Early Learning and Child Care (CWELCC)-capped fees and Toronto's income-tested subsidy, getting into a subsidized program can significantly affect your family’s budget or sustainable spending plan. 

To help you plan your child care spending needs, we'll walk you through what families are actually paying in 2026, how the $10-a-day child care program could help, and how to plan for the cost without going into debt.

How Much Does Daycare Cost in Toronto in 2026?

The answer depends almost entirely on whether your daycare centre participates in the CWELCC program. If it does, fees for children under six are currently capped at $22 per day, with the provincial average around $19 per day. If you average 22 days of care per month, you’ll pay up to $484 per month. If your centre isn't enrolled, you're paying much higher private market rates.

Here is a summary of average child care fees in Toronto:

Infant care costs the most because Ontario mandates a 3:10 staff-to-child ratio in infant rooms, compared to 1:5 for toddlers and 1:8 for preschoolers. More staff per child means higher costs.

What the $10-a-Day Program (CWELCC) Means for Your Fees

CWELCC is a federal-provincial initiative launched in 2022 to reduce licensed child care fees for children under six to a national average of $10 per day. Ontario capped fees at $22 per day in January 2025, bringing the provincial average to about $19 per day. The province still has work to do to hit its December 31, 2026 deadline for $10-a-day care. 

It’s also worth noting that the $10-a-day figure is a system-wide average, not a flat maximum. For now, Toronto families should plan between $19 and $22 per day for future child care. If your centre participates, the fee reduction is built into what they charge. You won’t need to file a separate application.

Why Some Toronto Centres Opted Out

About 8% of licensed Ontario spaces sit outside CWELCC. The program caps profit margins and limits for-profit providers to account for no more than 30% of all licensed childcare spaces in Ontario. Operators in central Toronto have argued the funding model doesn't cover actual overhead costs, according to CTV News.

When a centre opts out, fees revert immediately to full market rates. Families on the waitlist pay up to $2,500 a month until a subsidized spot opens. It's a hard position to be in, and not one that families have much control over, which is why it's worth asking about CWELCC participation before you join any waitlist and whether they plan on staying enrolled long term. Start building a temporary cash buffer as soon as you can in case you need to start at a private rate while waiting for a CWELCC spot to open up.  

Also, if your child will need before-and-after-school care after they turn six, many subsidies will no longer apply. Consider this increase in child care costs in your long-term spending plan now so you can start saving early. 

What Affects the Cost of Child Care in Toronto

Most child care spots are priced based on your child’s age, since younger children require a higher staff-to-child ratio. However, there are several factors that will affect how much your child care spot will cost you: 

• Registration costs. You will need cash upfront to pay for registration fees and deposits (often equal to one month's care). Current subsidies don't cover these costs, so you’ll pay them out of pocket; they vary by daycare or school.
• Licensing. Licensed home child care agencies enrolled in CWELCC charge up to $22 per day for full-time spots (six to 12 hours per day) and $12-16 for part-time care (under six hours). Unlicensed home providers set their own rates with no cap, and they are typically higher than subsidized spots.
• Base vs. extra fees. CWELCC covers standard care hours within the $22 capped daily rate, while registration fees are frozen and discounted separately. Optional extras like field trips, transportation, and hours beyond 12 per day may apply and are billed separately. Ask your childcare provider what other fees may apply before signing (such as fees for late pick-up), which can quietly derail a tight budget.
• Age-out dates. Eligibility ends when a child turns six, with one exception: children who turn six between January 1 and June 30 and stay in a preschool or kindergarten grouping can remain eligible through June 30 of that calendar year.

Toronto vs. Other Ontario and Canadian Cities

Toronto's capped rate is a real improvement, but it still sits above many other Canadian cities and hasn’t reached the $10-per-day goal. Here’s a comparison of 2025 child care median fees for infant care: 

Of the 35 cities in this 2025 survey, only 11 cities have met or exceeded the $10-per-day goal. The top five most expensive cities are all in British Columbia (Kelowna, Burnaby, Vancouver, Surrey, and Richmond), with median rates ranging from $24 to $46 per day. 

Subsidies and Financial Help for Child Care

Some families can stack their CWELCC subsidy with another program for additional savings. The City of Toronto Child Care Fee Subsidy adds income-tested support on top of that. To qualify, you must live in Toronto, and every parent or guardian must be working, studying, or actively seeking work. You can apply for the subsidy as soon as you are expecting a child.

The daily rate is calculated by dividing the annual contribution by the total number of approved care days in the year (typically 261 for full-time care). As it’s based on your net income rather than gross income, deductions matter significantly. 

RRSP contributions, union dues, and previous child care expenses lower a family’s net income, and increase your child care subsidy. For families near the threshold, a strategic RRSP contribution can literally pay for itself in child care savings.

You don’t need to calculate this on your own. Use the City of Toronto's Fee Subsidy Calculator to estimate how much you’d pay for child care per day. Here are a few examples from that calculator, based on one toddler-aged child:

Contribution rates are set by provincial regulation and can change, so treat any figure you calculate as an estimate and confirm it with the City.

How to Budget for Child Care Without Going into Debt

The financial shock of child care isn't only the monthly number; it's the timing.

Employment Insurance (EI) parental benefits replace 55% of your usual earnings up to a weekly maximum (or 33% if you take the extended 18-month option). That means most families arrive at the end of parental leave having spent a year or more on reduced income, with savings thinner than when they started. Then, the child care bill begins, often with a deposit and first month's fees due before the first full paycheque lands.

Here are a few things to note about your child care expenses:

• Because the Canada Child Benefit (CCB) is calculated using the previous year's adjusted family net income, many families receive higher tax-free monthly CCB payments right as they return to work (because their income was lower while on EI). The year after your income increases (your first year back to work), you should expect your subsidy amount to decrease in future years.
• Child care expenses in Canada are tax-deductible and are generally claimed by the lower-income spouse. While this doesn't help with immediate monthly cash flow, it provides a sizable year-end tax refund that can rebuild depleted emergency savings or fund future child care expenses, and subsidies decrease with your income increase in subsequent years.

Our free Budget Planner is a good place to start updating your cash flow to include your new child care costs. Enter your post-leave income, fixed expense obligations, and child care costs to see whether the numbers work.

At Credit Canada, we teach an approach called sustainable spending. It's about looking honestly at your income and expenses and building a plan you can live with over time, using the ABC method: 

• A (Analyze): Take a close look at your income and expenses to understand how much money is coming in and where it’s going out.
• B (Brainstorm): Think about ways to improve your cash flow by either earning more, spending less, or both. You can also set goals, like saving for emergencies, paying off debt, and planning for child care costs.
• C (Change): Commit to making at least 1-2 positive changes you’ve outlined above. Once you’ve completed them, you can implement the others. Even small adjustments can lead to big changes over time.

If resolving debt is part of the equation, a certified Credit Counsellor at Credit Canada can review your full financial situation and walk you through your options, including a Debt Consolidation Program (DCP, also known as a Debt Management Program or DMP).

Whether you’re trying to build a budget for daycare fees or dealing with debt accumulated during parental leave, you can also chat with Mariposa, our 24/7 AI-powered debt management agent, to get started. 

Plan Now So Child Care Doesn't Derail Your Finances Later

Toronto child care costs are manageable with the right preparation. Secure your CWELCC spot early, apply for the City's fee subsidy as soon as you're eligible, and build the cost into your sustainable spending plan before parental leave ends. 

If the numbers still don't balance, you don't have to figure it out on your own. Speak with a certified Credit Counsellor at 1 (800) 267-2272 for a free conversation. No appointment needed. They’ll assess your situation and walk you through how to fit child care costs into your budget.  If needed, they can also help you create a savings plan for when it's time to start making payments.