How Much Does It Cost to Raise a Child in Toronto in 2026?
There's no official price tag — but there are two government programs that put real numbers on the table. The Canada Child Benefit pays up to $8,157 a year per child under 6, and the RESP adds a 20% top-up on your education savings. Start there, then build an honest budget around them.
How we check the numbers: every figure on this page is calculated from official CRA, Statistics Canada or Bank of Canada data and cross-checked with the free calculators on this site — run them yourself to verify.
The quick answer
CCB maximums for the July 2026–June 2027 benefit year, per the Government of Canada. The benefit is tax-free, paid monthly, and income-tested — higher family incomes receive less. $8,157 ÷ 12 = $679.75/month; $6,883 ÷ 12 = $573.58/month.
How the Canada Child Benefit works
The CCB is the single biggest piece of child-related support most families receive. Key mechanics:
- Tax-free monthly payments for each child under 18, deposited around the 20th of each month.
- Income-tested: the maximums above go to lower-income families; payments phase down as adjusted family net income rises.
- Automatic once filed: you apply once (usually at birth registration in Ontario), and it continues as long as you file taxes every year — the CRA recalculates each July from your return.
- Shared custody: each parent can receive half if custody is genuinely shared.
At the maximum, $679.75/month for a young child is meaningful money — roughly a month of groceries for a small family. But note what it is: support with costs, not coverage of them. The gap between the CCB and actual Toronto child costs is what your budget has to absorb.
An honest example budget (illustrative)
The figures below are an illustrative example for one preschool-aged child in Toronto — not a statistic. Your numbers will differ by neighbourhood, childcare choices, and lifestyle:
| Category | Illustrative range/month |
|---|---|
| Childcare (the big one) | $500 – $1,800 |
| Food, diapers, clothing | $250 – $450 |
| Activities, outings | $50 – $200 |
| Health, dental top-ups | $30 – $100 |
| Example total | $830 – $2,550 |
Childcare dominates everything else — it's often larger than all other child costs combined. Ontario's $10-a-day childcare rollout has narrowed this for many families, but availability varies enormously by neighbourhood, and infant spots remain the hardest to find. If you're planning, price actual waitlists near you rather than budgeting from averages.
The RESP top-up most parents underuse
The Registered Education Savings Plan has a feature too many parents leave on the table: the Canada Education Savings Grant (CESG). The federal government adds 20% on the first $2,500 you contribute per child per year — that's up to $500 of free money annually, $7,200 lifetime per child.
The math is simple: contribute $2,500/year and the grant turns it into $3,000/year before any investment growth. Skipping the contribution doesn't defer the grant — unused CESG room only partially carries forward, so years you miss are mostly lost. If education saving is on your list at all, the first $2,500 per year per child is the highest-return "investment" available: an instant, risk-free 20%.
- Open the RESP early — growth compounds for 17+ years.
- Automate $208.33/month ($2,500 ÷ 12) to capture the full annual grant without thinking about it.
- Invest it, don't just hold cash — an RESP sitting in a savings account for 18 years loses enormous ground to inflation. Age-appropriate investing matters here.
Putting it together
A realistic Toronto planning sequence for expecting parents:
- Apply for the CCB at birth registration — don't leave months of payments unclaimed.
- Open an RESP and automate contributions to capture the $500/year CESG.
- Price childcare now — join waitlists during pregnancy, not after birth.
- Rebuild the emergency fund for the higher monthly burn rate; see how to size it from take-home pay.
- Revisit the budget with the cost of living calculator once the baby arrives — planned vs actual always differ.
Frequently asked questions
Do both parents need to apply for the CCB?
One application per family is enough — it's typically the parent primarily responsible for the child's care. In shared custody, each parent applies for their own share.
Is the CCB really tax-free?
Yes. CCB payments are not included in taxable income and don't reduce other benefits. That's what makes the $8,157 maximum more valuable than an equivalent taxable amount.
What if our income is too high for the CCB?
There's no hard cutoff — payments phase down gradually with income rather than vanishing at a threshold. Even higher-income families often receive a partial benefit. File taxes every year regardless; the CRA does the math.
Sources
Budget for the new arrival
Use the cost of living budget calculator to model your household with the added costs, and read how to size an emergency fund for the higher monthly burn.
Educational content only — not financial advice. Figures are estimates; confirm your own situation with the CRA or a licensed financial advisor. See our Disclaimer.