Deduct Childcare Costs: How to Claim KITA, After-School Care, Nanny & Babysitter expenses in Your Tax Return

👶 Deducting childcare correctly – here’s how

Daycare (KITA), after-school care (Hort), a childminder (Tagesmutter), babysitter, or a nanny are part of everyday life for many families— especially when parents work, are in training/education, or can’t look after their children due to illness or an accident. The good news: third-party childcare costs can be deducted in your tax return if certain conditions are met.

Here’s a practical overview for the 2025 tax period in the Canton of Zurich (including direct federal tax).

⏱️ The key points in 30 seconds

• You can deduct documented third-party childcare costs per child (up to a maximum limit).
• The child must be under 14 and live in the same household.
• The childcare must be directly related to employment, education/training, or inability to work.
• For cohabiting couples or shared custody, the deduction is generally split 50/50 per parent (with a reduced maximum per parent).
• Documentation is essential: without proof, the tax authority may reduce or deny the deduction.

💰 How much can you deduct in Zurich (2025)?

For each child who has not yet turned 14, you may deduct proven childcare costs—up to the following limits:

• Canton of Zurich (cantonal/municipal taxes): max. CHF 25’000 per child
• Direct federal tax: max. CHF 25’800 per child

✅ Requirements: When does Zurich accept the deduction?

To claim the deduction, these conditions must be met:

👧 The child …

• is under 14
• lives in the same household as the taxpayer who supports the child financially

🧾 The costs …

• are directly linked to the taxpayer’s employment, education/training, or inability to work
• are properly documented (invoices, receipts, payslips, bank transfers, etc.)

🏡 What typically counts as “third-party childcare”?

To make the terminology clear, here are the most common forms of third-party childcare:

• Daycare / KITA / childcare center
• After-school care / Hort / school-related childcare
• Childminder / Tagesfamilie / Tagesmutter
• Nanny
• Babysitter
• Grandparents – an important distinction:
  • Grandparents living in the same household: typically not considered third-party childcare (household community/family support).
  • Grandparents not living in the same household: if they are paid and everything is properly documented, it is usually treated as third-party childcare.

👥 Cohabiting couples & shared custody: Who claims how much?

If you are an unmarried cohabiting couple with children under joint parental authority living in the same household, you can generally claim half of the deduction each:

• max. CHF 12’500 per parent (Zurich, 2025) per child
• max. CHF 12’900 per parent (federal, 2025) per child

A different split is possible, but the parents must actively provide evidence for it.

The same principle applies to shared custody arrangements, provided there is joint parental authority: generally 50/50, unless you can prove a different allocation.

🚗 Pro tip #1: Travel costs to the childcare facility

Often overlooked: in many cantons, travel costs to and from the childcare facility (e.g., trips to daycare/KITA) may also be recognized as childcare-related costs.

🧑‍🍳 Pro tip #2: Employing a nanny/babysitter/grandparent? Deduct AHV/UVG contributions too

If you don’t pay childcare through an external provider but employ a caregiver in your private household (e.g., a nanny, babysitter, or grandparents not living in the same household), you often incur additional costs on top of the wage payments, such as:

• social security contributions (e.g., AHV/IV/EO/ALV)
• depending on the setup: accident insurance (BU/NBU) and daily sickness allowance insurance

These employer-related costs are frequently forgotten, but they can be part of the deductible third-party childcare costs—as long as the childcare is directly linked to employment/education/inability to work and everything is clearly documented.

🧩 Conclusion

Childcare costs can provide meaningful tax relief, especially for daycare/KITA, after-school care (Hort), childminders, or paid childcare through a nanny/babysitter. What matters most are the eligibility rules, the maximum limits (2025), and clean documentation.