How Much Do Foster Parents Get Paid in Ontario?

The financial reality of foster care in Ontario is one of the most searched — and most misunderstood — topics for prospective caregivers. People either underestimate what's available and assume they'll be out of pocket, or they overestimate it and expect a salary. Neither picture is accurate.

Here is the straightforward breakdown of what Ontario foster parents receive, what it covers, and what it doesn't.

What Per Diems Are — and Are Not

Ontario CASes pay foster parents a daily per diem — a per-child, per-day rate that is intended to cover the basic costs of caring for that child. The correct framing from the province's perspective is "reimbursement," not "pay." The per diem covers a child's share of food, housing costs, basic clothing, personal hygiene products, and incidentals.

Per diems are not a salary. They are not meant to compensate you for your time. Foster parenting is officially recognized as a professional role, but the financial structure assumes you have your own income and household expenses covered independently. Ontario law specifically requires that foster parents be "financially self-sufficient" — meaning the per diem supplements your existing household budget rather than replacing income.

That said, the per diems are meaningful amounts that do significantly offset the real cost of caring for an additional child.

Per Diem Rates by Care Level

Ontario's per diems are tiered based on the complexity of the child's needs. Rates vary somewhat between CASes and have not been uniformly indexed to inflation, so the figures below represent the typical ranges:

At the basic Level 1 rate, a foster family caring for one child at $39/day receives approximately $1,170/month. At $65/day, that's approximately $1,950/month. Treatment-level placements at $115/day generate approximately $3,450/month for that child.

Agencies like Safe Harbours cite basic rates of $75–$90/day, which is above average. Some smaller or rural CASes operate at the lower end. The rate you receive is negotiated with and determined by your CAS, and it will be specified in your foster care agreement.

Per Diems Are Tax-Free

This is the detail that surprises most people: foster care per diems in Ontario are non-taxable. They are not reported as income on your T1 personal income tax return. The Canada Revenue Agency does not count per diems as earned income, interest income, or any other taxable category.

For a foster family receiving $50/day per child, this is meaningful. The tax-equivalent value of $1,500/month non-taxable income is substantially higher than the same amount in taxable employment income.

This non-taxable status applies to the per diem itself. If you receive other employment income, self-employment income, or investment income alongside your per diems, those are still taxable in the normal way. The per diems simply don't enter into that calculation.

Additional Financial Supports

Beyond the daily per diem, CASes provide targeted funding for specific needs. These are not universal across all agencies, but the following are standard in most Ontario societies:

Initial Placement Allowance A one-time payment when a child first enters your home to cover immediate clothing needs and personal effects. The child may arrive with very little or nothing — this allowance covers getting them equipped.

Annual Allowances Most CASes provide annual or periodic funding for:

• Birthday gifts (for the child in your care)
• Holiday gifts (typically Christmas or equivalent)
• Back-to-school supplies and clothing

Medical and Dental All children in Ontario foster care are covered by OHIP for basic medical and emergency care. Most CASes also have supplementary plans that cover dental, vision, and prescription medications — items not covered by OHIP. You should confirm the specific supplementary coverage with your CAS at the time of placement.

Recreational Funding Sports registration fees, music lessons, summer camps, and extracurricular activities can often be approved and reimbursed by your caseworker. This requires advance approval in most agencies — don't assume it will be reimbursed after the fact.

Travel Costs If you are required to transport a child to access visits with birth family, medical appointments, or therapeutic services, mileage reimbursement is typically available.

What the Per Diem Does Not Cover

The per diem is designed to cover a child's share of household expenses. It does not cover:

• Your own time: There is no hourly rate for fostering. The per diem is a cost reimbursement, not wages.
• Major home modifications: If your home requires structural changes to meet licensing standards, those costs are yours.
• Exceptional child-specific costs: Large expenses beyond the per diem (specialized therapies, expensive medications, behavioral interventions) require CAS case worker approval and funding through a separate process.

Treatment-level placements (Level 4) exist precisely because the standard per diem is not adequate for children with intensive needs. If you are matched with a child requiring significant clinical support, insist that the placement rate reflects that complexity.

How This Compares to the Cost of Care

Research consistently shows that basic per diems, especially at the lower end, do not fully cover the actual costs of caring for a child when those costs are carefully tracked. Food, clothing, transportation, and the practical costs of adding a person to a household typically exceed $39/day in 2024-2025 when calculated realistically.

The higher rates (Level 2 and above) are more proportionate to actual costs. If you are matched with a child assessed at Level 1 but whose behavioral needs are clearly at a higher level, you can request a reassessment. The formal process for doing this is outlined in your foster care agreement.

The Ontario Foster Care Guide includes a breakdown of per diem rates across major Ontario CASes, how to request a rate reassessment, and a plain-language explanation of the tax treatment of foster care compensation — including what receipts and records you should keep even though the income is non-taxable.

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