Childcare tax credits for Ontario families
Tax credits can meaningfully reduce your childcare costs. They work differently than subsidies, though. Here's what's available and how to claim them.
This guide is for general information only. Tax situations vary. Consult a tax professional before filing to maximize your credits.
Canada Child Benefit (CCB)
What it is
Monthly tax-free payment for eligible families
Under age 6
Up to $7,437/year per child
Ages 6–17
Up to $6,275/year per child
How to get it
Income-tested. Apply through the CRA (usually automatic at birth registration)
The Canada Child Benefit (CCB) provides a monthly tax-free payment to eligible families. For 2025–26: up to $7,437/year per child under 6 and $6,275/year per child aged 6–17, income-tested.
Childcare Expenses Deduction (CRA)
Under age 7
Deduct up to $8,000/year per child
Ages 7–16
Deduct up to $5,000/year per child
Tax savings
A deduction, so it reduces taxable income at your marginal rate
Applies to
Licensed daycare, home daycare, nursery school, day camp, before/after-school care
The federal Childcare Expenses Deduction allows families to deduct eligible childcare costs from taxable income. Ontario residents can claim on their T1 return.
Ontario Provincial Credit: Ontario Child Care Tax Credit (CARE)
Credit value
Up to 75% of eligible childcare expenses, income-tested. Families earning under $20,000 receive the maximum rate.
How to claim these credits
Save your provider receipts
Keep records of all payments to licensed providers throughout the year. Providers must give you a receipt showing their name and, for individuals, their SIN or business number.
Complete Form T778
Child Care Expenses Deduction. In most families the lower-income spouse must claim it. Your tax software walks you through this.
File it with your T1 return
The deduction reduces your taxable income; the CCB is paid monthly and recalculated each July from your return.
Claim the Ontario provincial credit
Check Ontario instructions for claiming the provincial childcare credit on your return.