Childcare tax credits for Nova Scotia families
Tax credits can meaningfully reduce your childcare costs — but they work differently than subsidies. 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 tax-free monthly payments to eligible families. For 2025–26: up to $7,437/year per child under 6 and $6,275/year per child 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
Deduction — reduces taxable income at your marginal rate
Applies to
Licensed daycare, home daycare, nursery school, day camp, before/after-school care
Nova Scotia residents can claim the federal Childcare Expenses Deduction on their T1 return.
Nova Scotia Provincial Credit — Not available
Nova Scotia does not have a separate provincial childcare tax credit. The main financial supports are the CWELCC fee reductions, the Affordable Childcare Benefit, and the federal deductions.
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.
Keep your CCB up to date
File your taxes every year even with no income — CCB payments stop if your return isn't filed.