Childcare tax credits for Ontario 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 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
Deduction — 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.