Credits and deductions for childcare expenses
About the information provided
Please note that Kaleido does not provide tax advice. Our aim is simply to present the information in an accessible way. Since we are not specialists, some nuances may have been missed. We recommend that you consult a tax expert to validate or clarify the application of the benefits mentioned on this page.
Childcare costs are a significant expense for many Quebec families. Fortunately, several tax credits and deductions are available to lighten your bill. Understanding these programs will help you better plan your finances and optimize reimbursement of your eligible childcare expenses.
Discover how the federal child care expense deduction and provincial tax credit work.
- Understanding tax assistance for childcare expenses in Canada
- Children’s eligibility for tax measures for childcare expenses
- Which parent can claim childcare expenses on their taxes?
- Which childcare services qualify for tax benefits?
- How does the federal child care expense deduction work?
- How does the Quebec tax credit for childcare expenses work?
- Federal vs. provincial: what parents need to understand
- What documents should be kept in order to declare childcare expenses?
- Common mistakes that reduce your refund
- Optimizing your childcare costs is a concrete step to support your budget
- Frequently asked questions
Understanding tax assistance for childcare expenses in Canada
Two tax mechanisms help reduce the impact of childcare costs on Quebec families: a federal deduction and a provincial tax credit. Although these measures have the same objective—to support families—they work differently.
- The federal child care expense deduction reduces the taxable income of the parent claiming it. In practice, this reduces the tax payable.
- The Quebec tax credit for childcare expenses, meanwhile, is a refundable credit calculated on the basis of your family income.
Children’s eligibility for tax measures for childcare expenses
Certain conditions must be met for childcare expenses to qualify for Canadian tax measures. Here are the main criteria to be aware of.
| Criteria | General rule |
|---|---|
| Child’s age | 16 years of age or younger during the tax year for the federal deduction 14 years of age or younger during the tax year for the Quebec tax credit |
| Residence | The child must live with the person paying the childcare expenses |
| Family connection | The child must be that of the taxpayer or their spouse |
| Dependent child | The child must be a dependent of the parent or spouse |
| Children with disabilities | No age limit if the child has a mental or physical disability |
| Child’s maximum income | The child may be eligible if their own annual income does not exceed certain tax thresholds |
Change in age eligibility for provincial tax credit
Starting with the 2026 tax year, the maximum age of an eligible child will be reduced from 16 to 14 for the Quebec tax credit for childcare expenses. However, the rules remain unchanged for children with physical or mental disabilities.
You can consult the news about this change from Revenu Québec.
Which parent can claim childcare expenses on their taxes?
The rules for claiming eligible childcare expenses vary slightly between Canada and Quebec. The federal child care expense deduction must generally be claimed by the parent with the lower net income in the couple. Barring exceptions, this rule is designed to distribute tax benefits equitably between both parents.
- The rules for the Quebec tax credit for childcare expenses are more flexible. The parent paying the childcare expenses can claim the credit. In the case of shared custody, each parent can claim the childcare expenses they have actually paid. The tax credit calculation will be based on the family income of the parent claiming the expenses.
Which childcare services qualify for tax benefits?
Childcare costs are the expenses you pay to have your child looked after while you work, study or look for a job. Depending on the type of service you choose, you may be eligible for the federal deduction, the Quebec tax credit, or both.
Eligibility for the main daycare services is as follows
| Daycare services | Federal deduction | Provincial tax credit (QC) |
|---|---|---|
| CPE (childcare centre) or subsidized daycare service |
Yes | Generally not, since the costs are already reduced |
| Non-subsidized daycare | Yes | Yes |
| In-home babysitter (with receipt and SIN) |
Yes | Yes |
| Day camps | Yes | Yes |
| Pre-school or kindergarten | Yes, if the costs are related to childcare | Yes, depending on the nature of the service |
Subsidized versus non-subsidized daycare: tax differences
Quebec’s tax credit applies mainly to unsubsidized daycare spaces, where parents generally pay higher fees. In contrast, in a CPE or subsidized daycare centre, the parental contribution is already reduced at source thanks to government funding.
How does the federal child care expense deduction work?
The federal child care expense deduction is claimed when you file your tax return, using Form T778, and reduces your taxable income. In practical terms, this means that a portion of your childcare expenses is deducted from your income before taxes are calculated. Result: less taxable income... and less tax owed.
For the period from July 2025 to June 2026, the maximum deductible amounts per year are set at:
- $8,000 per child under 7
- $5,000 per child aged 7 to 16
- $11,000 per disabled child
To put it simply: if a parent earns $60,000 and claims $8,000 in eligible childcare expenses, their taxable income could be reduced to $52,000. The deduction therefore reduces the proportion of income subject to tax. A tax break that brings a smile!
How does the Quebec tax credit for childcare expenses work?
In Quebec, parents can benefit from a tax credit for childcare expenses, a refundable credit calculated according to family income: eligible childcare expenses are multiplied by a rate determined according to your household income. The principle is simple: the lower your family income, the higher your childcare reimbursement.
The tax credit rate
The tax credit rate generally ranges from 67% to 78% of eligible expenses, depending on your family income. However, there is an annual ceiling on expenses. For 2026, the maximum eligible amounts—indexed annually to take account of changes in the cost of living—are:
- $12,525 per child under 7
- $6,305 per child aged 7 to 14
- $17,145 per disabled child
For example, a family paying $10,000 in eligible childcare expenses could receive a refund of approximately $7,000 if their credit rate is 70%.
Advance payments of the tax credit are possible
Did you know that you can request advance payments for childcare expenses? This allows you to receive your tax credits during the year, rather than waiting until you file your tax return. You make the request to Revenu Québec by filling out form TPZ-1029.8.F. Once your request is accepted, payments are made each month to help cover your expenses.
The amount to which you are entitled is calculated on the basis of an estimate of your annual expenses and family income, then adjusted to actual amounts when you file your tax return.
Federal vs. provincial: what parents need to understand
The comparison between the federal child care expense deduction and the Quebec tax credit for childcare expenses is based on three main elements: taxability, how the amount is calculated and who can claim it.
| Element | Federal (Canada) | Provincial (Quebec) |
|---|---|---|
| Type of assistance | Tax deduction | Refundable tax credit |
| How it works | Reduces taxable income | Reimburses a portion of expenses paid |
| Who can claim | Parent whose income is lower (in general) | Parent who pays the expenses |
| Maximum eligible amounts (2026) |
Fixed amount • $8,000 (under age 7) • $5,000 (ages 7 to 16) • $11,000 disabled child |
Variable amount (rate of 67% to 78% depending on income) • $12,525 (under age 7) • $6,305 (ages 7 to 14) • $17,145 child with disabilities |
| Actual impact | Reduced tax liability | Direct reimbursement of childcare costs |
Family scenarios: how much can you really save?
To better understand the real impact of tax measures for childcare expenses, here are three simple examples. Amounts are presented as a guide and may vary according to family situation, income and type of daycare.
Scenario 1 – Single-parent family with 2 children
- Family income: $55,000
- Child aged 3 (non-subsidized daycare): $10,000/year
- Child aged 7 (day camp + school daycare): $3,000/year
- Total expenses: $13,000
Estimated financial aid:
- Quebec tax credit: $7,000
- Federal deduction: $1,000
- Value of tax benefits: $8,000
Scenario 2 – Couple with 2 children
- Family income: $120,000
- Child aged 2 (non-subsidized daycare): $12,000/year
- Child aged 6 (day camp + school daycare): $2,500/year
- Total expenses: $14,500
Estimated financial aid:
- Quebec tax credit: $3,000
- Federal deduction: $1,200
- Value of tax benefits: $4,200
Scenario 3 – Couple with 3 children, including a disabled child
- Family income: $95,000
- Child aged 4 (non-subsidized daycare): $10,000/year
- Child aged 8 (day camp): $2,000/year
- Disabled child aged 10 (in-home babysitter + respite care): $6,000/year
- Total expenses: $18,000
Estimated financial aid:
- Quebec tax credit: $7,500
- Federal deduction: $1,800
- Value of tax benefits: $9,300
What documents should be kept in order to declare childcare expenses?
To claim eligible childcare expenses, you must hold on to certain documents. These documents are used to confirm the calculation of your tax credit and to justify the reimbursement of your childcare expenses in the event of an audit:
- Official receipts from daycare centre or daycare service;
- Babysitter’s social insurance number;
- Proof of payment;
- Service contracts or agreements.
The drawer full of papers you’re “saving for later” could well become your best ally at tax time. Use it wisely!
Simplify your tax preparation and avoid oversights!
Taking a moment to gather the right documents before filing your tax return can save you a lot of time. Use our Express guide to preparing your taxes to take full advantage of the credits and deductions to which you are entitled.
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Common mistakes that reduce your refund
Be careful, as some mistakes can reduce your childcare reimbursement. For example:
- Declaring childcare expenses from the wrong parent;
- Omitting certain eligible daycare expenses such as day camps;
- Confusing eligible and non-eligible expenses;
- Misjudging advance payments for childcare costs.
Good organization and a clear understanding of these rules will keep you from falling into a trap.
Optimizing your childcare costs is a concrete step to support your budget
Childcare programs can provide important financial support for your family. Since every situation is unique, don’t hesitate to consult a tax professional to fully understand your options.
If you receive a tax refund and you’re not sure how to use it effectively, this could be a great opportunity to invest in your child’s post-secondary education by contributing to their RESP!
FAQ
Yes, as long as you obtain an official receipt showing the name and SIN of the person who provided the service. Without this information, eligible childcare expenses may be denied.
Each parent can declare the childcare costs they have actually paid. Tax rules may vary depending on the custody arrangement and individual income.
Yes, day camps and certain summer camps can be considered as eligible childcare expenses, if their main purpose is to care for children.
The federal child care expense deduction reduces your taxable income, while the provincial childcare expense tax credit reimburses a portion of your expenses.
As a general rule, no. The child must be under 16 for Canada or under 14 for Quebec (as of 2026), except in certain special situations, such as a disability.
