Your Kids, Your Credits: A Complete Guide to Canadian Child Tax Benefits
What Every Canadian Parent Should Know About Tax Credits
If you’re raising kids, you might think tax time is just about juggling receipts - but did you know there’s a whole suite of tax benefits designed to help?
Raising kids in Canada is expensive. That’s not news to anyone who's shelled out for daycare, packed lunches, extracurriculars, or back-to-school supplies. What might be news, however, is just how many tax benefits, credits, and deductions are out there to support parents - especially if you know where to look and how to apply.
This blog is here to walk you through the major child-related tax supports available to Canadian families in 2025. Whether you’re a new parent, a single parent, or just trying to make ends meet while giving your kids every opportunity, I want to help you understand the systems designed to support you - because if you’re doing the hard work of raising the next generation, you shouldn’t miss out on the money you’re entitled to.
We’ll talk about:
The Canada Child Benefit (CCB) and Child Disability Benefit
The Eligible Dependent Credit
The Child-Care Expenses Deduction
Quebec’s Children’s Activities Credit and other provincial supports
Tips to maximize your benefits and plan smart for the future
Let’s break it down - clearly, compassionately, and with links to the actual CRA info (because transparency matters).
The Canada Child Benefit (CCB)
Let’s start with the big one. The Canada Child Benefit (CCB) is a tax-free monthly payment from the federal government to help with the cost of raising children.
Who qualifies?
You must live with the child and be their primary caregiver.
You (and your spouse/partner, if applicable) must file your taxes each year, even if you had no income.
You must be a Canadian resident for tax purposes.
You can apply through the Automated Benefits Application when registering a birth or using Form RC66 if you didn’t apply at birth. Apply for the CCB on Canada.ca
How much can you get?
As of July 2024 to June 2025:
Up to $7,997 per year (~$666/month) for each child under 6
Up to $6,748 per year (~$562/month) for children aged 6–17
Payments are calculated based on your Adjusted Family Net Income (AFNI), so higher-income families receive reduced amounts. The CRA recalculates the amount you are entitled to annually, based on your tax return.
Pro Tip: If your family income drops significantly (e.g., due to job loss, separation, etc.), contact the CRA right away - you may qualify for recalculated, increased benefits before the next tax cycle.
Child Disability Benefit (CDB)
If your child qualifies for the Disability Tax Credit, you may also receive the Child Disability Benefit (CDB) - up to $3,173 annually per eligible child (on top of your CCB).
Eligibility is tied to the Disability Tax Credit, which requires medical certification. Learn more and apply here: Canada.ca – CDB Info
Eligible Dependent (Equivalent to Spouse) Credit
This one trips people up - the Eligible Dependent Credit is a non-refundable tax credit for people supporting a dependent child or other qualifying relative.
Single parents often use it, and while it won’t result in a monthly payment, it reduces the amount of tax you owe.
Who can claim it?
You’re not claiming a spouse or common-law partner on your return
You supported a child under 18 who lived with you during the year
No one else is claiming that child as a dependent
How much?
For 2024 taxes, you can claim $2,616 on line 30500 of your return (this number is indexed and may change).
Important: Only one person per household can claim this per dependent, and shared custody has specific rules. If your situation is complicated, work with a tax professional to get it right - this credit often gets overlooked or misapplied.
Child-Care Expenses Deduction (Line 21400)
If you paid for child care so that you (or your partner) could work, go to school, or conduct research, you may be eligible for the Child-Care Expenses Deduction.
What qualifies?
Licensed daycares, nursery schools, and day camps
In-home caregivers who are 18+, provide receipts for services provided and are not a relative
Boarding schools and overnight camps (limits apply)
You’ll need to fill out Form T778, keep receipts, and make sure expenses weren’t reimbursed or subsidized.
Tips:
This is usually claimed by the lower-income spouse, unless they are a full-time student or medically unable to care for the child
Maximums vary by age and disability status
Cannot include tutoring, extracurriculars, or educational fees (that’s a different category)
Learn more: Canada.ca – Child Care Expenses.
Extracurricular, Fitness, or Arts Credits (Quebec-specific)
Unfortunately, the federal Children’s Fitness and Arts Tax Credits were phased out after 2017. However, some provinces - most notably Quebec - offer their own versions.
Quebec’s Tax Credit for Children’s Activities
Refundable credit worth 20% of eligible fees, up to $500 per child
Additional amounts possible for children with disabilities
Covers sports, arts, music, and other structured programs
Requires receipts; income thresholds apply (~$163,800)
Outside of Quebec, most parents won’t find a federal equivalent - but Saskatchewan, Manitoba, and others may have similar programs. Check your provincial government’s website or contact a tax professional.
Other Provincial and Territorial Extras
Many provinces administer their child benefits through the CRA - meaning your CCB application also triggers provincial payments. These vary depending on income, family size, and province.
Example: Saskatchewan Active Families Benefit
Fully refundable credit of $300 per child (or $400 with disability)
Available to families with AFNI under $120,000
For expenses related to organized physical or cultural activities
Your Notice of Assessment and CCB statements will indicate if you’re receiving provincial top-ups - but they’re often missed or not fully explained.
Tips to Maximize Your Child Tax Benefits in Canada
Let’s bring it all together with some practical advice:
1. Keep Your Taxes Filed - Even If You Don’t Owe
If you don’t file your return, the CRA doesn’t have the info it needs to calculate or continue your benefits. Even if your income is zero, file anyway.
2. Keep Receipts (Yes, All of Them)
Whether it’s daycare, activity fees, or shared custody agreements - keep digital and physical copies. The CRA doesn’t always ask, but if they do, you’ll be grateful you have everything handy!
3. Use CRA’s Child and Family Benefits Calculator
This tool is surprisingly helpful and relatively easy to navigate: CRA Benefits Calculator
4. Double-Check Shared Custody Rules
In shared parenting situations, benefits may be split. Do not assume you or your ex automatically gets the full amount - clarify with the CRA.
5. Work With a CPA Who Knows the System
Some credits and benefits are straightforward. Others - especially when there’s a disability, separation, or fluctuating income - get complicated fast. If in doubt, ask for help.
Let’s Talk About Why This Matters
The tax system in Canada is complex. We don’t always make it easy to understand what you qualify for - and for parents, that complexity is just one more layer of invisible labour.
You shouldn’t have to be a tax expert to claim the support you’re entitled to.
Whether you're a new parent navigating parental leave, a single parent trying to make their return work harder, a caregiver to a child with a disability, or just someone trying to raise kids in an increasingly expensive world...
There are resources, credits, and supports designed to help - but only if you know where to look.
If you're a parent in Canada and want to make sure you’re getting every credit and benefit you’re entitled to, let’s talk. Reach out HERE to connect!
You work hard to support your family - the tax system should support you, too. Let’s make sure you’re not leaving money on the table.
If this blog resonated with you, be sure to check out Maximize Your Tax Return: Top Deductions and Credits Canadians Miss - it’s full of practical tips for getting the most out of your return without the overwhelm.