Ontario families have reason to celebrate in 2025 as the Canada Revenue Agency (CRA) confirms a new Ontario Childcare Rebate, offering up to $8,000 per year per child under age 7.
With childcare costs skyrocketing and waitlists growing, this initiative is a game-changing financial boost designed to help families better manage licensed daycare expenses.
The rebate is structured to support low- and middle-income households, simplify access, and encourage workforce participation, particularly for working parents with young children. Here’s everything you need to know about eligibility, amounts, and how to claim this benefit.
What Is the $8,000 Ontario Childcare Rebate?
The Ontario Childcare Rebate is a new federal-provincial initiative designed to reduce out-of-pocket daycare costs for parents using licensed childcare providers.
Unlike tax credits that are applied during tax season, this is a direct cash rebate paid based on your previous year’s tax return and documented childcare expenses.
The goal is to streamline existing support programs into a more accessible, faster, and fairer system—providing immediate help to families managing childcare costs.
Eligibility Criteria for the 2025 Rebate
To qualify for the 2025 Ontario Childcare Rebate, parents and guardians must meet the following requirements:
| Eligibility Requirement | Details |
|---|---|
| Residency | Must be a permanent resident of Ontario |
| Tax Filing | Must have filed a 2024 income tax return |
| Child’s Age | Child must be under 7 years old |
| Childcare Type | Must be using licensed childcare services |
| Household Income | Full rebate for income up to $90,000; phased for higher incomes |
CRA will automatically review your 2024 tax return and childcare receipts to determine the final rebate amount. No separate application form is required unless more documentation is requested.
Rebate Amounts Based on Income
The rebate amount is based on a sliding income scale, ensuring greater support for families who need it most. Here’s how the payment structure works:
| Household Income Range | Maximum Rebate Amount per Child |
|---|---|
| Up to $90,000 | $8,000 |
| $90,001 – $120,000 | $6,000 |
| $120,001 – $150,000 | $4,000 |
| $150,001 – $200,000 | $2,000 |
| Over $200,000 | Not eligible |
Even families earning above $90,000 can receive substantial relief, making this rebate a broad support tool for Ontario’s working parents.
How to Apply for the Ontario Childcare Rebate
The CRA has integrated the application and payment process into your existing CRA My Account platform, making it easy and digital-first.
Follow These Steps:
- Log into CRA My Account
Access your secure CRA portal at My CRA Account. - Go to the Childcare Expenses Section
This is linked to your 2024 return and will show if receipts are missing or additional info is needed. - Upload Receipts
Submit all receipts from licensed childcare providers for verification. - Update Your Direct Deposit Details
Ensure payments are processed quickly and without delay.
Processing Timeline:
- Application processing began in July 2025
- Payments expected within 6 to 8 weeks
- Most eligible parents should see payments by August or September 2025
Why This Rebate Is a Game-Changer
This new rebate isn’t just about putting money into the pockets of parents—it’s about long-term social and economic impact:
- Encourages parents—especially mothers—to rejoin the workforce
- Makes licensed childcare more affordable and accessible
- Supports higher quality standards in early childhood services
- Strengthens local economies through higher employment and spending
When parents can count on affordable care, they’re able to work more hours, contribute more to the economy, and reduce their financial stress.
Expert Advice for Parents
To maximize your rebate and avoid delays:
- File your 2024 tax return early
- Save all receipts from licensed providers
- Regularly check your CRA My Account for updates
- Ensure your direct deposit info is current
The $8,000 Ontario Childcare Rebate for 2025 is a milestone initiative that reflects the government’s commitment to making childcare more affordable for all.
Whether you’re a single parent, a dual-income family, or facing rising daycare costs, this rebate offers the relief and stability you need.
By reducing financial barriers, this program empowers Ontario families to focus on what matters most—raising their children in a secure and supported environment.
Don’t delay—review your CRA My Account, organize your receipts, and watch for payments this summer. The opportunity to claim up to $8,000 per child is one that no eligible family should miss.
FAQs
Can I get the $8,000 rebate if I use unlicensed childcare?
No, only licensed childcare services qualify for the 2025 Ontario Childcare Rebate.
Is this rebate taxable income?
No, the rebate is not taxable and does not need to be reported as income on your return.
Do I need to apply separately for the rebate?
In most cases, no. CRA uses your 2024 tax return and childcare receipts to automatically assess eligibility and issue payments.