Families in Ontario are finally getting some relief from high childcare expenses. Starting in 2025, a new rebate program offers up to $8,000 per child to help cover the cost of licensed childcare services.
Administered by the Canada Revenue Agency (CRA), the Ontario Childcare Rebate is part of a larger effort to make early childhood care more accessible and affordable for working families.
This guide covers everything parents need to know about who qualifies, how much they can get, and when the money will arrive
What Is the Ontario Childcare Rebate?
The Ontario Childcare Rebate is a non-taxable, direct cash benefit provided to families with children under the age of 7 who use licensed childcare. The rebate is designed to be simple—no separate application is required.
It is processed automatically based on your 2024 tax return and is meant to provide meaningful financial assistance to help parents stay in the workforce and afford quality care.
Who Qualifies for the $8,000 Rebate?
Eligibility is based on a few key criteria. To receive the full $8,000 per child, a household must:
- Be a resident of Ontario
- Have filed a 2024 tax return
- Have at least one child under age 7
- Use licensed childcare providers
- Have a household income of $90,000 or less
Families with household incomes up to $200,000 may still qualify for partial benefits. It’s important to keep your childcare receipts and ensure they are from licensed providers, as these are required for verification.
Rebate Amount Based on Income
The Ontario Childcare Rebate uses a sliding scale to determine how much each family receives. The lower your household income, the higher your rebate.
Income-Based Rebate
| Household Income | Maximum Rebate (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 |
This structure ensures the greatest support goes to low- and middle-income households while still including a wide range of income brackets.
How to Apply for the Rebate
Good news: you don’t have to apply separately. The rebate is built into your 2024 tax return. Here’s how to make sure you receive it:
- Log in to your CRA My Account
- File your 2024 tax return
- Report all eligible childcare expenses
- Include or upload receipts from licensed childcare providers
- Verify your banking information for direct deposit
- Submit and monitor for CRA confirmation
If all details are submitted correctly, the rebate will be automatically processed and paid out directly to your account.
When Will Payments Be Made?
The first round of payments is expected to begin in July 2025, with most families receiving their funds within 6 to 8 weeks after their tax return is processed.
To avoid delays:
- File your taxes early
- Ensure your childcare documentation is complete
- Keep your direct deposit information up to date
Why This Rebate Matters
The Ontario Childcare Rebate provides significant support for families across the province. It’s not just a refund—it’s a strategic initiative with long-term benefits:
- Reduces financial pressure from rising childcare costs
- Supports dual-income households to stay in the workforce
- Encourages the use of licensed childcare providers
- Improves access to high-quality, regulated childcare
- Promotes economic participation and gender equity
For many, this benefit could make the difference between staying employed or having to give up work due to unaffordable childcare.
Important Reminders for Parents
To ensure you receive your full entitlement, remember the following:
- Only licensed childcare is eligible
- Keep all childcare receipts
- File your 2024 tax return on time
- Make sure your CRA account is accurate
- Households over $200,000 will not receive this benefit
This rebate is designed to be fast and simple, but documentation and eligibility must be accurate to ensure timely payments.
Not Eligible? Here’s Why
If you haven’t received the Ontario Childcare Rebate or were denied, possible reasons include:
- You did not file your 2024 tax return
- You used an unlicensed childcare provider
- Your household income exceeds the $200,000 limit
- You did not provide valid receipts
The rebate is strictly tied to tax records and official documentation. Ensuring all your paperwork is correct is the key to approval.
The Ontario Childcare Rebate 2025 is a powerful step forward in making childcare more affordable. With up to $8,000 per child, this non-taxable, easy-to-access benefit helps working families manage one of the largest household expenses.
Whether you’re a parent returning to work or simply looking to reduce financial strain, this rebate offers real support when it’s needed most. Make sure to file your taxes correctly, include all eligible expenses, and prepare for payments starting mid-2025.
FAQs
Do I need to apply separately for the Ontario Childcare Rebate?
No. It is automatically processed through your 2024 tax return based on eligible childcare expenses.
Is the rebate taxable income?
No. The Ontario Childcare Rebate is tax-free and does not affect your income tax calculation.
What if I used a babysitter or unlicensed provider?
Only licensed childcare expenses qualify for the rebate. Private or informal arrangements are not eligible.