Families in Ontario are getting a big helping hand in 2025. The Canada Revenue Agency (CRA) has confirmed a new Ontario Childcare Rebate, offering as much as $8,000 per year for every eligible child under age 7.
This benefit is designed to offset the rising cost of licensed childcare and simplify financial support by rolling multiple programs into one direct rebate. For many working parents, it’s long-awaited relief.
Let’s break down the eligibility rules, payment amounts by income level, how to apply, and why this rebate is such a game-changer for families across Ontario.
Table of Contents
Eligibility
To qualify for the 2025 Ontario Childcare Rebate, you’ll need to meet a few simple requirements:
| Eligibility Requirement | Details |
|---|---|
| Residency | Must be a permanent resident of Ontario |
| Tax Filing | Must have filed your 2024 income tax return |
| Child’s Age | Child must be under 7 years old |
| Childcare Type | Must use licensed childcare services |
| Household Income | Full benefit for income up to $90,000; phased for higher incomes |
The CRA will use your 2024 tax return and childcare expenses to determine your rebate amount, so keeping those records organized is key.
Amounts
The rebate works on a sliding scale. Lower-income families get the full $8,000 per child, while higher incomes receive reduced support. Here’s how it breaks down:
| Household Income Range | Maximum Rebate Amount |
|---|---|
| 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 tiered approach ensures the support goes where it’s needed most, while still helping middle-income families manage ever-increasing daycare fees.
Application
Getting your rebate is now easier than ever thanks to CRA’s digital systems. Here’s what to do:
- Log into your CRA My Account
- Go to the Childcare Expenses section tied to your 2024 return
- Make sure your licensed childcare receipts are uploaded and verified
- Update your direct deposit info for faster payment
The CRA started processing applications in July 2025. Payments are expected within 6 to 8 weeks after all documentation is reviewed. If there are no errors or missing information, it should be smooth sailing.
Impact
This isn’t just a financial rebate—it’s a policy designed to empower parents and improve early childhood development. Here’s why it matters:
- Encourages parents—especially mothers—to rejoin the workforce
- Reduces the stress and cost of full-time daycare
- Boosts demand for licensed childcare, which supports higher service standards
- Helps working families thrive by making dual incomes more realistic
The Ontario Childcare Rebate also supports economic growth. When parents can afford reliable care, they’re more likely to return to work, spend locally, and contribute to the economy in meaningful ways.
Advice
To make sure you don’t miss out, follow these simple steps:
- File your 2024 taxes early
- Double-check your CRA My Account details
- Upload all childcare receipts from licensed providers
- Watch your account in August or September for payment updates
The Ontario Childcare Rebate 2025 is a major milestone in the push for affordable childcare in Canada. With up to $8,000 per child and a streamlined CRA-managed process, it’s a win for working families, children, and the province as a whole.
It’s more than just a cheque—it’s a long-term investment in better futures.
FAQs
How much is the Ontario childcare rebate?
Up to $8,000 per child under 7, based on income.
Who qualifies for the rebate?
Ontario residents with licensed childcare and income under $200,000.
When will payments start?
Rebate processing began in July 2025; payments follow within weeks.
Do I need to apply manually?
No, apply through CRA My Account using tax data and receipts.
Is the rebate taxable?
No, the Ontario childcare rebate is non-taxable.
