Families in Ontario are finally getting some well-deserved relief in 2025, thanks to a brand-new rebate from the Canada Revenue Agency (CRA). The Ontario Childcare Rebate is officially rolling out, offering up to $8,000 per year per child under the age of 7.
This move is aimed at tackling the high cost of licensed childcare and giving parents some breathing room in their budget.
Let’s break down how this works, who qualifies, and how to make sure you get every dollar you’re entitled to.
Table of Contents
Eligibility
To receive the full Ontario Childcare Rebate in 2025, you’ll need to meet a few key criteria as laid out by the CRA. These aren’t overly complicated, but it’s important to check all the boxes:
| Eligibility Requirement | Details |
|---|---|
| Residency | Must be a permanent Ontario resident |
| Tax Filing | Filed a 2024 income tax return |
| Child’s Age | Under 7 years old |
| Childcare Type | Must use licensed childcare |
| Income Cap | Full rebate up to $90,000 household income |
Your 2024 Notice of Assessment will be used to determine both your income level and your claimable childcare expenses.
Amounts
So, how much will you actually get? That depends on your income. The CRA has introduced a tiered rebate system to make sure families who need help the most get the biggest payout.
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 design promotes fairness, helping lower and middle-income households manage childcare costs while still giving partial support to others.
Application
Getting the rebate is way easier than applying for some of the older childcare credits. Here’s what you need to do:
- Log into your CRA My Account
- Navigate to the Childcare Expenses section linked to your 2024 tax return
- Upload or verify licensed childcare receipts
- Make sure your direct deposit info is up to date
Rebate processing began in July 2025, and families can expect to receive their money within 6 to 8 weeks, assuming there are no errors or missing documents in the application.
Impact
This rebate isn’t just a financial handout—it’s a practical investment in Ontario families. Here’s why it matters:
- Encourages more parents (especially moms) to return to work
- Eases the pressure of daycare costs, which can often feel like a second rent
- Promotes the use of licensed childcare, improving overall standards
- Helps the economy by enabling dual-income households
It’s part of a wider national vision to make early childhood education affordable and accessible for everyone.
Planning
If you’re hoping to benefit from this rebate, now’s the time to act. Make sure:
- You’ve filed your 2024 taxes
- You’re using licensed childcare providers
- Your CRA profile and direct deposit info are up to date
- You save your childcare receipts
This isn’t just about getting money back—it’s about investing in your child’s future and making your family’s present a little less stressful.
The Ontario Childcare Rebate 2025 is a much-needed win for families across the province. With a simplified application process and meaningful financial support, it’s designed to make life just a little easier for parents juggling work, kids, and everything in between.
FAQs
How much is the Ontario Childcare Rebate?
Up to $8,000 per year per child under age 7.
Who qualifies for the rebate in 2025?
Ontario residents with licensed childcare and income under $200k.
How do I apply for the rebate?
Through CRA My Account using 2024 tax info and receipts.
When will I get my rebate money?
Within 6–8 weeks after CRA verification.
Is the rebate only for licensed childcare?
Yes, only licensed childcare expenses qualify.
