Published | Category : Income tax - individuals
Changes to the Tax Credit for Childcare Expenses
To help families with high unsubsidized childcare expenses, the Ministère des Finances has announced changes to the refundable tax credit for childcare expenses.
Increased tax credit rates
The tax credit rate brackets have been adjusted. The rates for 2021 are shown in the table below.
| Family income ($) | Tax credit rate (%) | |
|---|---|---|
| more than | not more than | |
| - | 21,000 | 78 |
| 21,000 | 37,030 | 75 |
| 37,030 | 38,400 | 74 |
| 38,400 | 39,780 | 73 |
| 39,780 | 41,135 | 72 |
| 41,135 | 42,515 | 71 |
| 42,515 | 101,490 | 70 |
| 101,490 | or more | 67 |
Increased expense limits
Certain childcare expense limits have been increased as of 2021.
- For a child who is under 7 at the end of the year, the limit has been increased from $9,825 to $10,400.
- For a child with a severe and prolonged impairment in mental or physical functions, the limit has been increased from $13,445 to $14,230.
Advance payments
Advance payments for 2021 will not be adjusted to reflect the changes. However, the rate and expense limit increases will be taken into account in the 2021 income tax return.
For more information, see information bulletin 2021-8 on the Ministère des Finances website. The website also has a tool for calculating the net daily cost of your childcare services.