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.

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