When you have a baby in Canada, several tax credits and deductions become available to you and your family. The Canada Child Benefit (CCB) is the primary payment, providing monthly cash to eligible families based on income and the number of children. You may also claim childcare expenses on your tax return, and opening a Registered Education Savings Plan (RESP) can unlock the Canada Education Savings Grant (CESG). Understanding these benefits and how they affect your overall tax situation helps you keep more money in your family's budget. The CCB is a tax-free monthly payment from the Canada Revenue Agency (CRA) to parents or guardians of children under 18. This is not a tax credit you claim on your return. Instead, it is automatically calculated based on your family net income from the previous tax year. Key details about the CCB for 2026: Maximum benefit: approximately $7,437 per child under 6, and $6,275 per child aged 6-17 (indexed annually) Payment is reduced for families earning above $35,894 net income The benefit phases out completely at higher income thresholds You must apply to receive it, even if you have no tax owing To start receiving CCB, apply through CRA My Account
You must apply to receive the CCB. It is not automatic, even if you file your tax return. Apply through CRA My Account, by calling 1-800-387-1193, or by submitting Form RC66 by mail.
No. In most cases, only the lower-income spouse can claim childcare expenses on their return. There are limited exceptions for separated or divorced spouses. Check the CRA guidelines for your specific situation.
The CCB is a monthly tax-free payment based on family income and number of children. Childcare expense deductions reduce your taxable income if you paid for care to work or study. You can receive both benefits if you are eligible.
Open an RESP as soon as possible after your child is born. You can claim up to 20 years of grant room, so even if you open it later, you can catch up on missed years (up to lifetime limits).
EI maternity and parental benefits are taxable income. They may increase your net income in that year, which could reduce your CCB in the following year. However, you will likely still qualify for a substantial benefit.