Tax Credits Every Canadian Parent Should Know About

Raising kids is rewarding, but let’s be honest—it’s also expensive. Every dollar counts, whether it is the cost of daycare or braces. You can receive tax credits and benefits in 2025 as a Canadian parent and help reduce the financial burden, with some payments being annually indexed for inflation. This guide is a breakdown of nine credit must-knows, such as the Canada Child Benefit, to assist you in saving big or pocket additional cash.  Read further to find out how to make the most out of these benefits, and how to make tax season a breeze. Here’s what is in store for your family.

Understanding Tax Credits and Benefits for Parents

The Tax Credits and Benefits of Parents. Tax credits reduce the amount of tax you owe, while benefits, like the Canada Child Benefit (CCB), put cash into your pocket. In 2025, these programs are designed to benefit families with children under the age of 18, to help alleviate costs like childcare or medical costs. The eligibility is usually based on income, residence, and family size. To access these benefits, you should always file your tax returns every year, even when you have a low income or no income. Calculate your benefits using the CRA’s Child and Family Benefits Calculator and keep track of receipts. For a broader look at available credits, check our guide on claiming tax deductions and credits in Canada.

Canada Child Benefit: Your 2025 Guide

Canada Child Benefit (CCB) is a monthly payment to families with children below 18 years of age that is tax-free. For the July 2025-June 2026 period, you will be eligible to receive up to $7,997 annually (or $666.41/month) per child under 6 or $6,748 (or $562.33/month) between 6 and 17 years of age, depending on your adjusted family net income.

• Eligibility: Canadian citizens with children under the age of 18; payments decrease with increasing income.
• Tip: Apply at birth via your province’s newborn registration to start payments fast. In Ontario, the Ontario Child Benefit is automatically assessed with your CCB application to receive additional support.

Child Disability Benefit for Special Needs

When your child has the Disability Tax Credit (DTC), the Child Disability Benefit (CDB) will provide a monthly top-up to your CCB. The maximum annual amount for July 2025-June 2026 is $3,411, which depends on income, but can greatly increase the support for special needs families.

• Eligibility: DTC-approved child under 18; requires medical documentation.
• Hint: Have your doctor fill out the DTC application as soon as possible because it may take months to be approved. Check CRA’s site for DTC details. Learn more about DTC and other credits in our tax deductions and credits guide.

Child Care Expense Deduction

The Child Care Expense Deduction allows you to deduct childcare expenses, such as daycare or summer camp. For 2025, claim up to $8,000 for kids under 7, $5,000 for ages 7-15, or $11,000 for DTC-eligible kids. (The amounts are indexed; use 2024 limits until 2025 figures are published)

• Eligibility: Expenses should allow you to work or study; lower-income spouse claims.
• Hint: Remember to retain receipts of all providers, including camps. In BC, explore the Affordable Child Care Benefit to supplement this deduction.

Adoption Expense Tax Credit

Adopting a child? The Adoption Expense Tax Credit is a 15 percent credit of up to $19,580 of eligible legal fees, travelling, or agency expenses. (Maximum credit is $2,937).

• Eligibility: 2025 expenses on adoptions finalized in Canada or overseas.
• Hint: To claim this credit, keep all the receipts related to adoption and attach them to your taxes.

Medical Expense Tax Credit

The Medical Expense Tax Credit is used to cover expenses such as fertility treatments or therapy greater than 3% of your net income or $2,833 (whichever is less).

• Eligibility: Expenses for you, your spouse, or dependents; includes prescription drugs.
• Tip: Bundle claims for the family member with lower income to maximize savings. For more ways to boost your refund, read our guide to optimizing your Canadian tax refund in 2025.

Amount for an Eligible Dependant                     

Single parents can claim up to $16,129 for one dependent under-18 via the Amount for an Eligible Dependent (plus the caregiver amount if the dependent is infirm).

• Eligibility: Single, separated, or divorced parents supporting a child.
• Hint: To make sure that no claims are rejected, confirm your marital status with CRA.

EI Maternity and Parental Benefits

New parents can access EI Maternity/Parental Benefits, offering 55% of earnings (up to $695/week) for up to 50 weeks (Standard Option). 

• Eligibility: 600 insurable hours within the last 52 weeks; applies to biological or adoptive parents.
• Hint: Apply early through Service Canada to prevent payment delays.

Canada Workers Benefit and GST/HST Credit

Canada Workers Benefit is available to low-income working parents (up to $1,590 single, $2,739 for families). The GST/HST Credit offers quarterly payments, depending on income and family size (e.g., up to $533 for a single person, more with children).

• Eligibility: Income-based; automatic if you file taxes.
• Hack: You should file every year in order to receive these automatic payments.

Maximize Your 2025 Savings

These credits can make a real difference—$666 monthly CCB payments, childcare deductions, or adoption support add up fast. Key takeaways:

• File taxes early to unlock benefits
• Calculate payments using the online tools of CRA

Consult a tax professional for complex claims like DTC and discover smart ways to fund your child’s education. Have questions? Visit CRA’s benefits page or share this article with other parents. Find out more ways to manage your finances by visiting the global investor article resources.