Childcare expenses in Québec: how do the Québec credit and the federal deduction work?

Short answer: Québec gives a refundable tax credit of 67% to 78% of eligible childcare costs, depending on family income, and you can receive it in advance every month. Federally, the same costs give a deduction (line 21400), usually claimed by the lower-income spouse. For 2026, the Québec credit only covers children under 14, down from 16.

The Québec credit: rates and limits for 2026

The credit equals your eligible expenses times a rate based on family income. For 2026, the rate is 78% up to $25,305 of family income, slides down to 70% between $51,225 and $122,290, and is 67% above that.

Eligible expenses are capped per child for 2026:

  • $12,525 for a child under 7 at December 31
  • $17,145 for a child with a severe and prolonged impairment
  • $6,305 for any other eligible child

Starting with the 2026 tax year, the maximum age of an eligible child drops from 16 to 14: the child must be under 14 at some point in the year. There is no age limit for a dependent child with a physical or mental infirmity.

What counts, and what doesn't

  • Counts. Non-subsidized daycares and home childcare, school daycare on pedagogical days (above a set daily amount), day camps, a babysitter at home (exceptions apply for family members), extra fees for overtime care, and camps or boarding schools within weekly limits.
  • Doesn't count. The basic parental contribution for a subsidized (reduced-contribution) space. Only extra charges above it may qualify.
  • Proof. The provider must give you an RL-24 slip. Receipts are no longer accepted, except in some cases such as a provider outside Québec.

You claim the credit on Schedule C of your TP-1. Either spouse can claim it, or you can split it.

Getting it every month: advance payments

  1. You estimate a credit of more than $1,000 for the year (unless you also expect a work premium over $500).
  2. You apply in My Account for individuals, or by mail with Form TPZ-1029.8.F-V. Your provider fills in Form TPZ-1029.8.F.A-V with the fees and days of care.
  3. Apply by December 1 of the previous year to get 12 equal payments. The final deadline for a given year is October 15 of that year.
  4. Payments arrive by direct deposit on the 15th of each month.
  5. At tax time you get an RL-19. Enter the box C amount on line 441, and Schedule C settles the difference.

The federal deduction

On the federal return, childcare is a deduction on Form T778, generally claimed by the spouse with the lower net income. The yearly limits are $8,000 per child under 7, $5,000 per child aged 7 to 16, and $11,000 for a child eligible for the disability tax credit. The total can't exceed two-thirds of the claimant's earned income. Note the federal age limit stays at 16, so a 15-year-old at day camp can still count federally but not in Québec for 2026.

An example

Sara and Karim have a family income of $90,000 and pay $12,000 in 2026 to a non-subsidized daycare for their 4-year-old. Their Québec rate is 70%, so the credit is $8,400. Paid in advance, that's $700 a month. Federally, Sara, who has the lower income, deducts the $12,000 up to the $8,000 limit for a child under 7. Our tax documents checklist reminds you to collect the RL-24 by the end of February.

Want us to handle it?

Book a free 30-minute session at soleraaccounting.ca/rendez-vous or call 450 612-7223. We can check your RL-24s, set up advance payments and decide who claims what on each return. Service in French, English and Arabic.

This article is general information, not personalized tax advice.

Frequently asked questions

Is the Québec childcare credit refundable?

Yes. You receive it even if you owe no tax, either as a refund after filing or as monthly advance payments.

Does a subsidized daycare space give a Québec credit?

Not for the basic parental contribution. Only extra charges above that contribution may qualify, as shown on the RL-24.

My child turns 14 in 2026. Can I still claim day camp?

Yes, for 2026. For the Québec credit, the child must be under 14 at some point in the year, so a child who turns 14 during 2026 still qualifies. A child who is 14 or older for the whole year no longer does. The federal deduction still covers children who are under 16 at some point in the year.

Sources

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