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The childcare tax credit is changing in Quebec and parents could lose out

<img src="https://www.mtlblog.com/media-library/eric-girard-presents-the-quebec-budget-right-hands-holding-canadian-money.jpg?id=59184201&width=1200&height=800&coordinates=96%2C0%2C96%2C0"/><br/><br/><p>The Quebec government's new budget for 2025-2026 is bringing some big changes that could hit many parents' wallets. </p><p>On March 25, <a href="https://www.finances.gouv.qc.ca/Budget_and_update/budget/index.asp" target="_blank">Finance Minister Eric Girard</a> announced the province's new budget, which includes a historic deficit of $13.6 billion — and some cutbacks to the <a href="https://www.revenuquebec.ca/en/citizens/tax-credits/tax-credit-for-childcare-expenses/" target="_blank">childcare tax credit</a> are part of the plan. </p><blockquote class="rm-embed twitter-tweet" data-partner="rebelmouse" data-twitter-tweet-id="1904639195299065905"> <div style="margin:1em 0"></div> — (@) <a href="https://twitter.com/EricGirardMFQ/status/1904639195299065905"></a> </blockquote> <script async="" charset="utf-8" src="https://platform.twitter.com/widgets.js"></script> <p>Starting in 2026, the maximum eligible age for the refundable childcare tax credit will drop from 16 years old to 14 years old, with some exceptions.</p><p> According to <a href="https://www.finances.gouv.qc.ca/Budget_et_mise_a_jour/budget/documents/Budget2526_PlanBudgetaire.pdf" target="_blank">the budget</a>, this change is meant to "adapt tax expenditures to new economic and social realities." The government claims this measure will save $55.1 million over five years. The goal, as stated in the budget, is to "refocus tax assistance on families with younger children."</p><p>So, what counts as eligible childcare expenses?</p><p>The childcare tax credit covers a range of childcare expenses, including fees paid to a daycare that doesn't offer reduced-contribution spaces and various types of childcare services in schools or home-based settings.</p><p>However, since teenagers no longer attend early childhood centres or daycare services, this change mainly affects parents paying for summer camps, boarding schools, or day camps — especially for children between the ages of 14 and 16. Those payments used to qualify for the tax credit, but the upcoming changes will reduce eligibility.</p><p>Here's a breakdown of what's covered:</p><ul><li>$200 per week for an eligible child aged six or under.</li><li>$275 per week for an eligible child with a severe and prolonged mental or physical impairment (regardless of age).</li><li>$125 per week for any other eligible child aged over six but under 16 (soon to be under 14).</li></ul><p>Parents who rely on this tax credit to cover certain childcare expenses may want to take note and plan ahead.</p><p>The childcare tax credit cuts are part of Quebec's plan to tackle its $13.6 billion deficit, which makes up 2.2% of the province's GDP. The government's total spending for 2025-2026 is projected at $165.8 billion, including $156.1 billion for government operations and $9.7 billion for debt servicing. </p><p><em>Love this? Check out our <a href="https://www.mtlblog.com/notices/" target="_blank">MTL Blog noticeboard</a> for details on jobs, benefits, travel info and more!</em></p> <p><em>AI tools may have been used to support the creation or distribution of this content; however, it has been carefully edited and fact-checked by a member of MTL Blog's Editorial team. For more information on our use of AI, please visit our <a href="https://www.mtlblog.com/editorial-standards" target="_blank">Editorial Standards page</a>.</em></p><p><br/></p>