Eligibility for the Alberta Child Care / Daycare Subsidy

While not all Alberta families qualify for this program, those who do will receive subsidy amounts until April 1, 2025 based on their annual family income. After April 1, some changes will be made to the program. 

Alberta Child and Family Benefit

The Alberta Child and Family Benefit is a program that offers financial assistance to those with lower and moderate incomes who also have children under the age of 18. The eligibility criteria include:

• Being an Alberta resident
• Filing a tax return
• Meeting the income criteria
• Having one or more children under the age of 18
• Being Canadian citizens or permanent residents

The good thing about the Alberta Child and Family Benefit is that it’s a non-taxable payment that doesn’t affect any other programs that you could qualify for. This is because these payments aren’t included in your annual taxable income. Plus, applying for this program is easy since you don’t actually have to apply. As long as you receive the Canada Child Benefit and file your annual tax return, you’ll start receiving this benefit if you’re one of the eligible families. 

How The Child Care Benefit Works

The Childcare Benefit works a bit differently than the ACFB since you do actually have to apply. However, there are a few requirements that you need to meet in order to apply. They should be newborn to grade 6 and be enrolled in one of the following options:

• A licensed facility-based program ( this includes daycare, out-of-school care, and preschools)
• Group family care centres 
• Licensed day-home childcare programs

Once you’ve applied, then the amount that you qualify for to help cover the cost of childcare spaces is based on how much income you earn in a year. This means that the amounts are individual to each applicant. As of April 1, though, these amounts will change for some age groups. 

Income To Qualify For The Subsidy

Due to the new childcare affordability initiative from the federal government, the income limit for childcare subsidies has increased. However, the requirements for the childcare program change based on the child’s age and the type of childcare arrangements you make. Let’s take a look. 

0 to Kindergarten Age During Regular School Hours

For this age group, families with a gross annual income under $180,000 a year get extra subsidies to reduce the cost of childcare. There are also federal affordability grants that are paid directly to the childcare provider to further reduce the cost. Here are the maximum subsidy rates for this age group based on income thresholds. 

For those who aren’t enrolled full-time, then prorated subsidy amounts will apply. This is because payment amounts are based on the hours the child attends childcare. 

Kindergarten to Grade 6 Outside of School Hours

For this age group, families with gross family income under $90,000 annually are eligible for this subsidy. The amount you receive is determined by multiple factors, including family income, the age of the child, the program and how often the child attends the program. Here are some amounts based on age and annual income. 

Preschool

When it comes to preschool subsidy amounts, as of April 1, 2025, the subsidy will no longer apply. The flat fee rate of $15 per day will be in effect. Those who would qualify for a subsidy will receive $100 off the total amount. 

Extended Hours

When it comes to childcare subsidies, the regular hours are considered to be between 6 am and 6 pm. Some people, however, require childcare outside of these hours as well as on weekends. If you qualify, then you could start receiving an additional $100 per month, known as the extended hours subsidy. That said, there are some stipulations. 

These stipulations include that the child must be in a licensed program that offers extended hours care. You must also have the child registered for 4 hours of extended care per week. If you’re getting overnight care for your child, then you won’t qualify either because overnight care has its own overnight affordability grants and subsidies. 

School Age Children Summer Care

Since the day costs for children attending school change in the summer, then so do the subsidy rates. For the months of July and August the rates are increased. You don’t have to apply for this if you’re already receiving subsidy, the new rates will automatically apply. However, you’ll be notified if your subsidy benefits change.

Child Care Affordability Grant Alberta

Affordability grants in Alberta are given to licensed childcare programs to reduce the overall cost to Alberta residents. These amounts are arranged under the federal-provincial childcare agreement to support childcare providers, and the aim is to reduce the amount of affordable childcare to $10 per day by the end of 2025. Also, because of this grant, the Alberta government was able to start expanding subsidy eligibility, allowing families with higher incomes to get approval. As of April 1, 2025 the amounts will be $15 per day and families will be billed in full amounts per month with this rate. 

How To Apply

The simplest way to apply for childcare subsidy is to do so online. You can fill out the Child Care Subsidy Application as well as submit the Declarations and Canada Revenue Agency Consent Form. However, the CRA form only needs to be completed just once. If you don’t want to apply online though, you can still use paper forms. 

One thing you do need to consider, though, is when to apply. You should apply the moth before the childcare starts. Ideally, as soon as the month starts.  Once you have completed the application, you will then receive an estimated subsidy amount. 

This amount isn’t definitive, though and could change during the assessment process. Your subsidy approval letter will give you the final amount.  You can also contact the Alberta Supports Contact Centre is you need more information. If you’re approved, though, it’s important to remember that only licensed and regulated childcare programs qualify. 

Child Care Subsidy Renewal

Once you have a subsidy approval, you don’t need to restart the whole process. You can then just renew your application. However, this has to be done before your current application expires. All you have to do is log into your Alberta.ca account. 

When it comes to renewing, it should be done on the first day of the month that your application expires. However, you do have until the end of the month to do so. 

Federal Vs Provincial Subsidy

Federal subsidies for childcare, also known as federal childcare affordability grants, are given to childcare providers and have nothing to do with individual income. This grant allows childcare providers to reduce their overall costs, save Canadians money, and even allow them to afford childcare. The ultimate goal of this program is to reduce childcare costs to $10 per day. 

Provincial subsidies are given to those who can demonstrate a financial need. In order to start receiving these amounts, you need to fill out an application and receive approval. This approval will determine how much the provincial government will subsidize childcare. There will still be a portion that you need to pay, but this amount will vary for each individual. 

Childcare Subsidies And Tax Deductions

In Canada, whether you qualify for the Alberta childcare subsidy or not, you can claim childcare expenses on your annual income tax return. Specifically, you can claim childcare fees related to day nursery schools, daycare centres, educational institutions, and caregivers, even if you pay reduced fees. This isn’t the only expense you can claim for your child either. You can also claim medical-related tax deductions and education-related tax deductions. 

Final Thoughts

Raising children in Alberta and throughout Canada can be expensive. While the federal government offers the federal benefit of the Canada Child Benefit, those who live in Alberta can also qualify for other programs to help reduce the financial burden. Those who have low to moderate annual incomes can receive the Alberta Child and Family Benefit as well as the Childcare Subsidy. 

With both of these benefit programs, the amount that you receive is based on what your household income is. With the childcare subsidy, those with an income below $180,000 can qualify for some benefits, while others have a maximum income eligibility of $90,000. You also need to apply for the childcare subsidy. However, approval can mean a significant decrease in your childcare costs.