Eligibility for the Alberta Child Care / Daycare Subsidy

While not all Alberta families qualify for this program, those who did received subsidy amounts until April 1, 2025, based on their annual family income. Now families who make more than $90,000 and have children receiving care through a licensed facility pay a maximum of $15 per day for full-time care.

Alberta Child and Family Benefit

The Alberta Child and Family Benefit is a program that provides financial assistance to individuals with lower and moderate incomes who have children under 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 from the ACFB since you do actually have to apply. However, there are a few requirements you must meet 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, 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. 

How Long Subsidy Approval Takes

While the exact time can vary based on your situation, most applications for the childcare subsidy program are processed within a few weeks, usually 3-6. If you meet certain eligibility requirements, you can receive a 2-month conditional subsidy immediately while the final assessment is being completed. 

Rules for Shared Custody Parents

In Alberta, if you have shared custody and each of you has at least 40% parenting time, you can both apply, and your eligibility is based on your individual incomes. It’s usually calculated by splitting the cost of the care or the benefit. The goal is to reflect both parents’ responsibility for the child’s expenses. 

Can Grandparents Qualify for Childcare Subsidy

Through the Kin Child Care Funding, low- and middle-income families can pay relatives to care for their child instead of using a child care program. The parents must be working, looking for work, or attending school, and the grandparent must not live at the same residence as the child. 

Indigenous Childcare Subsidy Options

Indigenous families have access to the same child care options as everyone else, as well as specialized supports through the Metis and Indigenous Children’s Services offices. 

Subsidy for Children with Special or Additional Needs

All subsidy options for children with special or additional needs in Alberta are provided through the Family Support for Children with Disabilities (FSCD) program. This will cover all additional costs beyond daycare costs. The subsidy for the child care itself is through the traditional Alberta subsidy. 

Income To Qualify For The Subsidy

Due to the federal government’s new childcare affordability initiative, 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. 

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 your family income, the child’s age, the program, and how often the child attends the program. Here are some amounts based on age and annual income. 

Extended Hours

For childcare subsidies, regular hours are considered to be between 6 am and 6 pm. Some people, however, require childcare outside these hours and on weekends as well. 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 of 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, you won’t qualify either, because overnight care has its own affordability grants and subsidies. 

School-Age Children Summer Care

Since the day costs for children attending school change in the summer, so do the subsidy rates. For July and August, the rates are increased. You don’t have to apply for this if you’re already receiving a subsidy; the new maximum subsidy rate listed will automatically apply in you qualify. 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 cost of affordable childcare to $10 per day by the end of 2025. Also, because of this grant, the Alberta government began expanding subsidy eligibility, allowing families with higher incomes to qualify. As of April 1, 2025, the amounts are now $15 per day, and families will be billed in full amounts per month with this rate. Individuals unable to qualify for a subsidy and make over $90,000 will still get this rate. 

How To Apply

The simplest way to apply for a 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 method before childcare starts, ideally as soon as the month begins.  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 for more information. If you’re approved, though, it’s important to remember that only licensed and regulated childcare programs qualify. 

Backdating Applications

When it comes to backdating applications, as long as you apply in the month that you want the subsidy to start, it will be backdated to the first day of that month. Even though the subsidy approval can take a few weeks, a subsidy decision letter stating your subsidy start and end dates, as well as the amount paid to your child care provider, will be sent to you once the approval is complete. 

Documents Needed to Apply

While the documentation will be a little bit different for each applicant, here is a general idea of what you will need:

• Your Notice of Assessment from your Canadian Tax Return
• Proof of employment/school enrollment
• Proof that your children are enrolled in a licensed facility
• Valid ID for you, your spouse, and your child(ren)
• A Verification of Valid Reason for Child Care Special Needs form if your child has special needs

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 in to your Alberta.ca account. 

Renewals should be done on the first day of the month your application expires. However, you do have until the end of the month to do so. 

Federal Vs Provincial Subsidy

Federal childcare subsidies, also known as federal childcare affordability grants, are given to childcare providers and are not based on 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. To start receiving these amounts, you need to complete 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. 

How Income is Calculated for Self-Employed Parents

When it comes to calculating income, self-employed income can be the most complicated. However, it generally takes your gross business revenue and subtracts the legitimate business expenses. This is line 15000 on your income tax return. 

When it comes to documentation, you’ll need to submit a Statement of Business or Professional Activities (Form T2125), income statements, or balance sheets to prove your net income. If your income differs significantly from your last tax return, then you may need to submit more current financial documents. This is usually bank statements or invoices.

Working From Home and Childcare Subsidy Eligibility

Those who work from home and have registered for child care spaces could still qualify for child care subsidy. Families earning $90,000 annually or less, including a partner’s income, are eligible to only pay the monthly parent fee. 

Newcomer and Refugee Family Eligibility Rules

In Alberta, protected person claimants, temporary residents with a valid work or study permit, and refugee claimants who fear prosecution may be eligible. The combined amount earned for families with children must be below $90,000, and the children must be in a grade ranging from full-time kindergarten to grade 6. Spots must be secured in licensed child care facilities. 

Do Stay-at-Home Parents Qualify?

In Alberta, there is a stay-at-home subsidy for parents of children aged 0-6 who attend a licensed preschool or an approved early childhood program. This is just one of the different subsidy types for low-income families in which one of the parents is not working or in school for more than 20 hours per week. 

What Happens if Your Income Changes Mid-Year?

When it comes to income changes, they must be reported to the Alberta Child Care Subsidy program in the same month they occur. Any changes to your household income or employment status, for you or your co-applicant, can influence the amount you receive for subsidy or change your eligibility. 

Penalties for Misreporting Income on Subsidy Applications

If there is any suspicion that you didn’t report the correct information, the Income Services Investigation Unit will investigate. This could result in reduced benefits, ineligibility, or even fraud charges under the Income and Employment Support Act or the Criminal Code of Canada.