A tax guide for new and hopeful parents: planning for life’s milestones.

Parenting may be the most precious role we play in life, but it comes with a lot of financial considerations. From fertility credits, parental leave, tax-friendly educational savings plans, to monthly federal child benefits, there are many tax considerations that new and expecting parents need to navigate.  

Raising children comes with many expenses - and tax credits and benefits are a key way to maximize the money back in your pocket. Family and child benefits are often some of the most underrated tax credits, many of which can only be claimed by filing your tax return, which is why it’s important to file on time every year to ensure you get what you’re owed.

Check out some of the most common tax credits and considerations for new and hopeful parents below.  

Table of contents.

• Fertility tax credits for hopeful parents.
• Tax credits for adoptive parents.
• Tax considerations when on parental leave.
• Available tax credits for families.
• Provincial/Territorial tax benefits.
• Saving for your child’s education.  

Tax credits for fertility treatments.

The federal government broadened the Medical Expense Tax Credit (METC) to include more fertility and surrogacy-related expenses. This non-refundable tax credit can be used to lower the costs for treatments like IVF procedures and other assisted reproductive technologies. The amount you can claim for eligible expenses is the total amount paid minus either 3% of your net income or $2,834 – whichever is less.  This can be combined with provincial tax incentives specific to fertility treatments, which can significantly lessen the financial burden.  

It’s important to remember that you can only claim all or a portion of medical expenses that you haven’t been or will not be reimbursed for. For example, that means if you have health insurance through your employer that reimburses you for 80% of your expenses, you’ll only be able to claim the remaining 20% on your return.

Are there tax credits for adoptive parents?

Yes! Adoptive parents of children under 18 can claim eligible expenses including fees paid to a licensed adoption agency and legal fees on their tax return to help with the cost of adopting a child. For 2025, the maximum claimable amount is $19,580 per child. These expenses can be split in any way with a spouse or common-law partner so long as they don’t exceed the maximum amount. 

Parental leave tax considerations.

In Canada, we’re eligible for 1-year to 18 months of paid parental leave, at a rate of either 55% of your earnings up to a maximum of $729 per week for a year, or benefits can be spread across 18 months at a rate of 33% of your earnings up to $437 weekly.  

However, many new parents aren't aware that when the government sends you that cheque, they aren’t taking the full tax from it. This means, come tax time, you may owe additional taxes on that income. So, for example, someone in Ontario who earned about $35,000 in parental leave, and without any other credits or benefits considered, could owe more than $3,000 in taxes. If you aren’t expecting it, this can be a big shock, so it’s always best to put some money aside for taxes while you’re off on leave.  

Quebec residents have access to a different program, administered by the province. 

Federal family tax credits and benefits.

Canada Child Benefit: This is a tax-free monthly payment from the federal government to assist with the costs of raising a child. To determine your CCB amount, the Canada Revenue Agency (CRA) looks at factors like the number of children who live with you, their ages, if they qualify for the child disability amount, if you have full custody, and your adjusted family net income.  For the July 2025 – June 2026 time period, the maximum annual benefits are $7,997 per child under 6, and $6,748 per child aged 6–17. For children with disabilities, the maximum Child Disability Benefit is $3,411 per year per eligible child.  

Claimable childcare expenses: Canadian taxpayers can claim certain eligible childcare expenses like daycare, day camps, nursery schools, and nannies to reduce their taxable income. For the 2025 tax year maximum deductions are $8,000 per child under 7, $5,000 per child aged 7-16 and $11,000 for eligible children with disabilities. 

Provincial and territorial tax benefits and credits.  

Depending on the province or territory you live in, you may be eligible for additional tax credits and benefits including:

Alberta

Alberta Child and Family Benefit: tax-free quarterly payments for lower-to-middle income families with children under 18.

British Columbia

B.C. Family Benefit: tax-free monthly payments for families with children under 18.  

In addition, the B.C. government intends to introduce a new disability supplement in July 2027 to be paid alongside this benefit to provide additional support to families with children with disabilities.  

Manitoba

Manitoba Fertility Treatment Tax Credit: A refundable tax credit that allows eligible residents to claim 40% (up to $8,000 per year) of their fertility treatment costs for treatments received within the province.  

New Brunswick

New Brunswick Child Tax Benefit: non-taxable monthly payments to qualifying families with children under 18. These payments are combined with the federal Canada Child Benefit.

Newfoundland & Labrador

Newfoundland and Labrador Child Benefit: A provincial tax credit for families whose income is less than $28,990 and have children under 18 years of age.  

Northwest Territories

Northwest Territories Child Benefit: Provides non-taxable benefits to families with a net income under $80,000 (though only families with an income under $30,000 will receive the full benefit). The amount received depends on family net income and the total number of children under 6 and aged between 6 -17 in the family.  

Nova Scotia

Fertility and Surrogacy Tax Credit: Offers a credit of a maximum of $8,000 per year (based on up to $20,000 in eligible expenses) for treatment costs that meet the CRA’s medical expenses criteria.

Nova Scotia Child Benefit: Monthly payments for eligible families with children under 18. Amount received is based on family net income and number of children in the family and are made in conjunction with the federal Canada Child Benefit.  

Nunavut

Nunavut Child Benefit: Monthly non-taxable payments made to low-income families to assist with the cost of raising children.

Ontario

Fertility Treatment Tax Credit: A refundable credit that covers 25% of eligible fertility treatment costs up to a maximum of $5,000 per year (based on receiving up to $20,000 in eligible expenses). You must also claim these expenses as part of the federal METC.  

Ontario Child Benefit: Low-income to moderate-income families can receive up to $1,727 per child each year. The payments of this benefit are combined with the Canada Child Benefit.

Prince Edward Island

PEI Child Benefit: Non-taxable monthly payments made to families with one or more children under 18, have a family net income of $80,000 or less per year, and are eligible to receive the federal Canada Child Benefit.

Quebec

Quebec Family Allowance: In 2026, you can receive up to $3,068 per child in tax-free money, paid in four quarterly payments (up to $4,061 for single-parents). Additional amounts are paid for school supplies and single parents.  

Saskatchewan

Fertility Treatment Tax Credit: A refundable credit that allows for claiming of 50% of eligible expenses (up to a maximum of $20,000 in eligible expenses, resulting in a maximum credit of $10,000) for treatments provided in Saskatchewan. This credit can only be claimed once in a lifetime.  

Yukon

Yukon Child Benefit: non-taxable monthly payment for low and modest-income families. The amounts are combined with the federal Canada Child Benefit into a single monthly payment. 

The RESP: saving for postsecondary education.

When you have a child, you can open up a Registered Education Savings Plan (RESP) to begin saving for their postsecondary education. An individual can contribute up to $50,000 in a lifetime towards a RESP and the federal government will match 20% of the first $2,500 you contribute every year through the Canada Educational Savings Grant.  

This means an extra $500 in free money annually, and depending on your family net income, you can even qualify for additional grants!

While contributions to this account don’t lower your taxable income like RRSP contributions do, investment growth in this account is tax-deferred until the money is withdrawn, when it's taxed to the child, typically at a lower tax rate.

An H&R Block Tax Expert can help you determine the best ways to save for your future and your child’s future.  

Frequently asked questions.