# Having a baby: what changes for your taxes

> What changes for your taxes when you have a baby in Canada: the Canada Child Benefit, leave payments, childcare costs and the returns you need to file

After a baby arrives in Canada, apply for the Canada Child Benefit once the birth is registered. It is tax-free, and it is recalculated from your family income. Employment Insurance leave payments are taxable, daycare costs can often be deducted by the lower-income parent, and both parents need to file a return for the benefit to keep flowing.

## How do I get the Canada Child Benefit?

Apply for the Canada Child Benefit as soon as the birth is registered. It's a monthly payment, and how much you get depends on your family income and the number and ages of your children. The good part: it's tax-free, so it doesn't add to your income. The CRA's [Canada child benefit overview](https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html) explains who qualifies. You can estimate yours with the [child benefit calculator](https://tax-services.ca/calculators/family-benefits/canada-child-benefit), and the article on [child benefits and credits by age](https://tax-services.ca/articles/child-benefits-and-credits-by-age-canada) shows how the picture shifts as your child grows.

## Is maternity and parental leave pay taxable?

Yes. Maternity and parental payments from Employment Insurance are taxable income, and some tax may be taken off at the source. Your slip arrives the following February. Expect a smaller paycheque than you had at work, and set a few bucks aside in case you owe a bit at tax time. The [maternity and parental leave calculator](https://tax-services.ca/calculators/family-benefits/maternity-parental-leave) shows what you might receive, and the [EI calculator](https://tax-services.ca/calculators/family-benefits/ei-calculator) covers the rest. Choosing between the two parental options? Read [standard versus extended parental benefits](https://tax-services.ca/articles/parental-benefits-standard-vs-extended) first.

## Can I deduct childcare costs?

Often, yes. Keep the receipts from the daycare or caregiver. The CRA's page on [who can claim the deduction](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21400-child-care-expenses/who-claim-deduction.html) says it is generally the spouse or common-law partner with the lower net income, even if that income is zero, with a few exceptions. The [child care expense deduction calculator](https://tax-services.ca/calculators/income-tax/childcare-expense-deduction) shows the tax saved. Other credits also change once you have a child, and the [tax credits calculator](https://tax-services.ca/calculators/income-tax/tax-credits) covers the common ones.

## Why does filing on time matter so much?

The benefit is recalculated from your return, so a late or missing return, yours or your partner's, can hold up your payments. Is one of you earning nothing? That return still needs filing. See [benefits and credits](https://tax-services.ca/guides/benefits-and-credits) for more.

## What should I keep close in the first year?

Put the [document checklist](https://tax-services.ca/checklists/documents-for-your-tax-return) where you will see it, mark the [tax calendar](https://tax-services.ca/tax-calendar) for slip season in February and for filing day, and skim the [filing guide](https://tax-services.ca/guides/file-your-taxes) before you start. Rules differ by province in places, and the [province index](https://tax-services.ca/provinces) is the quickest way to find yours.

We share general information here, not advice for your own return, and we don't prepare returns or act for the CRA. Your own slips, province and family can change the answer. Where this page and a CRA letter disagree, go with the letter, and ask the CRA or a qualified preparer if you're stuck.

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Source: https://tax-services.ca/life-events/having-a-baby
Last updated: 2026-10-09
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer