Child care subsidy

Under the new federal-provincial child care agreement, all parents of children 0 to kindergarten-age (in kindergarten and also attending child care during regular school hours) will pay less for child care through:

• expanded subsidy eligibility with new rates and income thresholds, and/or
• affordability grants provided directly to child care operators to reduce fees

Eligible families with a combined gross income under $180,000 a year can receive subsidy to further reduce child care fees based on the income thresholds below. The combined benefits of affordability grants and subsidies should be considered when estimating your new costs.

If you already receive child care subsidy, you do not need to reapply. If you are not currently receiving subsidy and meet the eligibility criteria, apply now.

Kindergarten children who attended child care during regular school hours during the school year will continue to receive the same subsidy rate during the summer months unless a change is reported. The affordability grant fee reduction will also still be applied during the summer months.

Maximum subsidy rates for children 0 to kindergarten age (in kindergarten and also attending child care during regular school hours)

A school age child's subsidy rate will continue to be determined by total family income, the child’s age, the child care program, and the number of hours the child attends in a month.

Families earning under $90,000 gross annually with children in kindergarten to Grade 6 enrolled in a licensed program outside of regular school hours are eligible for child care subsidy.

Review the eligibility requirements for more information on how to qualify for subsidy and how to calculate your total family income. Additionally, find out if you are an individual who is temporarily not required to file a Canadian tax return to qualify, and what to do in the event of a recent reduction in income.

The table below shows the subsidy amounts based on income, child's age, and program type. Children must attend the minimum number of hours to receive the maximum subsidy rate listed under the families’ income bracket.

Kindergarten children who attended child care outside of regular school hours during the school year will continue to receive the same subsidy rate unless a change is reported.

Maximum subsidy rates for children in kindergarten to Grade 6 only enrolled in a licensed child care program outside of regular school hours

If your child is in kindergarten and also attending care child during regular school hours, you may qualify for a fee reduction under the new federal-provincial child care agreement. See the subsidy rates for children 0 to kindergarten age (child care during school hours) above.

Families with an annual income of less than $180,000 with children enrolled in a licensed preschool program can apply for a subsidy of $125 per month.

Families can only receive one subsidy type. Families who have children enrolled in any other licensed program will receive the subsidy type with the highest subsidy rate.

Families must meet the child care subsidy eligibility requirements to qualify.

The extended hours subsidy assists families who require child care outside of the regular hours of 6 am to 6 pm or on weekends to receive, in addition to the child care subsidy, an extra $100 per month per child.

• The licensed program must be approved to offer extended hours of care.
• The child must require 4 or more hours of extended hours of care in a month for the family to receive the additional $100.
• The child is not using overnight accommodation and receiving an overnight affordability grant. These families will instead see reduced savings through increased affordability grants, regardless of family income.

To assist parents with the cost of full-day child care for school-age children in the summer months, subsidy rates will increase for July and August 2023.

If you are currently receiving subsidy and will be increasing your out-of-school child care hours throughout the summer months, you will be eligible for a subsidy increase.

The summer school-age subsidy rate change will occur automatically and will return to the regular rate in September 2023.

The subsidy rate table below shows the summer rates you can expect based on the type of program your child attends and your income.

Subsidy rates based on income

For example, in June 2023, a child in Grade 2 attending an out-of-school care program received a maximum school-age subsidy rate of $366. The subsidy rate for this child will increase to $644 for July and August 2023 to support increased attendance. The subsidy rate will return to $366 in September.

If you have any questions or require additional information about the school-age subsidy summer rates for 2023, contact the Alberta Supports Contact Centre at 1-877-644-9992.

You can apply for child care subsidy if:

• you or your spouse/partner, or the child receiving care, are Canadian citizens or permanent residents of Canada, temporary residents with a work permit, refugee claimants or protected person claimants (individuals unable to return to their countries of origin because they fear persecution)
• you or your spouse or partner are an Alberta resident
• you and your spouse or partner:
  • are working, or looking for work
  • are attending school
  • have special needs, or your child has a special need
• your children are 12 years old or younger and are not yet attending Grade 7
• your children have a secured spot in a licensed facility-based program with preschool, daycare or out-of-school care programming, or a family day home program that is overseen by a licensed agency

The amount of subsidy you receive and which program you qualify for will depend on the age of your child, type of child care program and your household income. You are eligible if:

• Your total family income is less than $180,000 per year for children 0 to kindergarten age (for those children who are in kindergarten and also attending child care during regular school hours).
  • You will also benefit from reduced fees through an affordability grant provided directly to child care operators. The combined benefits of affordability grants and subsidies should be considered when estimating your new costs. Learn more about the new federal-provincial child care agreement.
• Your total family income is less than $90,000 per year for children in kindergarten to Grade 6 enrolled in a licensed program outside of regular school hours.

Income eligibility is determined by the combined amount of your and your spouse or partner's income from your most recent Notice of Assessment, issued by CRA:

• Income is based on Line 15000 (gross income) of your tax return less amounts reported on Line 32000 (education related tax deductions), and Lines 33099 and 33199 (medical related tax deductions).
• In the event of a recent loss of income, or if you and your spouse or partner were not required to file a Canadian tax return, you can contact us to request an evaluation of income and education estimates.

Steps to complete

1. Read the eligibility requirements and make sure you understand what happens after you apply.
2. Complete the Canada Revenue Agency (CRA) Consent Applicant Declaration and Acknowledgement form, if you haven't completed it in the past.
3. Complete the Child Care Subsidy application online using your Alberta.ca Account.
4. Provide additional information or documents as requested during the assessment process.

Information about the Alberta.ca Account

During the application process, you will be required to log in or create an Alberta.ca Account.

An Alberta.ca Account is your single, verified online identity for interacting with Government of Alberta online programs and services. It is free to create and gives you secure access to apply for child care subsidy.

An Alberta.ca Account allows you to start an application for child care subsidy, stop, and then come back to it later. If you are in the middle of an application or need to submit documents, simply log back in to continue and upload your documents.

We encourage all applicants to apply online as a paper application can take much longer to process. However, child care subsidy applicants can still apply using the paper form.

To apply using the paper form, download and fill out the Application for Child Care Subsidy form.

If you or your child's reason for care is a special need, you must submit a completed Verification for Need for Child Care – Special Needs.

If you need help using the Child Care Subsidy online application or if you have questions related to your subsidy or application status, call the Alberta Supports Contact Centre at 1-877-644-9992.

This service is available in more than 100 languages.

You can also email the Child Care Subsidy Program at [email protected].

If you experience technical issues or have any feedback on the application, email [email protected].

If approved for a subsidy, you will receive a letter indicating the subsidy start and end date and the amount your child care program will receive on your behalf.

Approvals may take a few weeks. As long as you submit your application in the month you want subsidy to start, your savings will be retroactive to that month, no matter when you actually receive your approval letter.

If you did not submit all of your supporting documentation when you applied, you will be given a 2-month conditional approval period to submit them.

Once all necessary documents are received and approved, the subsidy may be granted for a maximum period of 12 months.

You will be responsible for returning any funds paid if all documentation is not submitted within the time period specified.

If your application is not approved, you will receive a letter stating the reasons why the subsidy application was not approved. You can request a review of a subsidy decision by submitting the Administrative Review Request form within 30 days from the date of the decision.

In order to continue to receive your subsidy, you must renew it before it expires. We will send you a notice, or you can contact the Alberta Supports Contact Centre to find out when your subsidy ends.

You can renew your subsidy as early as the first day of the month in which your subsidy ends. For example, if your subsidy expires August 31, you can renew your subsidy as early as August 1.

You must report a change of information in the same month the change occurs. Changes to your information can result in an increase or decrease in subsidy benefits, or you may have to pay some of the subsidy back.

You can report changes online or download and complete a Change of Information form and submit it with your supporting documentation.

Changes you must report in the month they occur:

• you or the co-applicant do not require child care, for example:
  • not working (you may be eligible to receive up to 4 months of subsidy to allow you to look for work)
  • not attending school
• a decrease in annual income that may impact your subsidy benefits
• change in child care arrangements
  • adding a child to a child care program
  • removing a child from a child care program
  • moving your child to a different child care program
• change in marital status
• change of address or telephone number
• change of an applicant, co-applicant or dependent name