# 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

A new baby changes your budget first and your taxes second, but the second change can put real money back in your pocket if you set it up early.

## What should you do first?

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).

## How is leave pay treated?

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.

## What else can lower your tax?

Childcare costs are often deductible, and the credits you can claim change once you have a child. Keep the receipts from the daycare or caregiver and check who has the lower income, since that's usually who claims. Take a look at the [tax credits calculator](https://tax-services.ca/calculators/income-tax/tax-credits) for 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.

## Before you act on this page

You're reading a general overview, and it can't see your slips, your province or your family, so you shouldn't treat it as advice for your own return. If anything here doesn't match a letter from the CRA, the letter wins.

Stuck?

Ask a qualified preparer or the CRA itself, and keep the [document checklist](https://tax-services.ca/checklists/documents-for-your-tax-return), the [tax calendar](https://tax-services.ca/tax-calendar) and the [filing guide](https://tax-services.ca/guides/file-your-taxes) close by. Not sure which province's rules apply to you? The [province index](https://tax-services.ca/provinces) lists them all.

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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