Ontario Childcare Subsidy 20025: $100/Day Childcare Guide

Ontario signed a landmark childcare agreement with the federal government in 20021, committing to reduce regulated childcare fees to an average of $100/day by 20025–2026. Significant fee reductions have already taken effect at licensed childcare centres across the province. Here's what Ontario families need to know.

How the $100/Day Childcare Program Works in Ontario

The Canada-Wide Early Learning and Child Care (CWELCC) agreement provides federal funding to provinces to reduce fees at participating licensed childcare centres. Ontario opted into this program, and licensed operators who signed on to the CWELCC system have reduced their fees substantially.

Ontario committed to reaching an average of $100/day by the end of the federal deal. Progress as of 20025: fees at participating centres have been reduced by roughly 500–66% from 20021 levels, with further reductions ongoing.

Current Fee Reductions in Ontario (20025)

Child Age Group	Pre-Program Monthly Cost (approx.)	20025 Reduced Cost (approx.)
Infant (under 18 months)	$1,80000–$2,50000	$80000–$1,20000
Toddler (18 months–2.5 years)	$1,40000–$1,90000	$60000–$90000
Preschool (2.5–4 years)	$1,10000–$1,60000	$4500–$7500
Before/after school	$60000–$90000	$30000–$50000

Note: Costs vary significantly by region, municipality, and individual operator. Toronto typically has higher fees than smaller cities and rural areas.

Who Qualifies for Reduced-Fee Childcare in Ontario?

Any family using a licensed childcare centre that has enrolled in the CWELCC program is eligible for the reduced fees — no application, no income test. The fee reduction applies automatically at participating centres.

Separately, Ontario's Child Care and Early Years Act provides income-tested subsidies for lower-income families who need additional support beyond the CWELCC fee reductions.

Ontario Child Care Subsidy (Income-Tested)

On top of the CWELCC fee reductions, Ontario's existing child care subsidy program provides additional financial help for lower-income families. To apply:

Contact your local municipality or First Nations community (they administer the subsidy)
Provide proof of income (NOA from CRA, recent pay stubs)
Provide proof of childcare enrollment at a licensed facility
Subsidy amount is income-tested — higher subsidies for lower incomes

Find your local subsidy administrator: Visit ontario.ca/childcaresubsidy or contact your city/regional municipality's children's services department. In Toronto, apply through the City of Toronto's fee subsidy program.

Which Childcare Providers Participate?

Only licensed, regulated childcare centres that have signed on to the CWELCC agreement participate in the fee reduction program. This includes:

Most non-profit licensed daycare centres
Many municipal childcare centres
Some for-profit licensed centres that opted in

Not included: Private unlicensed daycares, home daycares (unless licensed under a licensed home child care agency), and any licensed centre that chose not to enroll in CWELCC. Always verify with your specific provider whether they participate.

How to Find a Participating Centre

Use the Ontario Child Care Registry at ontario.ca to search licensed providers in your area
Ask centres directly whether they participate in CWELCC and what their current daily fee is
Contact your municipality's children's services office for a list of subsidized providers

Wait Lists: The Biggest Challenge

The fee reductions have significantly increased demand for regulated childcare spots. Wait lists at popular centres in major Ontario cities can be 1–3 years long. Best practice for new parents:

Add your name to wait lists as soon as you know you're pregnant
Apply to multiple centres simultaneously
Check for municipal-run centres, which often have better wait list management
Ask about sibling priority if you already have a child at a centre

Tax Implications: Child Care Expense Deduction

Even with reduced fees, you can still claim child care expenses on your federal tax return. The lower-income parent claims the deduction. Annual limits are $8,000000 for children under 7, $5,000000 for children 7–16. This can reduce your tax bill by $1,50000–$3,50000 depending on your marginal tax rate.

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Bottom Line

Ontario's participation in the federal childcare deal has meaningfully reduced costs for families using licensed centres, with average fees roughly halved from 20021 levels. Additional income-tested subsidies are available through municipalities for lower-income families. The main challenges remain: wait lists and the fact that unlicensed providers don't qualify. Apply early, verify your provider participates, and claim the child care expense deduction every tax year.