Ontario $1,000 Credit for Kids’ Activities

Summary#

This bill creates a new tax credit in Ontario to help families pay for children’s extra‑curricular activities. It lets eligible residents reduce the Ontario income tax they owe by up to $1,000 each year.

• Creates a children’s activity tax credit of up to $1,000 for Ontario residents.
• The credit is non-refundable (it lowers your tax bill but does not give you money back if you owe no tax).
• Applies to tax years ending after December 31, 2024 (first claim would be for the 2025 tax year).
• The provincial government will set the detailed rules, including what activities qualify and what receipts you need.
• The bill does not specify if the $1,000 limit is per child or per tax filer.

What it means for you#

• Parents and guardians in Ontario

  • You could reduce your Ontario income tax by up to $1,000 for eligible children’s activities.
  • You will likely need to keep receipts and details from activity providers.
  • Which activities count (for example, sports, arts, camps) will be set later by government rules.
  • If you owe little or no Ontario income tax, a non-refundable credit may give you little or no benefit.

• People without children

  • No direct benefit. Your taxes do not change unless you claim the credit for a dependent child you support.

• Activity providers (sports clubs, arts schools, camps)

  • Families may ask you for official receipts that meet government rules.
  • You may see more interest from families once the credit takes effect.

• When this starts

  • The credit applies to tax years after 2024. Most people would first claim it when filing their 2025 taxes.

Expenses#

No publicly available information.

Proponents' View#

• Lowers the cost of children’s activities, making it easier for families to enroll their kids.
• Encourages healthy, social, and educational benefits from sports and other programs.
• Simple to claim at tax time with receipts, rather than applying to a separate program.
• Gives parents flexibility to choose the activities that fit their child.
• Can support a wide range of community programs by boosting participation.

Opponents' View#

• Because it is non-refundable, families with very low incomes may get little or no help.
• May mostly subsidize families who already pay for activities, with limited impact on new participation.
• Key details are missing until regulations are set, which could cause confusion about what qualifies.
• Reduces provincial revenue; some argue that money could be better used for direct fee subsidies or free programs.
• Could add paperwork for families and providers to track and provide receipts.