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Tax planning for a new baby: benefits, leave and RESP

A new baby changes your household income, your benefits and your tax return, usually in the same few months. Most of the planning is administrative: register the birth, get a social insurance number, apply for the child benefit and choose how to take parental leave. This article lays out the steps in the order most Ontario parents meet them, with the 2026 figures from official sources. It focuses on what to do and what to keep, and it leaves the question of splitting income between partners to a separate article.

Sora Accounting & Tax · General information · Editorial policy
Updated · 6 min read

The first months after a baby arrives

Shows the order of tasks after a birth: registering and getting a SIN, applying for benefits and leave, then setting up an RESP and filing the return.

Visual labels: Register birth, get SIN; Child benefit, EI leave; RESP, file your return.

See the sourced 2026 Ontario tax guide: rates, limits and deadlines →

What to take away

  • Registering the birth with your SIN and consent lets the CRA receive your child benefit application automatically, with payment or a notice expected within 8 weeks.
  • EI maternity and parental benefits are based on your insurable earnings, are reported as income and include a standard or extended choice that cannot be changed once payments start.
  • Keep filing on time every year: your Canada child benefit stops if either spouse or partner does not file.

Register the birth and get a SIN

Start with the birth registration. In Ontario you register through the province, and the CRA’s Automated Benefits Application lets you apply for the Canada child benefit in the same step. You must give your consent and your own social insurance number so the province can securely share the information with the CRA. Without consent you apply later through My Account or on Form RC66, with proof of birth.

Your baby also needs a social insurance number. A parent or legal guardian can apply for a child through Service Canada. You will need the SIN before you open an RESP. The CRA suggests setting up direct deposit before the birth to reduce payment delays, and says payment or a notice should follow within about 8 weeks of a complete application.

The Canada child benefit

The Canada child benefit is a tax-free monthly payment for children under 18. For the July 2026 to June 2027 period, a family with adjusted family net income under $38,237 receives up to $8,157 a year for each child under 6, or about $680 a month. The amount is reduced above that income, and a separate reduction applies above $82,847. For one child the CRA reduces the benefit by 7% of income over $38,237 between those two thresholds.

The payment year runs from July to June and is based on the previous year’s income, so a change in your income this year affects payments from next July. Ontario’s related child benefit is delivered with it and you do not apply separately. The condition is that you and your spouse or partner file your returns on time every year, even with no income. A missed return can stop the payments.

EI maternity and parental benefits

Employment Insurance maternity benefits are available to the person who is away from work because they are pregnant or have recently given birth, and last up to 15 weeks. Parental benefits can follow and can be shared. You generally need 600 insured hours in the 52 weeks before your claim starts, or since your last claim if that period is shorter. Apply as soon as possible: waiting more than 4 weeks after your last day of work may cost you benefits.

You choose between standard and extended parental benefits. Standard pays 55% of your average insurable weekly earnings, up to $729 a week in 2026, and one parent can receive up to 35 weeks, with up to 40 weeks shared between parents. Extended pays 33%, up to $437 a week in 2026, for up to 61 weeks per parent and 69 shared. You cannot switch once a parental benefits payment has been made, so compare the totals with your household budget first.

Leave if you are self-employed or an owner-manager

Self-employed people are not covered automatically. To receive special benefits such as maternity or parental benefits, you must have an agreement with the Canada Employment Insurance Commission that has been active for at least 12 months. If you are planning a family, the registration is a decision to make well before the due date, not after.

If you own a corporation and pay yourself a salary, benefits are calculated from insurable earnings, so your payroll record matters. Whether an owner-manager’s employment is insurable depends on factors such as ownership and family relationships, which this article does not work through. Ask your accountant to check your own situation on the EI pages before you set your pay or plan the leave.

How leave income shows up on your return

EI benefits are reported on a T4E slip, and the CRA directs you to report the total of the maternity and parental amounts on line 11905. That amount is already included in the line 11900 total, so it is not added twice to your income. Because your earnings for the year are often a part-year salary plus benefits, your total income can fall well below a normal year.

A lower-income year can be a good time to look at your RRSP deduction. The CRA lets you deduct unused RRSP contributions from a previous year, so you can contribute now and claim the deduction in a later, higher-income year if that suits you. Check your own deduction room on your notice of assessment, and keep receipts for any contributions you carry forward.

Start an RESP early

Contributions to an RESP are not deductible, but the money grows tax-sheltered, and the student includes education payments in their income when they receive them. The Canada Education Savings Grant adds 20% of your annual contributions, up to $500 a year per child, or $1,000 if you have unused grant room from earlier years, with a lifetime maximum of $7,200. Lower-income families may receive an additional amount.

The Canada Learning Bond may add up to $2,000 for eligible low-income families with children born in 2004 or later, with no personal contributions needed. The lifetime contribution limit is $50,000 per beneficiary and excess contributions are taxed at 1% a month. Open the plan once you have the SIN, and confirm with your provider how much you need to contribute each year to capture the grant.

Child care costs and the parent who claims them

Once you return to work, child care costs may be deductible. In most two-parent households the lower-income partner claims them, which is easy to overlook when one of you has been on leave for part of the year. Our article on the child care expense deduction covers the limits, eligible providers and receipts.

Keep a folder for each child: the birth registration, the SIN confirmation, benefit notices, EI statements, RESP statements and child care receipts. A tidy file turns a stressful filing season into a short one and helps if the CRA asks for support later.

What to bring and when to get help

Bring both partners’ notices of assessment, T4 and T4E slips, EI claim details, RESP statements, child care receipts, your RRSP deduction limit, and any letters from the CRA about child benefits. If you are self-employed, bring your EI agreement date and your income records.

Ask for help if you share custody, if your family situation changes during the year, if you own a corporation and are planning your own pay around leave, or if a benefit payment stops without explanation. Our guide on what to bring for a personal return lists the broader slips to gather.

Sources & editorial notes

Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.

Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.