Budget 2025: What It Means for Moms
Alberta Budget 2025 brings tax relief, child benefit increases, child care support, and women's shelter funding that directly affect moms across the province.
Personal income tax savings
Up to $750/person
New 8% bracket
Alberta Child and Family Benefit
$375M
+$29M (8.4%)
Child care flat fee
$326.25/month
Maintained
Women's shelters
+$19M over 3 years
New funding
The Bottom Line
Budget 2025 puts more money in your pocket through a new tax bracket that can save you up to $750 this year, increases the Alberta Child and Family Benefit by 8.4%, and keeps child care fees at roughly $15 a day. It also adds $19 million for women's shelters. The tradeoff: the province is running a $5.2 billion deficit, and the federal child care agreement expires in 2025-26, leaving future funding uncertain.
Top Measures That Affect You
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New 8% income tax bracket on the first $60,000 of income, effective January 1, 2025. If you earn under $60,000, your personal income taxes drop by about 20%. Most workers will see the benefit on their paycheques after July 1, 2025, when payroll withholdings are adjusted.
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Alberta Child and Family Benefit rises to $375 million in 2025-26, an increase of $29 million (8.4%) from last year. The phase-out income thresholds are also being increased, meaning more families qualify. This non-taxable benefit supports child well-being and addresses child poverty.
Child care fees held at $326.25 per month (roughly $15 a day) for children up to kindergarten age in full-time licensed daycare and family day home programs. The child care program is budgeted at $1,966 million in 2025-26.
Women's shelters receive an additional $19 million over three years to support increasing demand and costs, on top of the $10 million previously provided through the Safe Streets Action Plan.
$1.6 billion budgeted for specialized learning needs in 2025-26, including support for students with complex needs through Specialized Learning Supports, English as an Additional Language, and other programs.
$55 million for classroom complexity in 2025-26, including training and hiring more educational assistants and specialists to support your children's learning environment.
Newborn Screening Program expansion: $21 million in new funding to consolidate and expand the Genetics and Genomics Laboratory, which screens all babies born in Alberta for 26 treatable conditions.
Direct Financial Impact
Here is what the numbers could mean for your household:
Income tax savings: If you are a single mom earning $60,000 or more, you save up to $750 in 2025. If you and a partner both earn above $60,000, your household saves up to $1,500 combined. Earners below $60,000 see their provincial income taxes fall by roughly 20%.
Child care: At $326.25 per month per child in licensed daycare, you continue to pay roughly $15 a day. That is roughly $3,915 per year per child, compared to what market rates would be without the subsidy.
Alberta Child and Family Benefit: This is a non-taxable quarterly payment. The exact amount depends on your family income and number of children. The 2% escalator and higher phase-out thresholds mean slightly larger cheques for eligible families.
Net household impact: A two-income household with one child in daycare could see combined annual benefits of $1,500 or more in tax savings, plus the continued child care subsidy and any Child and Family Benefit payments you already receive.
Service Changes
Health care restructuring: Four new provincial health agencies are being established. The one most relevant to you is Primary Care Alberta, now operational with a $322 million budget, which aims to improve access to family physicians, nurse practitioners, and after-hours care. If you have struggled to find a family doctor, this is designed to help.
Assisted Living Alberta launches April 1, 2025, with a $3.8 billion operating budget. If you are caring for aging parents while raising children, this new agency consolidates continuing care services from assisted living to home care under one umbrella.
Child Intervention funding increases by $58 million to $957 million in 2025-26, addressing rising case complexity as more children and youth experience mental health and behavioral difficulties.
Early Intervention Services funding increases by $6 million in 2025-26, supporting youth transitioning to adulthood with social, emotional, and financial assistance, including tuition and living expenses.
Mental health classrooms are expanding from 20 to 60 locations for clinical support to students with complex mental health needs.
School construction: The School Construction Accelerator Program aims to deliver roughly 150,000 new and modernized student spaces. Combined with projects already underway, this brings the total to over 200,000 spaces over the next seven years, with nearly 90,000 available within the next four years.
What's Missing
No new affordability payments: Unlike some previous budgets, there are no direct affordability rebates or electricity bill credits announced for 2025-26.
Child care beyond 2025-26 is uncertain: The Canada-Alberta Early Learning and Child Care Agreement expires after 2025-26. The budget shows child care funding dropping by $492 million by 2027-28, reflecting only committed provincial investment while a new federal deal is negotiated. If negotiations fail or are delayed, parents could face significantly higher costs.
No expansion of parental leave top-ups: The budget does not include any provincial top-up to federal maternity or parental leave benefits.
No new housing measures specifically for families: While there is $767 million over three years for housing through the Alberta Social Housing Corporation, there are no targeted programs for families struggling with rent or home prices beyond existing rental assistance.
Inflation still biting: The budget projects CPI inflation at 2.6% in 2025, with shelter costs noted as a key driver. No specific measures directly target shelter cost relief for families.
Key Dates
| Date | What Happens |
|---|---|
| January 1, 2025 | New 8% tax bracket takes effect |
| February 2025 | Primary Care Alberta becomes operational |
| After July 1, 2025 | Most workers see tax cut on paycheques when payroll withholdings adjust |
| April 1, 2025 | Assisted Living Alberta launches; new fiscal year begins |
| Spring 2025 | Compassionate Intervention Act to be introduced |
| 2025-26 | Final year of current Canada-Alberta Child Care Agreement |
| 2026 | Alberta Disability Assistance Program set to launch |
Where to Get Help
Alberta Child and Family Benefit: Administered through the Canada Revenue Agency. File your tax return to be assessed automatically. Visit alberta.ca/alberta-child-and-family-benefit for details.
Child care subsidy: Contact your licensed daycare provider about the flat $326.25 monthly fee. For help finding licensed child care, visit alberta.ca/child-care.
Women's shelters: If you or someone you know needs help, call the Alberta-wide Family Violence Info Line at 310-1818 (no area code needed). Available 24/7 in over 170 languages.
Income tax questions: Contact Alberta Treasury Board and Finance at 780-427-5364 or toll-free within Alberta at 310-0000 then 780-427-5364.
Family Justice Strategy: If you are going through separation or divorce, the expanded Family Justice Strategy is now available in Edmonton, Calgary, Grande Prairie, and five base court locations surrounding Edmonton. Contact your local courthouse for details.