The Canada Child Benefit Changes 2025 are set to provide more financial relief for families across Canada. With the rising cost of living, the government has increased the benefit amounts to help parents cover essential child-related expenses. These adjustments also include changes in income thresholds and additional support for families with children who have disabilities.
This article covers the updated payment rates, eligibility requirements, and key dates for families looking to maximize their benefits. Understanding these changes can help ensure you receive the correct payments when they take effect in July 2025.
Overview Table
| Aspect | Details |
| Maximum Benefit for Children Under 6 | $7,997 annually ($648.91 monthly) |
| Maximum Benefit for Children Aged 6-17 | $6,748 annually ($562.33 monthly) |
| Child Disability Benefit (CDB) | $3,411 annually ($284.25 monthly) |
| Income Threshold for Maximum Benefit | $37,487 (previously $36,502) |
| Payment Start Date | July 2025 |
| Application Requirement | File 2024 tax return on time |
| Payment Method | Tax-free monthly payments through direct deposit |
Increase in Canada Child Benefit Payments
The Canada Child Benefit (CCB) will increase in 2025 to help families manage rising costs. Starting in July, the maximum annual payment for children under six will rise from $7,787 to $7,997, while payments for children aged six to 17 will increase from $6,570 to $6,748. These payments are issued monthly and are tax-free, ensuring families can use the full amount for expenses like food, childcare, and education.
This annual adjustment is linked to the Consumer Price Index (CPI) to ensure payments keep pace with inflation. The increase aims to provide more financial stability, especially for families with young children.
Higher Income Thresholds for More Families
To make the benefit accessible to more families, the income threshold for receiving the maximum amount has been raised. In 2025, families with an Adjusted Family Net Income (AFNI) of up to $37,487 will qualify for the full benefit, compared to the previous threshold of $36,502.
Families earning above this limit will see their benefits gradually reduced based on their income. However, the higher threshold means more families will receive either the full benefit or a larger portion of it compared to previous years.
How Canada Child Benefit Payments Are Calculated
The CCB is calculated based on several factors, including family income, the number of children, and their ages. Payments are higher for families with lower income levels and those with younger children.
Key factors that determine the payment amount include:
- Family income from the previous year’s tax return
- The number of eligible children in the household
- Age of the children (higher payments for children under six)
- Eligibility for the Child Disability Benefit (CDB), which provides additional financial support
Payments are recalculated annually based on tax returns, so filing taxes on time is essential to ensure you receive the correct amount. Delays in tax filing can result in delayed or reduced payments.
Increase in the Child Disability Benefit (CDB)
Families with children who qualify for the Disability Tax Credit (DTC) will also receive more support in 2025. The maximum annual amount for the Child Disability Benefit (CDB) will increase from $3,319 to $3,411, providing an additional $92 per year. This benefit is paid monthly as part of the CCB and is intended to help cover the additional costs associated with caring for children with disabilities.
To qualify for the CDB, a child must be eligible for the Disability Tax Credit. This requires certification from a medical professional confirming the child’s disability and its impact on daily life. Families should ensure their child’s DTC status is current to avoid disruptions in CDB payments.
Payment Schedule and Start Date
The increased CCB and CDB amounts will take effect in July 2025. Payments are issued monthly and are calculated based on the family’s 2024 tax return. Filing taxes on time ensures you receive the correct payments without delays.
Payments are typically deposited directly into the recipient’s bank account. Families should ensure their banking information is up to date with the Canada Revenue Agency (CRA) to avoid any disruptions.
Key payment dates for the Canada Child Benefit in 2025 include:
- February 20, March 20, April 17, May 20, June 20, July 18, August 20, September 19, October 20, November 20, December 12
Steps to Apply for the Canada Child Benefit
Families who are not currently receiving the CCB can apply through the CRA’s online portal or by submitting a paper application. Only one parent, typically the one responsible for the child’s care, can receive the benefit. In shared custody situations, both parents may be eligible to receive 50 percent of the benefit amount.
Follow these steps to apply:
- Log in to your CRA My Account.
- Select the option to apply for child benefits and complete the online form.
- Upload proof of birth for the child if applying for the first time.
- Ensure your tax return is filed and up to date.
- Submit the application and wait for confirmation.
Parents can also apply by mail using Form RC66, Canada Child Benefits Application. Providing accurate information and supporting documents helps prevent delays in processing.
Shared Custody Arrangements
In shared custody cases, both parents may receive 50 percent of the CCB, with each parent’s portion calculated based on their individual income. Parents should notify the CRA promptly if there are changes in custody arrangements, as this can impact their benefit amounts.
If the child lives primarily with one parent, that parent is considered the primary caregiver and is eligible to receive the full benefit amount. The application should include any required documents to verify custody arrangements.
Other Provincial Benefits Available
In addition to the Canada Child Benefit, some families may qualify for additional provincial benefits. For example, the Alberta Child and Family Benefit (ACFB) provides quarterly payments to low- and middle-income families with children under 18. Payments are issued in February, May, August, and November.
Families with children eligible for the Disability Tax Credit may also receive additional provincial support. Eligibility and payment amounts vary by province, so parents should check with their local government for specific details.
Frequently Asked Questions (FAQs)
How much will I receive under the Canada Child Benefit in 2025?
The maximum annual amount is $7,997 for children under six and $6,748 for children aged six to 17. Payments are tax-free and issued monthly.
When will the new benefit amounts take effect?
The updated payment rates will begin in July 2025, based on the family’s 2024 tax return.
How is the Child Disability Benefit calculated?
The CDB provides up to $3,411 annually for children who qualify for the Disability Tax Credit. Payments are issued monthly as part of the CCB.
What happens if I file my taxes late?
Filing taxes late may result in delayed or reduced CCB payments. It is important to file your 2024 tax return on time to receive the correct amounts.
Can both parents receive the Canada Child Benefit in shared custody situations?
Yes, in shared custody arrangements, each parent may receive 50 percent of the benefit amount, calculated based on their individual income.
Conclusion
The Canada Child Benefit Changes 2025 aim to provide increased financial support to families raising children. With higher maximum payments and expanded income thresholds, more families will receive meaningful assistance to cover essential expenses. The increase in the Child Disability Benefit also ensures additional help for families caring for children with disabilities.
To receive the correct payments starting in July 2025, families should file their 2024 tax return on time and ensure their information is up to date with the CRA. By staying informed about these changes, parents can maximize their benefits and better manage the costs of raising children.
