In 2025, Canadian families will experience an increase in their Canada Child Benefit (CCB) payments, providing greater financial relief amid rising living costs.
The Canada Revenue Agency (CRA) has announced a 2.7% increase to help families keep up with inflation.
Starting in July 2025, families will see higher monthly payments based on their 2024 tax returns, ensuring that parents have more money to meet the expenses related to raising children.
Increased Payment Amounts in 2025
The increase in the Canada Child Benefit is a welcome change, especially for families struggling to manage day-to-day expenses.
For children under the age of six, the maximum annual benefit will rise by $210, while families with children aged 6 to 17 will receive an additional $178 annually.
Here’s a detailed breakdown of the 2025 increases:
| Category | 2024 Maximum Amount | 2025 Maximum Amount | Increase |
|---|---|---|---|
| Children under 6 years | $7,787 | $7,997 | +$210 |
| Children aged 6 to 17 | $6,570 | $6,748 | +$178 |
| Child Disability Benefit | $3,319 | $3,411 | +$92 |
| Phase-out Threshold | $36,502 | $37,487 | – |
How the Canada Child Benefit Works
The CCB operates on a sliding scale based on the Adjusted Family Net Income (AFNI). The amount a family receives is determined by several factors, including:
- Family Income: Lower AFNI results in higher benefits.
- Number of Children: Families with more children receive higher payments.
- Age of Children: Payments differ based on whether children are under six or between 6 and 17.
- Disability Status: Families with children qualifying for the Child Disability Benefit (CDB) receive additional payments.
Increased Income Thresholds for Greater Access
In 2025, the income threshold at which benefits begin to phase out will rise from $36,502 to $37,487.
This adjustment ensures that families nearing the threshold will continue to receive more significant benefits, helping them manage the financial demands of raising children.
Changes to the Child Disability Benefit (CDB)
In addition to the general CCB increase, the Child Disability Benefit (CDB) will also see a 2.7% boost. Families with children who qualify for the Disability Tax Credit (DTC) will benefit from an increased CDB maximum amount, which will rise from $3,319 in 2024 to $3,411 in 2025.
This boost is designed to ease the extra financial burden on families caring for children with disabilities, helping cover the costs of specialized care, therapy, and medical needs.
When Will These Changes Take Effect?
The new benefit amounts will be effective starting July 2025. However, the payment increase will be based on families’ 2024 tax returns.
It is crucial for families to file their taxes on time to ensure they receive the correct benefit amounts. Delayed tax filings may result in delayed or incorrect payments, which could impact families’ ability to fully benefit from the increase.
Why These Changes Are Significant
With inflation affecting basic living expenses, the increased Canada Child Benefit payments are a much-needed support system for Canadian families.
These changes help alleviate the economic pressures faced by parents, enabling them to better provide for their children’s education, healthcare, and general welfare.
By increasing the CCB and Child Disability Benefit, the government demonstrates its commitment to enhancing the quality of life for children and supporting parents as they raise their families.
By staying informed about the changes to the Canada Child Benefit in 2025, families can take full advantage of the increased payments and use the extra funds to meet the needs of their children.
FAQs
What is the Canada Child Benefit?
The Canada Child Benefit (CCB) is a tax-free monthly payment designed to help Canadian families with the cost of raising children. Payments are based on family income, the number of children, and the children’s ages.
How does the increased payment in 2025 help families?
The increase in CCB payments for 2025 provides additional financial relief to families, especially those facing higher living costs due to inflation. The extra money will help cover essential child-related expenses like food, healthcare, and education.
How can families ensure they get the increased benefits?
Families need to file their 2024 tax returns on time to ensure they receive the correct CCB amounts. Delays in filing taxes may lead to incorrect or delayed payments.