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Starting July 2025, Canadian families will see an increase in their Canada Child Benefit (CCB) payments, providing additional financial support to help with the rising costs of raising children.
This annual adjustment, aligned with inflation, ensures that the benefit keeps pace with the cost of living.
What Is the Canada Child Benefit?
The Canada Child Benefit is a tax-free monthly payment made to eligible families to assist with the cost of raising children under 18 years of age.
Administered by the Canada Revenue Agency (CRA), the CCB is income-tested, meaning the amount received depends on the family’s adjusted net income and the number and age of children.
Updated Payment Amounts Effective July 2025
For the July 2025 to June 2026 benefit year, the maximum annual CCB amounts have been increased to reflect inflation.
| Child’s Age | Previous Annual Max (2024) | New Annual Max (2025) | Monthly Payment |
|---|---|---|---|
| Under 6 years old | $7,787 | $7,997 | $666.42 |
| 6 to 17 years old | $6,570 | $6,748 | $562.33 |
These amounts are applicable to families with an adjusted family net income (AFNI) below approximately $37,000. For families with higher incomes, the benefit is gradually reduced based on specific income thresholds and the number of children.
Eligibility Criteria
To qualify for the CCB:
- You must live with a child under 18 years of age.
- You must be primarily responsible for the care and upbringing of the child.
- You must be a resident of Canada for tax purposes.
- You or your spouse/common-law partner must be a Canadian citizen, a permanent resident, a protected person, or a temporary resident who has lived in Canada for the previous 18 months.
- Both you and your spouse/common-law partner must file tax returns every year, even if there is no income to report.
The CRA automatically assesses your eligibility and calculates your benefit amount based on your income tax return.
Payment Schedule
CCB payments are issued monthly, typically on the 20th of each month. For the 2025-2026 benefit year, the first payment reflecting the new rates will be made on July 20, 2025. Subsequent payments will continue on the 20th of each month.
How the Benefit Is Calculated
The CCB amount is calculated based on:
- The number of eligible children.
- The age of each child.
- The family’s adjusted net income from the previous year.
For families with incomes above certain thresholds, the benefit is reduced by a specific percentage. For example, for a family with two children and an AFNI between $37,000 and $81,000, the benefit is reduced by 13.5% of the income over $37,000. For incomes above $81,000, additional reductions apply.
The Canada Child Benefit increase effective July 2025 provides enhanced financial support to Canadian families, helping to offset the rising costs associated with raising children.
By understanding the updated payment amounts, eligibility criteria, and calculation methods, families can better plan and manage their finances. Ensure your tax returns are filed on time to receive the full benefit you’re entitled to.
FAQs
How do I apply for the Canada Child Benefit?
You can apply for the CCB through the CRA’s My Account, by completing Form RC66, or when registering the birth of your child in your province or territory.
What happens if my income changes during the year?
The CCB is recalculated every July based on your income from the previous year. If your income changes significantly, it will affect your benefit amount in the following July.
Are there additional benefits for children with disabilities?
Yes, families with children eligible for the Disability Tax Credit (DTC) may receive the Child Disability Benefit (CDB), which provides up to $3,322 annually per eligible child.