In a significant development for Canadian families, the Canada Child Benefit (CCB) is set to increase in mid-2025, starting July 2025, for the 2025-2026 benefit year.
This adjustment, projected at a 2.7% rise based on inflation, will see maximum monthly payments of up to $666 per child under 6 and $562 for those aged 6 to 17, providing much-needed financial relief amid rising living costs.
Details of the Mid-2025 Payment Increase
Starting July 2025, the CCB will see an inflation-adjusted increase of approximately 2.7%, reflecting the Consumer Price Index (CPI) trends from 2024.
This adjustment aligns with the CRA’s annual practice of indexing benefits to maintain their purchasing power. The new maximum annual payments for the 2025-2026 benefit year will be:
- Children under 6: $7,997 annually ($666.42 monthly).
- Children aged 6 to 17: $6,748 annually ($562.33 monthly).
This increase, based on 2024 tax returns, will roll out automatically for eligible families, ensuring higher payments from mid-2025 onward. The adjustment responds to economic pressures like inflation, offering families more support for essentials.
Eligibility Criteria for the CCB
To qualify for the CCB, the following requirements must be met:
- Residency: Be a Canadian resident for tax purposes, including citizens, permanent residents, protected persons (e.g., refugees), and certain temporary residents.
- Care Responsibility: Live with the child and be primarily responsible for their care and upbringing.
- Child’s Age: The child must be under 18 years old.
Eligibility for Temporary Residents and New Immigrants
- Temporary Residents: Eligible if they have lived in Canada for at least 18 consecutive months and hold a valid permit in the 19th month (e.g., work or study permit), excluding permits marked “does not confer status.” This ensures temporary residents with established ties can access support.
- New Immigrants: Permanent residents qualify immediately upon arrival, while other immigrants (e.g., refugees) may need to establish residency status. Retroactive payments are available for up to 10 years if eligibility was missed.
Eligibility hinges on filing annual tax returns, as the CRA uses the adjusted family net income (AFNI) to determine payments.
Calculation of CCB Payments
The CCB payment varies by income and the child’s age. For the period from July 2025 to June 2026, the calculations are as follows:
- Maximum Benefit:
- Under 6: $7,997 annually ($666.42 monthly).
- 6 to 17: $6,748 annually ($562.33 monthly).
- Income Threshold: Families with an AFNI of $36,502 or less receive the full amount. Above this, benefits decrease gradually.
The CRA calculates the CCB using:
- Base Amount: The maximum benefit per child, adjusted by age.
- Income Reduction: For AFNI over $37,487 (up from previous $36,502), the benefit reduces at varying rates:
- For incomes between $37,487 and $81,222, a first reduction rate applies, such as 13.5% for certain family sizes.
- For incomes above $81,222, a second reduction rate, like an additional 5.7%, further adjusts the benefit.
Families can use the CRA’s online calculator for a personalized estimate.
Application Process for the CCB
Applying is straightforward and can be done in several ways:
- Online: Via CRA My Account. Register, verify identity, and submit details.
- Mail: Complete Form RC66 (Canada Child Benefit Application) and, if needed, Form RC66SCH (Status in Canada/Income Information). Mail to the local tax centre with residency proof for late applications (over 11 months).
- Newborns: Apply through provincial birth registration (e.g., online in Ontario or BC), often at the hospital. Processing takes about 8 weeks.
For fastest processing, use CRA My Account, especially for newborns via birth registration.
Late applicants must provide proof like a birth certificate or immigration documents. Once approved, payments begin the next month and may include retroactive amounts.
CCB Payment Dates for 2025
Payments are typically issued on the 20th of each month, adjusted for weekends or holidays.
Here’s the 2025 schedule:
- January 20, 2025
- February 20, 2025
- March 20, 2025
- April 17, 2025
- May 20, 2025
- June 20, 2025
- July 18, 2025
- August 20, 2025
- September 19, 2025
- October 20, 2025
- November 20, 2025
- December 12, 2025
Changes in CCB payment dates only occur if the 20th falls on a weekend or statutory holiday, as per CRA guidelines.
New CCB Policy Changes Effective January 2025
A major update in CCB policy takes effect in January 2025, addressing financial hardships faced by families experiencing loss.
- CCB and CDB payments will continue for six months after a child’s passing, offering financial support to cover funeral costs and other essential expenses.
- This extension is part of the government’s compassionate approach to assist grieving families during difficult times.
Additionally, some provinces offer extra child benefit supplements, such as the BC Family Benefit, which combines provincial and federal aid to increase financial support for low- and middle-income families.
CCB Payment Increase 2025 – Key Figures Table
| Category | Payment Amount 2024-2025 | New Payment Amount 2025-2026 |
|---|---|---|
| Children under 6 | $7,437 annually ($619.75 monthly) | $7,997 annually ($666.42 monthly) |
| Children aged 6 to 17 | $6,275 annually ($522.92 monthly) | $6,748 annually ($562.33 monthly) |
| CDB (Disability Benefit) | $3,322 annually ($276.83 monthly) | $3,411 annually ($284.25 monthly) |
| Income threshold (full benefit) | $36,502 | $37,487 |
FAQs
What is the new Canada Child Benefit (CCB) increase for 2025?
The Canada Child Benefit (CCB) will increase by 2.7% starting July 2025, raising payments to $666.42 per month for children under 6 and $562.33 per month for children aged 6-17.
How is the CCB payment calculated?
The CCB is based on family net income (AFNI) and the child’s age. Families earning $37,487 or less will receive the full benefit, while those earning above this will see a gradual reduction.
When will the increased payments begin?
The new CCB payments take effect in July 2025, applying to the 2025-2026 benefit year, based on 2024 tax returns.