The Canada Child Benefit (CCB) is a tax-free monthly payment that helps families with the cost of raising kids under the age of 18. Here’s what’s new for 2025 and how to make the most of your benefits.
As of July 2024, the federal government adjusted the Canada Child Benefit to account for inflation. The new maximum annual benefit amounts are:
- $7,787 per child under age 6 (approximately $649/month)
- $6,570 per child aged 6 to 17 (approximately $548/month)
This reflects a 4.7% increase from the previous year, providing families with as much as $350 more per child annually. These payments are non-taxable, which means they do not need to be reported as income on your tax return.
Income Thresholds and Reductions for Canada Child Benefit
The benefit starts to phase out once your adjusted family net income exceeds $79,087:
- 2% reduction for one child
- 7% reduction for two or more children
Child Disability Benefit (CDB)
Families caring for a child with a disability may receive up to $276.83/month. Like the CCB, the CDB is reduced as household income increases beyond $79,087.
Maximizing Your Benefit
To increase your CCB and CDB amounts, aim to reduce your household net income (line 23600 on your tax return). Strategies include:
- Contributing to RRSPs
- Claiming deductible expenses (e.g., childcare, union dues, moving expenses)
- Filing your taxes annually, even if you have little or no income
How to Apply for the Canada Child Benefit
New applicants can complete the Canada Child Benefit Application (RC66). If you’ve received the CCB before, simply ensure both you and your spouse/common-law partner file your annual tax returns to continue payments.
To estimate your benefit, use the Child and Family Benefits Calculator.
Accounting & Advisory Support for You
Using available government benefits is just one piece of your financial puzzle. At KWB, we help business owners simplify accounting, boost profits, and reach goals. With the right advice, you can make smarter decisions for your business and your family. Learn more and book an Introduction meeting with us today.