The Canada Disability Benefit (CDB) is a new federal initiative aimed at providing financial support to low-income, working-age Canadians with disabilities.
Starting from July 2025, eligible individuals can receive up to $200 per month, totaling $2,400 annually. This benefit is designed to alleviate financial hardships and promote inclusion for persons with disabilities.
Key Details of the Canada Disability Benefit
| Feature | Details |
|---|---|
| Benefit Name | Canada Disability Benefit (CDB) |
| Administered By | Government of Canada |
| Implementation Date | Regulations effective May 15, 2025 |
| First Eligibility Month | June 2025 |
| First Payment Month | July 2025 |
| Payment Frequency | Monthly |
| Maximum Monthly Payment | $200 |
| Maximum Annual Payment | $2,400 |
| Payment Period | July 1, 2025 – June 30, 2026 |
| Payment Method | Direct deposit or mailed cheque |
| Retroactive Payments | Up to 24 months, not before June 2025 |
| Official Website | Canada.ca |
Eligibility Criteria
To qualify for the Canada Disability Benefit, applicants must meet the following conditions:
- Age: Between 18 and 64 years old.
- Residency: Resident of Canada for tax purposes.
- Disability Status: Approved for the Disability Tax Credit (DTC).
- Tax Filing: Filed an income tax return for the previous year (e.g., 2024 for the 2025–2026 payment period).
- Legal Status: One of the following:
- Canadian citizen
- Permanent resident
- Protected person
- Temporary resident who has lived in Canada for the past 18 months
- Registered or entitled to be registered under the Indian Act
- Spousal Requirement: If married or in a common-law relationship, the spouse or partner must also file a tax return for the previous year, unless specific exemptions apply.
Income Thresholds and Benefit Reduction
The Canada Disability Benefit is income-tested, meaning the benefit amount decreases as income increases.
- Income Thresholds:
- Single Individuals: Full benefit if adjusted income is $23,000 or less.
- Married/Common-law Couples: Full benefit if combined adjusted income is $32,500 or less.
- Benefit Reduction:
- Single Individuals: Benefit reduced by 20 cents for every dollar above $23,000.
- Couples: Benefit reduced by 20 cents for every dollar above $32,500.
- Working Income Exemption:
- Single Individuals: Up to $10,000 of employment or self-employment income is exempted.
- Couples: Up to $14,000 of combined employment or self-employment income is exempted.
Application Process
While the official application process is not yet open, eligible individuals can prepare by:
- Confirming DTC Eligibility: Ensure you are approved for the Disability Tax Credit.
- Filing 2024 Tax Return: Both you and your spouse/common-law partner (if applicable) should file your 2024 income tax returns.
- Monitoring Official Updates: Stay informed through the official Canada Disability Benefit page for application details.
Payment Dates
The Canada Disability Benefit payments are expected to commence in July 2025, covering eligibility from June 2025.
Subsequent payments will be made monthly. Specific payment dates will align with other federal benefit schedules and will be communicated through official channels.
Additional Support Programs
Eligible individuals may also qualify for other disability-related benefits:
- Disability Tax Credit (DTC): Provides tax relief for individuals with disabilities.
- Canada Pension Plan Disability (CPP-D): Offers monthly payments to contributors who are unable to work due to disability.
- Registered Disability Savings Plan (RDSP): A savings plan to help individuals with disabilities save for the long term.
- Provincial/Territorial Programs: Additional benefits may be available depending on your province or territory of residence.
The Canada Disability Benefit represents a significant step toward supporting low-income Canadians with disabilities.
By providing up to $2,400 annually, the program aims to reduce poverty and enhance financial security.
Eligible individuals should prepare by confirming their DTC status and ensuring their 2024 tax returns are filed. Stay updated through official government channels for application details and payment schedules.
FAQs
When will the Canada Disability Benefit payments start?
Payments are expected to begin in July 2025, covering eligibility from June 2025.
How do I apply for the Disability Tax Credit (DTC)?
You can apply for the DTC by completing Form T2201 and submitting it to the Canada Revenue Agency (CRA). A medical practitioner must certify the form.
Can I receive both the Canada Disability Benefit and CPP Disability benefits?
Yes, if you meet the eligibility criteria for both programs, you may receive both benefits.