New Canada Child Benefit Payment Increase Effective July 2025

Last Updated On 28 June 2025, 8:35 AM EDT (Toronto Time)

The Canada Child Benefit (CCB) is set to increase starting in July 2025 for the 2025-2026 benefit year, offering vital financial relief amid rising living costs.

This inflation-adjusted boost, projected at 2.7%, will raise the maximum payments to $7,997 for children under 6 and $6,748 for those aged 6 to 17.

With millions of families relying on the CCB to cover essentials like food, clothing, and childcare, this increase comes as a lifeline during a time of economic uncertainty.

This comprehensive guide covers everything you need to know about the 2025 CCB increase, new relief introduced at the beginning of 2025, eligibility criteria, new income thresholds, and CRA payment dates.

Whether you’re a parent, guardian, or caregiver, this article will help you navigate the updated CCB program and maximize your benefits.

The Canada Child Benefit (CCB) is a cornerstone of Canada’s social support system, designed to reduce child poverty and assist families with the costs of raising children under 18.

Administered by the Canada Revenue Agency (CRA), this tax-free monthly payment was introduced in July 2016, replacing earlier programs like the Universal Child Care Benefit (UCCB) and the Canada Child Tax Benefit (CCTB).

The CCB’s primary goal is to provide financial support tailored to a family’s income level, ensuring that lower- and middle-income households receive the most assistance.

Unlike its predecessors, the CCB is entirely tax-free, meaning families keep every dollar they receive.

In 2024, the program supported approximately 6 million children across Canada, distributing over $24 billion annually, according to government reports.

The CCB is indexed to inflation, ensuring its value keeps pace with rising costs.

The upcoming 2.7% increase for the 2025-2026 benefit year reflects the Consumer Price Index (CPI) trends from 2024, maintaining the benefit’s purchasing power for essentials like groceries, school supplies, and housing.

Full Details of the July 2025 CCB Payment Increase

From July 18, 2025, eligible Canadian families will receive higher CCB payments until June 2026, when they will undergo another revision.

Furthermore,

This CCB increase is based on the CRA’s annual indexing practice, which adjusts benefits to align with the rising cost of living.

Here are the new maximum annual and monthly payments for the 2025-2026 benefit year:

• Children under 6: Up to $7,997 per year (approximately $666.42 per month).
• Children aged 6 to 17: Up to $6,748 per year (approximately $562.33 per month).

These amounts represent an increase from the 2024-2025 benefit year, where maximum payments were $7,787 for children under 6 and $6,570 for those aged 6 to 17.

The adjustment will automatically apply to eligible families based on their 2024 tax returns, with no need to reapply for those already receiving the benefit.

This increase is particularly significant given the economic challenges many families face, including rising grocery prices, housing costs, and childcare expenses.

For a family with two children under 6, the maximum annual CCB payment could rise to $15,994, providing an extra $420 annually compared to the previous year.

The CCB is a means-tested benefit, meaning the amount you receive depends on your adjusted family net income (AFNI), the number of children, and their ages.

Below, we break down the calculation process for the 2025-2026 benefit year, including examples to illustrate how payments are determined.

Key Components of the CCB Calculation

1. Maximum Benefit: The full amount is paid to families with an AFNI below $37,487 (the updated income threshold for 2025). The maximum amounts are:
   • $7,997 per year ($666.42 per month) for each child under 6.
   • $6,748 per year ($562.33 per month) for each child aged 6 to 17.
2. Income Reduction: For families with an AFNI above $37,487, the benefit is reduced based on income levels and the number of children. The reduction occurs in two phases:
   • First threshold ($37,487 to $81,222): A percentage of income above $37,487 reduces the benefit.
   • Second threshold (above $81,222): A higher reduction rate applies to further decrease the benefit.
3. Adjusted Family Net Income (AFNI): This is calculated as:
   • Your family net income (line 23600 of your tax return, plus your spouse’s or common-law partner’s, if applicable).
   • Minus: Any Universal Child Care Benefit (UCCB) or Registered Disability Savings Plan (RDSP) income received (lines 11700 and 12500).
   • Plus: Any UCCB or RDSP amounts repaid (lines 21300 and 23200).

Below are detailed examples for families with different numbers of children and income levels.

These calculations use the 2025-2026 rates and thresholds.

One Child

• AFNI Below $37,487 (increases from 36,502):
  • You receive the maximum benefit:
    • Under 6: $7,997 per year ($666.42 per month).
    • Aged 6 to 17: $6,748 per year ($562.33 per month).
• AFNI Between $37,487 and $81,222:
  • Reduction: 7% of income above $37,487.
  • Example: Martha has one child under 6 and an AFNI of $45,000.
    • Income over threshold: $45,000 – $37,487 = $7,513.
    • Reduction: $7,513 × 7% = $525.91.
    • Annual payment: $7,997 – $525.91 = $7,471.09 (about $622.59 per month).
• AFNI Above $81,222:
  • Reduction: $3,061 + 3.2% of income above $81,222.
  • Example: Martha has one child under 6 and an AFNI of $100,000.
    • Income over threshold: $100,000 – $81,222 = $18,778.
    • Partial reduction: $18,778 × 3.2% = $600.89.
    • Total reduction: $600.89 + $3,061 = $3,661.89.
    • Annual payment: $7,997 – $3,661.89 = $4,335.11 (about $361.25 per month).

Two Children

• AFNI Below $37,487:
  • Maximum benefit per child:
    • Under 6: $7,997 per year ($666.42 per month).
    • Aged 6 to 17: $6,748 per year ($562.33 per month).
• AFNI Between $37,487 and $81,222:
  • Reduction: 13.5% of income above $37,487.
  • Example: Fatima has two children under 6 and an AFNI of $60,000.
    • Income over threshold: $60,000 – $37,487 = $22,513.
    • Reduction: $22,513 × 13.5% = $3,039.25.
    • Annual payment: ($7,997 × 2) – $3,039.25 = $12,954.75 (about $1,079.56 per month).
• AFNI Above $81,222:
  • Reduction: $5,904 + 5.7% of income above $81,222.
  • Example: Fatima has two children under 6 and an AFNI of $125,000.
    • Income over threshold: $125,000 – $81,222 = $43,778.
    • Partial reduction: $43,778 × 5.7% = $2,495.34.
    • Total reduction: $2,495.34 + $5,904 = $8,399.34.
    • Annual payment: ($7,997 × 2) – $8,399.34 = $7,594.66 (about $632.88 per month).

Three Children

• AFNI Below $37,487:
  • Maximum benefit per child:
    • Under 6: $7,997 per year ($666.42 per month).
    • Aged 6 to 17: $6,748 per year ($562.33 per month).
• AFNI Between $37,487 and $81,222:
  • Reduction: 19% of income above $37,487.
  • Example: Julie has three children aged 6 to 17 and an AFNI of $50,000.
    • Income over threshold: $50,000 – $37,487 = $12,513.
    • Reduction: $12,513 × 19% = $2,377.47.
    • Annual payment: ($6,748 × 3) – $2,377.47 = $17,866.53 (about $1,488.87 per month).
• AFNI Above $81,222:
  • Reduction: $8,310 + 8% of income above $81,222.
  • Example: Julie has three children aged 6 to 17 and an AFNI of $150,000.
    • Income over threshold: $150,000 – $81,222 = $68,778.
    • Partial reduction: $68,778 × 8% = $5,502.24.
    • Total reduction: $5,502.24 + $8,310 = $13,812.24.
    • Annual payment: ($6,748 × 3) – $13,812.24 = $6,431.76 (about $535.98 per month).

Four or More Children

• AFNI Below $37,487:
  • Maximum benefit per child:
    • Under 6: $7,997 per year ($666.42 per month).
    • Aged 6 to 17: $6,748 per year ($562.33 per month).
• AFNI Between $37,487 and $81,222:
  • Reduction: 23% of income above $37,487.
  • Example: Kira has four children aged 6 to 17 and an AFNI of $45,000.
    • Income over threshold: $45,000 – $37,487 = $7,513.
    • Reduction: $7,513 × 23% = $1,727.99.
    • Annual payment: ($6,748 × 4) – $1,727.99 = $25,264.01 (about $2,105.33 per month).
• AFNI Above $81,222:
  • Reduction: $10,059 + 9.5% of income above $81,222.
  • Example: Kira has four children aged 6 to 17 and an AFNI of $200,000.
    • Income over threshold: $200,000 – $81,222 = $118,778.
    • Partial reduction: $118,778 × 9.5% = $11,283.91.
    • Total reduction: $11,283.91 + $10,059 = $21,342.91.
    • Annual payment: ($6,748 × 4) – $21,342.91 = $5,649.09 (about $470.75 per month).

Families can use the CRA’s online Child Benefit Calculator Canada Child Benefit Calculator to estimate their personalized payments based on their specific circumstances.

To qualify for the CCB, families must meet specific criteria related to residency, caregiving responsibilities, and the child’s age.

Here’s a breakdown of the eligibility requirements:

1. Residency:
   • You must be a Canadian resident for tax purposes, including:
     • Canadian citizens.
     • Permanent residents.
     • Protected persons (e.g., refugees).
     • Temporary residents who have lived in Canada for at least 18 consecutive months with a valid permit in the 19th month (e.g., work or study permit, excluding permits marked “does not confer status”).
2. Care Responsibility:
   • You must live with the child and be primarily responsible for their care and upbringing. This includes parents, guardians, or individuals with custody (e.g., foster parents).
3. Child’s Age:
   • The child must be under 18 years old at the time of application and throughout the benefit year.

Special Cases: Temporary Residents and New Immigrants

• Temporary Residents: Eligible if they’ve resided in Canada for 18 consecutive months and hold a valid permit in the 19th month. This ensures temporary residents with established ties to Canada can access the CCB, supporting families like international students or workers.
• New Immigrants: Permanent residents qualify immediately upon arrival. Other immigrants, such as refugees or protected persons, may need to establish residency status.

Retroactive payments are available for up to 10 years if eligibility was missed due to delayed applications or unfilled tax returns.

Eligibility is contingent on filing annual tax returns, as the CRA uses your AFNI to calculate payments.

Failure to file taxes can result in delayed or suspended benefits.

Applying for the CCB is straightforward, with multiple options to suit different needs. Here’s how to get started:

1. Online Application:
   • Use the CRA My Account portal.
   • Register or log in, verify your identity, and submit your application with details about your child and residency status.
   • This is the fastest method, with processing times averaging 8 weeks.
2. Mail Application:
   • Complete Form RC66 (Canada Child Benefit Application), available on the CRA website.
   • If applying late (more than 11 months after eligibility begins), include Form RC66SCH (Status in Canada/Statement of Income) with proof of residency, such as a birth certificate, passport, or immigration documents.
   • Mail the forms to your local tax centre (find locations at CRA Tax Centres).
3. Newborns:
   • In provinces like Ontario and British Columbia, parents can apply for the CCB through provincial birth registration services, often at the hospital or online. This automated process links the birth registration to the CRA, streamlining approval.
   • For example, Ontario’s Newborn Registration Service allows parents to apply for the CCB alongside registering their child’s birth.

Tips for a Smooth Application

• Apply Early: For newborns, apply as soon as possible to avoid delays. Payments typically begin the month after approval.
• Provide Documentation: Late applicants must submit proof of eligibility, such as a child’s birth certificate or immigration records.
• File Taxes Annually: The CRA requires up-to-date tax returns to assess eligibility and calculate payments. Missing tax filings can pause or reduce benefits.
• Check Status: Use CRA My Account to track your application or payment status.

Your bank account receives the approved payments directly on the scheduled dates.

Retroactive payments may be issued for up to 10 years if you were eligible but did not apply earlier.

The CRA issues CCB payments on or around the 20th of each month, adjusted if the date falls on a weekend or statutory holiday.

Below are the confirmed CCB payment dates for 2025:

• July 18, 2025 (first payment with the 2.7% increase)
• August 20, 2025
• September 19, 2025
• October 20, 2025
• November 20, 2025
• December 12, 2025
• January 20, 2026
• February 20, 2026
• March 20, 2026
• April 20, 2026
• May 20, 2026
• June 19, 2026

These dates ensure consistent support throughout the year. Families should update their banking information via CRA My Account to avoid payment disruptions.

A significant policy update, effective January 2025, extends CCB and CDB payments for six months after a child’s death.

This change recognizes the financial burdens families face during bereavement, such as funeral costs or counselling services.

Previously, payments stopped immediately after a child’s passing, but this extension offers compassionate relief during a difficult time.

To qualify, families must notify the CRA of the child’s death, typically through CRA My Account or by contacting the agency directly.

The CRA will automatically extend payments for the six-month period.

In addition to the federal CCB, some provinces offer supplementary benefits to support families. For example:

• British Columbia Family Benefit: In 2024, the BC government announced enhancements to this program, increasing payments for low- and middle-income families.
  • Eligible families can receive up to $1,750 annually for a single child, with additional amounts for more children. These payments are often combined with the CCB for a single monthly deposit.
• Ontario Child Benefit (OCB): Provides up to $1,509 per child per year for low-income families, complementing the CCB.

Families should check with their provincial government for details on additional benefits, eligibility, and application processes.

These programs, combined with the CCB, create a robust support network for Canadian families.

To ensure you receive the full CCB amount you’re entitled to, follow these tips:

1. File Taxes Annually: Even if your income is low or tax-exempt, file your tax return every year to confirm eligibility and update your AFNI.
2. Update Your Information: Notify the CRA of changes in marital status, number of children, or residency through CRA My Account to avoid payment interruptions.
3. Apply for the CDB if Eligible: If your child has a disability, submit Form T2201 to access the additional $3,411 annual benefit.
4. Use the CRA Calculator: Estimate your payments using the CRA Child Benefit Calculator to plan your budget.
5. Check Provincial Benefits: Explore additional supports like the BC Family Benefit or Ontario Child Benefit to supplement your CCB payments.

The Canada Child Benefit increase, effective July 2025 underscores Canada’s commitment to supporting families and reducing child poverty.

With maximum payments rising to $7,997 for children under 6 and $6,748 for those aged 6 to 17, families will gain crucial financial relief to navigate rising costs.

Also, the Child Disability Benefit, now at $3,411 annually, further supports families with special needs, while recent policy changes, like the six-month payment extension after a child’s death, reflect a compassionate approach to social support.

To take full advantage of the CCB, ensure your tax returns are up to date, apply promptly if you’re a new parent or immigrant, and explore provincial benefits for additional support.

For more information, visit the Canada Child Benefit Overview or contact the CRA at 1-800-387-1193.

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