The CCB is a tax-free monthly payment from the Government of Canada that is primarily meant to help families by providing them with money necessary for raising children under age 18. Every year, it revises in line with inflation to meet the growing cost of living.
Canada Child Benefit 2025: What Families Need to Know About Increased Payments
Beginning July 2025, the CCB will be raised by 2.7% to bring it in line with current inflation. This will mean:
Children under 6 years of age: The annual benefit will now be increased to $7,997. This means an increase of $210 from the previous year.
Children between 6 and 17 years of age: The annual benefit will be increased to $6,748. That is an increase of $178.
It remains less than the 4.7% adjustment made last year to 2024, but it continues to mean something for families balancing expenses while raising children.
Income Threshold Increase for CCB
Since this measure is income-tested, with payments declining when a household has too high an income, a minimum threshold will increase this coming year in relation to the thresholds mentioned before. This will increase:
2024 threshold $36,502
2025 threshold $37,487
This could result in more families becoming eligible for the maximum benefit and others with incomes just over the threshold will see their payments reduced by a smaller amount.
Increased Support for Children with Disabilities
Families with children who are eligible for the Disability Tax Credit will also enjoy increased Child Disability Benefit. The supplemental payment will be available to an eligible child starting in 2025, and it will amount to up to $3,411 annually.
Steps for Families to Take
To ensure you get the right CCB amount:
1. File Your Taxes on Time: Your CCB is determined based on your family’s net income from the previous year. You must file your 2024 tax return on time so that delay in processing the claim or possible errors in issuing your benefit will be avoided.
2. Keep Information Updated: Notify the Canada Revenue Agency (CRA) of any changes in your family situation, such as the birth of a child, a change in marital status, or a change in income.
3. Monitor Payments: Expect the updated CCB amounts to be reflected in payments starting July 2025. Regularly check your bank account or CRA account to confirm receipt.
By staying informed and proactive, you will maximize the benefits available to support your family’s financial well-being.
