As living costs continue to rise, the Canadian government is stepping in to provide additional financial support to families through an increase in the Canada Child Benefit (CCB) starting July 2025. This guide offers a detailed look at how much more families can expect to receive, updated income thresholds, eligibility rules, and CRA payment dates for the 2025–2026 benefit year.
Whether you’re a parent, guardian, or newcomer to Canada, this article will help you navigate the upcoming changes and understand how to maximize your benefits.
Table of Contents
What Is the Canada Child Benefit?
The Canada Child Benefit (CCB) is a tax-free monthly payment administered by the Canada Revenue Agency (CRA) to help families with the cost of raising children under 18. Introduced in 2016, the CCB replaced earlier programs such as the Universal Child Care Benefit (UCCB) and Canada Child Tax Benefit (CCTB).
The program is income-tested, meaning lower- and middle-income households receive the most support. In 2024 alone, the CCB provided assistance to more than 6 million children across the country, distributing over $24 billion in benefits.
The CCB is also indexed to inflation, ensuring payments keep pace with increases in the cost of living.
July 2025 CCB Payment Increase: What’s New?
Beginning July 18, 2025, CCB payments will rise by 2.7%, in line with inflation as measured by the Consumer Price Index (CPI). This increase will be in effect until June 2026.
Updated Maximum Annual Payments
- Children under age 6: Up to $7,997 per year (about $666.42/month)
- Children aged 6–17: Up to $6,748 per year (about $562.33/month)
This is an increase from the 2024–2025 benefit levels:
- $7,787/year for children under 6
- $6,570/year for children aged 6–17
Families do not need to reapply for this increase—it will be automatically calculated based on 2024 income tax returns.
How Is the CCB Calculated?
The CCB is based on your Adjusted Family Net Income (AFNI), number of children, and their ages. The benefit phases out as income rises, using a two-threshold reduction formula.
2025–2026 Key Income Thresholds
- Full benefit: Families with AFNI under $37,487
- First reduction rate: 7%–23% (based on children) for income between $37,487–$81,222
- Second reduction rate: 3.2%–9.5% for income above $81,222
The CRA uses the most recent tax return to calculate these figures.
Real-Life CCB Calculation Examples for 2025–2026
One Child (Under Age 6)
- AFNI under $37,487: $7,997/year
- AFNI of $45,000:
- Reduction: 7% of $7,513 = $525.91
- Annual Payment: $7,471.09
- AFNI of $100,000:
- Reduction: $3,661.89
- Annual Payment: $4,335.11
Two Children (Under Age 6)
- AFNI under $37,487: $15,994/year
- AFNI of $60,000:
- Reduction: $3,039.25
- Annual Payment: $12,954.75
- AFNI of $125,000:
- Reduction: $8,399.34
- Annual Payment: $7,594.66
Three Children (Aged 6–17)
- AFNI under $37,487: $20,244/year
- AFNI of $50,000:
- Reduction: $2,377.47
- Annual Payment: $17,866.53
- AFNI of $150,000:
- Reduction: $13,812.24
- Annual Payment: $6,431.76
Four Children (Aged 6–17)
- AFNI under $37,487: $26,992/year
- AFNI of $45,000:
- Reduction: $1,727.99
- Annual Payment: $25,264.01
- AFNI of $200,000:
- Reduction: $21,342.91
- Annual Payment: $5,649.09
Who Is Eligible for the Canada Child Benefit?
To qualify, you must:
- Be a Canadian resident for tax purposes
- Be the primary caregiver of the child
- Have a child under the age of 18
Additional Eligibility Scenarios
Temporary Residents
You must have lived in Canada for 18 consecutive months and hold a valid permit in the 19th month (excluding permits that say “does not confer status”).
New Immigrants
Permanent residents and protected persons are eligible right away. Retroactive payments can be made for up to 10 years if applications were missed.
Filing taxes annually is mandatory, even with no income, as CRA uses this data to assess benefit amounts.
How to Apply for the CCB
You can apply:
- Online through CRA’s My Account
- At birth, when registering your child
- By mail, using Form RC66
You must provide proof of residency, the child’s birth certificate, and other required documents depending on your status (e.g., immigration papers).
CCB Payment Dates for 2025–2026
Payments are issued monthly, typically around the 20th of each month. These are the projected CRA payment dates:
- July 18, 2025
- August 20, 2025
- September 19, 2025
- October 20, 2025
- November 20, 2025
- December 19, 2025
- …continuing monthly until June 2026
New CCB Changes Introduced in Early 2025
In addition to the inflation adjustment, the government updated income thresholds to reflect wage growth and new poverty metrics, benefiting low- and middle-income families more fairly.
This change means more families may qualify for larger payments than in previous years.
Provincial Child Benefit Supplements
Many provinces offer additional benefits that complement the CCB, including:
- Ontario Child Benefit (OCB)
- Alberta Child and Family Benefit (ACFB)
- BC Family Benefit
These payments are automatically coordinated with the federal CCB and may increase your total monthly support.
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How to Maximize Your CCB Payments
- File taxes on time—even if you had no income.
- Report any change in marital status or custody arrangements.
- Apply for retroactive benefits if you missed past years.
- Check provincial programs for additional benefits.
- Use the CRA’s Child and Family Benefits Calculator to estimate your payments.
Final Thoughts
The Canada Child Benefit increase for 2025–2026 delivers timely relief to millions of Canadian families navigating inflation and rising living expenses. With higher maximum payments, updated income thresholds, and simplified automatic adjustments, the CCB remains one of the most impactful tools for reducing child poverty in Canada.
Take full advantage of these updates by understanding your eligibility, ensuring your tax return is filed, and planning ahead using the payment schedule and benefit calculator.