As a new wave of federal payments begins rolling out this month, low-income workers across Canada could be in for a welcome financial boost. Thanks to updates from the Canada Revenue Agency (CRA), the Canada Workers Benefit (CWB)—a tax credit designed to support working Canadians with modest incomes—is increasing in value for 2025.
Here’s everything you need to know about who qualifies, how much you could get, and when your money is arriving.
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What Is the Canada Workers Benefit (CWB)?
The Canada Workers Benefit (CWB) is a refundable tax credit designed to provide financial assistance to working individuals and families earning low income. It consists of two components:
- A basic amount, available to all eligible recipients.
- A disability supplement, for those who also qualify for the Disability Tax Credit (DTC).
The CWB aims to make work more rewarding by reducing poverty among low-wage earners and boosting income stability.
What Is the Advanced Canada Workers Benefit (ACWB)?
The Advanced Canada Workers Benefit (ACWB) gives eligible Canadians access to a portion of their benefit before tax season.
Instead of receiving the full credit when you file your taxes, the CRA distributes up to 50% of your expected annual benefit in three advance payments throughout the year:
- July
- October
- January
These payments are automatic based on your most recent tax return—no additional application required.
Who Is Eligible for the Canada Workers Benefit?
To receive the CWB, you must meet the following requirements:
- Be a Canadian resident throughout the year.
- Be at least 19 years old by December 31 (or live with a spouse, common-law partner, or child).
- Have earned working income.
- Have a net income below the regional threshold based on family size and location.
Income Threshold Examples:
- Single workers: Up to $36,749
- Families (including couples and single parents): Up to $48,093
Ineligibility applies if:
- You were a full-time student for over 13 weeks in the year (without a dependent).
- You were incarcerated for 90 days or more.
- You have a tax-exempt status, such as diplomatic immunity.
Disability Supplement Requirements:
To qualify for the additional disability supplement, you must:
- Be eligible for the Disability Tax Credit (DTC).
- Have an approved Form T2201 filed with the CRA.
Income limits for the disability supplement are higher, which means some who don’t qualify for the base benefit may still be eligible for this extra amount.
How to Apply for the Canada Workers Benefit
There’s no separate application form. Simply:
- Claim the CWB when you file your taxes.
- If you file electronically, your tax software will guide you through the process.
- If filing by paper, complete and submit Schedule 6.
If you qualify for the disability supplement:
- The qualifying person should claim both the base amount and disability supplement.
- If both partners qualify, only one can claim the base benefit, but each can claim the disability supplement individually.
Advance payments through the ACWB are handled automatically by the CRA if you file before November 1 of the benefit period.
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How Much Can You Receive from the CWB?
Your payment depends on your income, family status, and province/territory. The following are maximum federal amounts for the 2024 tax year:
Basic Canada Workers Benefit:
- $1,590 for single individuals
(Begins to reduce after income exceeds $26,149; cuts off at $36,749) - $2,739 for families
(Begins to reduce after income exceeds $29,833; cuts off at $48,093)
Disability Supplement:
- Up to $821 extra if you qualify
- Reductions begin at:
- $36,748 for singles
- $48,091 for families
- Maximum cut-offs:
- $42,222 for singles
- Up to $59,038 for families (if both partners qualify)
- Reductions begin at:
What Will the July 2025 Payment Look Like?
The July 2025 advance payment—the first installment of the benefit year—reflects updated thresholds and inflation adjustments. Here’s what you could receive:
- Up to $265 if you’re single
- Up to $456.50 if you have a spouse, partner, or dependants
- Plus an extra $136.83 if you’re eligible for the disability supplement
These are federal maximums—if you live in Quebec, Alberta, or Nunavut, your amounts and thresholds may differ.
Is the Canada Workers Benefit Taxable?
No. The CWB is a refundable tax credit, not taxable income.
Whether you receive the money during tax season or in advance payments, it does not count toward your taxable income—meaning you won’t pay any taxes on it, even if you get a refund or reduce your taxes to $0.
Canada Workers Benefit Payment Dates for 2025–2026
Here are the official ACWB payment dates for the current benefit year:
- July 11, 2025
- October 10, 2025
- January 12, 2026
Final Thoughts: Don’t Miss Out
The Canada Workers Benefit continues to be a vital lifeline for working Canadians struggling to make ends meet. With inflation adjustments and rising eligibility thresholds, more people could see higher payments this year.
If your income or household circumstances changed in 2024, make sure your tax return is up to date. That return determines your eligibility—and the CRA does the rest.