Canada Child Benefit (CCB) Set to Increase in 2025: Key Details for Families
The Canada Revenue Agency (CRA) has announced a positive change for families feeling the strain of rising inflation: starting in 2025, the Canada Child Benefit (CCB) will see an increase. This annual inflation-based adjustment aims to provide additional financial support to households raising children throughout Canada.
How Much Will the CCB Increase in 2025?
Beginning in July 2025, the CCB will increase by 2.7%, reflecting the current rate of inflation. This means:
- For children under 6 years old: The maximum annual benefit will rise to $7,997, an increase of $210 from 2024.
- For children aged 6 to 17 years old: The maximum benefit will increase to $6,748, up by $178.
While this increase is more modest than the one seen in 2024, it still provides significant support to families as they manage the growing cost of raising children.
When Will the Increase Take Effect?
The new benefit amounts will be reflected starting with the July 2025 payment. This marks the beginning of the new benefit year. It’s important to note that payments will be calculated based on the Adjusted Family Net Income (AFNI) from your 2024 tax return, so it’s crucial to file your taxes on time to ensure there are no delays in receiving the updated payments.
Increased Income Thresholds for 2025
Along with the increase in benefit amounts, the income threshold at which the CCB begins to phase out will also rise:
- The 2024 threshold: $36,502
- The 2025 threshold: $37,487
This means that more families could qualify for the maximum benefit, and families earning slightly above the threshold may experience a smaller reduction in their benefit payments.
What is the Canada Child Benefit (CCB)?
The Canada Child Benefit is a tax-free monthly payment designed to assist parents or guardians raising children under 18. The payment amount is based on:
- Your family’s Adjusted Family Net Income (AFNI) from the previous year.
- The number of children in your household.
- The ages of your children.
Families earning below the established threshold receive the maximum benefit, while those with higher incomes see their payments gradually decrease.
Additional Support for Families with Children with Disabilities
Families with children who qualify for the Disability Tax Credit will also see an increase in the Child Disability Benefit starting in 2025. This additional payment, which is issued alongside the CCB, can provide up to $3,411 annually per eligible child.
- The income threshold for this benefit will rise to $81,222 in 2025.
What Should Families Do Now?
To ensure that you receive the updated CCB amounts on time:
- File your 2024 tax return early to avoid delays in receiving your benefits.
- Ensure your family’s income and child details are correctly reported to the CRA.
- Watch your bank account starting in July 2025 for the updated CCB payments.
This annual inflation adjustment ensures that Canadian families continue to receive essential financial support as they navigate the costs of raising children, helping to ease some of the financial pressures they face.
