The Government of Canada has announced a notable update to the Canada Child Benefit (CCB) that will take effect in July 2025. In response to persistent inflation and the rising cost of living, the federal government will be increasing monthly CCB payments for eligible families. This change, officially confirmed in May 2025, aims to provide greater financial support to parents struggling with daily expenses.
Why the Government Is Raising the CCB
The CCB is reviewed and adjusted annually to align with inflation and ensure it continues to provide meaningful financial assistance. Throughout late 2024 and early 2025, inflation remained elevated—especially in key areas such as housing, food, and childcare. To help families maintain financial security amid these conditions, the federal government has updated the benefit amounts accordingly.
This increase reflects a continued commitment to child welfare and to helping families keep up with economic pressures without sacrificing essential needs or long-term financial goals.
Updated Canada Child Benefit Amounts for 2025–2026
Starting in July 2025, families will receive the following revised maximum annual payments:
| Child’s Age | 2024–25 Annual Benefit | 2025–26 Annual Benefit | Estimated Monthly Increase |
|---|---|---|---|
| Children under 6 | $7,437 | $7,689 | Approx. $21 |
| Children aged 6 to 17 | $6,275 | $6,483 | Approx. $17 |
For example, a family with two children under six can expect about $504 more per year, while families with older children will also see a meaningful increase. As the CCB is income-tested, the actual payment will depend on adjusted family net income.
Who Qualifies for the Increased CCB?
To receive the higher payment starting July 2025, families must continue to meet standard eligibility requirements:
- You must be living with a child under the age of 18.
- You must be a Canadian resident for tax purposes.
- Income tax returns for 2024 must be filed, even if no income was earned.
The CRA uses tax return data to calculate CCB amounts. Therefore, it’s vital that both parents (if applicable) file their 2024 taxes on time. Late filings can delay or reduce CCB payments for the new benefit year.
Estimating Your CCB for July 2025 and Beyond
The Canada Revenue Agency (CRA) offers a user-friendly CCB calculator that helps families estimate their monthly payments. You’ll need to input:
- Number of children
- Their ages
- Family net income (from 2024)
Families should also verify or update their direct deposit details before July to prevent delays. Additionally, the CRA will issue personalized CCB letters in late June 2025, outlining the exact payment schedule and amounts for the 2025–26 period.
New Developments and Updates
In May 2025, the CRA also announced it would begin using an enhanced verification system to ensure that only eligible families receive the full benefit. This includes checks against recent tax filings and residency documentation.
Additionally, the CRA is improving its digital tools and has introduced a new mobile app update to allow parents to track payment statuses, update their information, and receive push notifications about upcoming deposits.
Conclusion
The CCB increase starting July 2025 is a meaningful step to support Canadian families amid continuing economic challenges. With essentials becoming more expensive, this benefit adjustment ensures that parents have better financial footing to care for their children. Staying up to date on tax filing, using the CRA’s calculator, and confirming your account details are key steps to make the most of this upcoming increase.
FAQs
What is the Canada Child Benefit?
The Canada Child Benefit (CCB) is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18.
When will the increased CCB payments start?
The new payment amounts will begin in July 2025 and apply to the 2025–2026 benefit year.
How is the CCB calculated?
The CCB is based on family net income, the number of children, and their ages. As income rises, the payment amount gradually decreases.
Do I need to reapply each year?
No. However, you must file your income tax return annually for the CRA to assess your eligibility and update your payment amount.
Can I still get the CCB if I didn’t earn income in 2024?
Yes. Even with zero income, you must still file your taxes to remain eligible.
What happens if I miss the tax deadline?
Missing the deadline could delay or reduce your payments. The CRA requires up-to-date tax information to process benefits.
How can I estimate my new payment?
Use the CRA’s CCB calculator online, which allows you to project payments based on your family details and income.
Will I receive a notice about my new payment?
Yes. The CRA will mail personalized payment notices in late June 2025, outlining your new benefit amounts.
Is the CCB taxable?
No. The CCB is completely tax-free and does not count as income.
Where can I update my payment or deposit info?
You can log into your CRA My Account or use the CRA mobile app to update your banking or address details.
Click here to know more.