John Hughie
The Canada Disability Benefit (CDB) launches in July 2025, offering $200 per month (up to $2,400 annually) to eligible Canadians aged 18–64 with low incomes and approved for the Disability Tax Credit (DTC).
First payments kick in the month after your application is approved—so early applicants (by June 30) will receive July’s payment right away
What is the Canada Disability Benefit?
The Canada Disability Benefit is a federal, income-tested monthly benefit part of Canada’s Disability Inclusion Action Plan. It’s designed to help working‑age adults with disabilities cover daily living costs and is indexed annually for inflation
Key Details in a Snapshot
| Aspect | Details |
|---|---|
| Benefit Amount | $200/month; $2,400 per year (July 2025–June 2026) |
| Indexed | Adjusted annually to reflect inflation |
| Eligibility Window | Retroactive to June 2025 if approved by July; up to 24 months back-pay |
| Age Range | 18–64 years old |
| Tax Returns | 2024 tax return filed (you & spouse/partner) |
| DTC Requirement | Must be approved for the Disability Tax Credit |
| Residency | Canadian resident for tax purposes; includes citizens, PRs, Indigenous peoples, protected persons, temp residents (18+ months) |
Who Qualifies – In Detail
To qualify for the $200 monthly benefit:
- Be aged 18–64.
- Have DTC approval.
- File your 2024 federal income tax return.
- Be a Canadian tax resident (includes several legal categories).
- Have adjusted family net income below thresholds, calculated after working income exemptions
Income-Based Benefit Adjustments
- Working income exemption: Up to $10,000 (single), $14,000 (with partner) is excluded from calculations
- After exempted income, benefit decreases by $0.20 per $1 over the threshold:
- Single: threshold ~$23,000 AFNI.
- Couple: threshold ~$32,500 AFNI.
- At higher incomes, the benefit phases out entirely
When & How You’ll Be Paid
- Applications opened June 20, 2025; apply by June 30, 2025 to get the first payment in July
- Approved later? You’ll still receive back-pay up to 24 months, but not before June 2025
- Payments are issued on the third Thursday of each month:
- July 17, Aug 21, Sept 18, Oct 16, Nov 20, Dec 18, etc.
- Choose direct deposit (recommended) or receive cheques .
How to Apply
- Ensure DTC approval. If not, apply using CRA Form T2201.
- Apply through My Service Canada Account (MSCA), online portal, mail, phone, or in person.
- If you received a Service Canada letter, use your 6-digit code; otherwise, just provide your SIN, tax details, and residency status
- Provide direct deposit info for fast payment.
- Service Canada aims for a decision within 28 days (or 49 days if represented)
Uses & Expected Impact
Recipients often use the benefit for essentials like housing, food, transportation, healthcare, clothing, and rent.
Some direct it towards savings or immediate financial needs. The support boosts autonomy and reduces poverty risk .
The $200 monthly Canada Disability Benefit, starting July 2025, offers a vital financial lift to eligible low‑income adults with disabilities.
By meeting age, residency, DTC, and income criteria—and filing your 2024 taxes—you unlock up to $2,400 annually, including retroactive payments.
It’s easy to apply, mounts quickly after approval, and will directly boost your quality of life.
FAQs
If I missed the June 30 deadline, will I still receive payments?
Yes—late applicants can still receive the benefit, including retroactive payments back to June 2025, as long as you apply within 24 months
Does the Canada Disability Benefit affect other benefits?
No—the Canada Disability Benefit does not reduce other federal benefits like the Canada Child Benefit or Guaranteed Income Supplement
How quickly after approval will I get paid?
Payments are issued the third Thursday of the month following your approval. Most applicants get a decision within 28 days
