John Hughie
In a major win for families caring for children with disabilities, the Canada Revenue Agency (CRA) has confirmed a $2,000 increase to the Child Disability Benefit (CDB) starting July 2025.
This financial boost aims to ease the rising costs of caregiving, therapies, adaptive equipment, and medical needs.
The federal government’s move reflects a strong commitment to inclusivity and long-term support for vulnerable households across Canada.
What Is the Child Disability Benefit (CDB)?
The Child Disability Benefit is a tax-free monthly payment made to families who care for a child under 18 with a severe and prolonged impairment in physical or mental functions. It is an added supplement to the Canada Child Benefit (CCB) and is designed to help with extra expenses related to a child’s disability.
With this new update, the CRA is increasing the CDB by $2,000 annually, distributed monthly as $166 starting in July 2025.
Monthly Breakdown: How the $2,000 Increase Works
| Detail | Amount / Information |
|---|---|
| Total Increase Amount | $2,000 per year |
| Monthly Increase | $166 per month |
| Start Date | July 2025 |
| Payment Method | Automatically added to Canada Child Benefit |
| Application Needed? | No, increase is applied automatically |
| Frequency | Monthly through the benefit year (July–June) |
This structured increase gives families a more predictable and manageable way to cover recurring expenses such as therapy sessions, educational resources, or assistive technology.
Who Is Eligible for the 2025 CDB Increase?
To receive the increased CDB amount, families must meet CRA’s updated eligibility requirements:
- Residency: Child and caregiver must be residents of Canada.
- Age Requirement: Child must be under 18 years old.
- Disability Tax Credit (DTC): The child must have an approved and valid DTC certificate.
- Income Threshold: Based on Adjusted Family Net Income (AFNI) from the 2024 tax return.
- Tax Compliance: 2024 taxes must be filed on time to avoid delays or reductions in payment.
Newly approved DTC certificates in 2025 will also qualify families for the boosted amount automatically—no additional forms required.
How to Ensure You Receive the Full Benefit
To avoid delays and receive the full $2,000 increase starting in July 2025, families are advised to:
- Ensure DTC is valid through 2025
- File 2024 income taxes on time
- Update CRA with any changes in marital status, custody, address, or banking information
- Use CRA My Account to monitor payment status, eligibility, and tax information
Payments will be made using the same direct deposit or mailing method already set up for the CCB.
Additional Provincial and Territorial Benefits
Receiving the Child Disability Benefit can also make families eligible for extra support at the provincial or territorial level, including:
- Respite care funding
- Housing assistance programs
- Education grants for children with learning challenges
- Subsidies for mobility aids, communication devices, and assistive technology
Families are encouraged to contact local disability support services to check if the increase affects their provincial entitlements.
CRA’s New Dashboard to Launch July 2025
To enhance transparency and access, the CRA will launch an updated “My Account” dashboard in July 2025. This redesigned platform will allow families to:
- Track real-time payments
- Check DTC and benefit eligibility status
- Update personal and financial information quickly
- Get alerts on upcoming deadlines or compliance needs
This upgrade will make it even easier for caregivers to manage their benefits without needing to call or mail the CRA.
No Separate Application Needed
Families who already qualify and are receiving the CDB do not need to reapply for the increase. If your child has a valid DTC certificate and your 2024 taxes are filed properly, the additional $166 monthly payment will be automatically included starting July 2025.
This streamlined process ensures zero paperwork, no delays, and reliable income support for the year ahead.
Summary of What to Do Now
| Step | Why It Matters |
|---|---|
| File 2024 tax return on time | CRA uses this to calculate eligibility |
| Confirm DTC status for your child | It must be valid for 2025 to receive payments |
| Update CRA with any personal changes | Prevent missed payments or delays |
| Monitor “My Account” starting July 2025 | Easy way to stay informed and updated |
The $2,000 Child Disability Benefit increase is a timely and impactful measure to support families managing the complex and ongoing costs of caring for a child with a disability. Beginning July 2025, the monthly supplement of $166 will be delivered automatically through the Canada Child Benefit system.
With no application process, minimal red tape, and new digital tools to help manage and monitor payments, families now have more reliable financial support and greater peace of mind.
If you care for a child with a disability, now is the time to ensure your paperwork is in order, your DTC is valid, and your taxes are filed—because this money is meant to help you and your child thrive.
FAQs
Will I need to submit a new application for the increased benefit?
No. If your child is approved for the DTC and your taxes are up to date, the $2,000 increase will be added automatically.
When will I see the increased amount in my payments?
The increase will begin with the July 2025 payment, and will be split monthly across the benefit year.
What if my child’s DTC was recently approved in 2025?
You will still qualify. The CRA will automatically apply the increase without needing a separate application.
