Did you know that only 59% of Canadians with disabilities aged 25 to 64 are employed compared to 80% of those without disabilities? Additionally, those with disabilities are twice as likely to live in poverty compared to those without disabilities. Working Canadians with mild disabilities earn 12% less on average than Canadians without disabilities, and those with more severe disabilities earn 51% less.
These statistics highlight the challenges that many working-age Canadians with disabilities face. This information prompted the federal government to introduce Bill C-22, the Canada Disability Benefit Act, in June 2022. In June 2023, the disability benefit received royal assent, turning it into law.
The purpose of the Canada Disability Benefit (CDB) is to improve the financial security of working-age persons with disabilities. The goal is to create a monthly payment that provides direct financial support to eligible Canadians, helping to reduce poverty and enhance the quality of life for those with disabilities.
Key Takeaways
- The new Canada Disability Benefit officially launches in June 2025, with payments beginning in July 2025
- Maximum benefit amount: $2,400 per year ($200 monthly) for 2025-2026
- Canada disability benefit eligibility: ages 18-64, approved for the Disability Tax Credit (DTC), Canadian residency, income below specified thresholds
- Payments are made on the third Thursday of each month
- Income thresholds: $23,000 for single individuals, $32,500 for couples
- Working income exemption: first $10,000 of employment income is exempt from calculations
- Benefit amount will be adjusted annually for inflation starting July 2026
Who is Eligible for the Canada Disability Benefit?
The Canada Disability Benefit CDB has specific eligibility requirements that applicants must meet to qualify for the program. Here are the key criteria:
Age Requirements
- You must be between the ages of 18 and 64
- If you're under 18, you can apply after you turn 17.5, but your application won't be processed until your 18th birthday
- If you're 65 or older, you might be eligible to receive back payments for up to 24 months from your application date, up to the month you turn 65
Disability Status
- You must be approved for the Disability Tax Credit (DTC)
- The DTC approval must be valid during the benefit payment period
Residency Status
You must be a Canadian resident for income tax purposes and have one of the following:
- Canadian citizen status
- Permanent resident status
- Protected person status
- Registration under the Indian Act
- Temporary resident status (must have lived in Canada for the previous 18 months and have a valid permit)
Income Requirements
- Your adjusted family net income must be below certain thresholds
- For the 2025-2026 benefit year, the income thresholds are:
- $23,000 for single individuals
- $32,500 for couples (combined income)
- The benefit amount gradually decreases as your net income exceeds these thresholds
Tax Filing Requirements
- Both you and your spouse or common-law partner (if applicable) must have filed your income tax return for the 2024 tax year to receive payments for the July 2025 to June 2026 period
Exclusions
You are not eligible for the Canada disability benefit if you:
- Are serving a sentence of imprisonment of 2 years or more in a federal penitentiary (except for the first and last month of incarceration)
- Do not meet the residency requirements
- Have not been approved for the Disability Tax Credit DTC
- Have not filed your income tax return (or your spouse or common-law partner has not filed)
How Much Can You Get With The Canada Disability Benefit?
Benefit Amount
For the 2025-2026 benefit period (July 2025 to June 2026), the maximum amount you could receive is:
- $2,400 per year ($200 per month)
This amount will be adjusted annually for inflation starting in July 2026 to reflect changes in the cost of living. Your benefit payment will not decrease if the cost of living goes down.
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How Benefit Amounts are Calculated
The Canada disability benefit is income-tested, which means the amount you receive depends on your adjusted family net income:
- If your adjusted family net income is below the threshold ($23,000 for singles, $32,500 for couples), you'll receive the maximum benefit amount
- If your adjusted family net income exceeds the threshold, your benefit is reduced by 20 cents for every dollar above the threshold
Working Income Exemption
To encourage workforce participation, the first $10,000 of employment income is exempt from the benefit calculation. This means you can earn up to $10,000 from work without affecting your benefit amount.
Example Calculation
For a single person with an income of $28,000, including $12,000 from employment:
- Total income: $28,000
- Exempt employment income: $10,000
- Adjusted income for calculation: $18,000
- Since $18,000 is below the $23,000 threshold, they would qualify for the full $2,400 annual benefit
For a single person with an income of $35,000, including $10,000 from employment:
- Total income: $35,000
- Exempt employment income: $10,000
- Adjusted income for calculation: $25,000
- Amount over threshold: $25,000 - $23,000 = $2,000
- Reduction: 20% of $2,000 = $400
- Annual benefit: $2,400 - $400 = $2,000 ($166.67 per month)
Back Payments and Retroactive Payments
When you apply for the Canada disability benefit, you might receive back payments for past months for which you were eligible. You can receive retroactive payments for up to 24 months from when your application is received, but not for any months before July 2025.
How to Apply for the Canada Disability Benefit
Applications for the Canada Disability Benefit opened on June 20, 2025. There are several ways to apply:
Application Methods
- Online (Recommended for faster application process)
- Visit the Service Canada website
- Log in to your account
- Select the Canada disability benefit application
- Follow the prompts to complete your application
- By Mail
- Complete a printable Canada Disability Benefit application form
- Mail it to:
Service Canada Centre
CDB Processing Centre
P.O. Box 60
Boucherville, QC J4B 5E6
- In Person
- Visit a Service Canada office
- Bring your completed application form and required documents
- By Phone
- Call 1-833-486-3007
- Have your information ready when you call
Required Information for Application
The information you need depends on whether you're applying for yourself or on behalf of someone else:
If You Received a Letter from Service Canada
Some eligible Canadians living with disabilities have received letters from Service Canada with a unique application code. If you received this letter, you'll need:
- The 6-digit application code (found in the upper right corner of the letter)
- Your Social Insurance Number (SIN)
- Your legal status in Canada
If You're Applying for Yourself (Without a Letter)
You'll need to provide:
- Your Social Insurance Number
- Your legal status in Canada (citizenship, permanent resident, etc.)
- Your net income (line 23600 from your 2024 notice of assessment) - optional but recommended to speed up processing
- Your direct deposit information (if you want to receive payments by direct deposit)
If You're Applying on Behalf of Someone Else
In addition to the applicant's information, the legal representative applies on behalf of the person with the following:
- Proof of your legal authority to act on behalf of the applicant (court order, power of attorney, etc.)
- Your government-issued ID
- Your mailing address and organization's information (if applicable)
Application Processing Time
- Most applications are expected to be processed within about 28 calendar days, though some may take longer.
- If approved, your first payment will be issued on the third Thursday of the month following your approval
- The first payment will include any applicable back payments
Payment Schedule and Details
Payment Dates
Payments are expected to continue on the third Thursday of each month in 2026, following the same schedule pattern.
- July 17, 2025
- August 21, 2025
- September 18, 2025
- October 16, 2025
- November 20, 2025
- December 18, 2025
- January 15, 2026
- February 19, 2026
- March 19, 2026
- April 16, 2026
- May 21, 2026
- June 18, 2026
Payment Methods
You can choose to receive your payments by:
- Direct Deposit
- Payments are deposited directly into your bank account
- This is the fastest and most secure method
- You'll need to provide your banking information (branch number, institution number, and account number)
- Cheque
- Payments are mailed to your mailing address
- May take longer to receive than direct deposit
Minimum Payment Amount
If your total benefit amount for the year is less than $240 ($20 per month), you will receive one lump sum payment in July rather than monthly payments.
Other Benefits For Canadians With Disabilities
The Canada disability benefit is one of several programs available to Canadians with disabilities. Here are some other important benefits to be aware of:
Disability Tax Credit (DTC)
The Disability Tax Credit is a non-refundable tax credit that helps people with disabilities or their supporting family members reduce the amount of income tax they have to pay. The DTC is also a gateway to accessing other disability benefits, including the Canada Disability Benefit CDB.
To qualify for the Disability Tax Credit DTC, you need to have a severe and prolonged physical or mental impairment that affects your ability to perform basic activities of daily living. A medical practitioner must certify your application.
Canada Pension Plan (CPP) Disability Benefits
The CPP disability benefit provides monthly payments to eligible contributors who are under 65 and have a disability that prevents them from working. To qualify, you must:
- Be under 65 years old
- Have made sufficient contributions to the CPP
- Have a mental or physical disability that prevents you from doing substantially gainful work
- Have a disability that is long-term and of indefinite duration, or is likely to result in death
Registered Disability Savings Plan (RDSP)
The RDSP is a savings plan designed to help Canadians with disabilities save for the future. The federal government contributes matching grants and bonds, making it an effective way to build financial security.
To open an RDSP, the beneficiary must:
- Be eligible for the Disability Tax Credit
- Be under 60 years of age
- Be a Canadian resident
- Have a Social Insurance Number
Provincial Disability Programs
Each province and territory offers additional support for people with disabilities. These provincial disability programs may include income support, health benefits, housing assistance, and employment programs. Check with your provincial or territorial government for specific programs available in your area.
Quebec Pension Plan Disability Benefit
If you live in Quebec, you can apply for the Quebec Pension Plan Disability Benefit if one of the following applies to you:
- Have only worked in Quebec
- Currently live in Quebec and have worked both in the province of Quebec and another province or territory
- Worked in Quebec, currently live outside of Canada, and Quebec was the last province you lived in
Education Funding for 2025-2026
The Canadian government provides grants and student loan programs for students with disabilities for the 2025-2026 academic year:
- Canada Student Grant for Students with Permanent Disabilities: $2,800 per year until the end of the 2025-2026 school year.
- Canada Student Grant for Services and Equipment for Students with Permanent Disabilities: This grant helps cover the costs of needed services and equipment (like tutors, note-takers, interpreters, braillers, or technical aids). The maximum remains at $20,000 per school year.
- Severe Permanent Disability Benefit: Still available for those who can't repay their Canada Student Loans due to a severe permanent disability, allowing eligible applicants to have their debt cancelled.
Frequently Asked Questions
What is the Canada Disability Benefit?
The Canada Disability Benefit is a new federal program that provides financial support to working-age Canadians with disabilities who have low incomes. It is designed to complement existing federal and provincial support programs.
When does the program start?
The first month of eligibility for the Canada disability benefit is June 2025. Payments begin in July 2025 for applications received and approved by June 30, 2025.
Do I automatically qualify if I have the Disability Tax Credit?
Having the Disability Tax Credit is a requirement for the Canada disability benefit, but you must also meet other eligibility criteria, including age, residency, and income requirements. You must apply specifically for the Canada Disability Benefit CDB.
Will the Canada Disability Benefit affect my other benefits?
The Canada disability benefit is designed to supplement, not replace, existing benefits. Efforts have been made to ensure that receiving the CDB will not affect eligibility for other federal benefits. However, the impact on provincial disability programs may vary. Check with your provincial or territorial government for specific information.
What if I'm not approved for the Disability Tax Credit?
You must be approved for the Disability Tax Credit DTC to be eligible for the Canada disability benefit. If you're not currently approved, you'll need to apply for the DTC first. The DTC application requires certification from a medical practitioner.
What if I don't agree with the decision on my application?
If you disagree with the decision on your Canada disability benefit application, you can request a reconsideration within 180 days of the date on your decision letter. Contact Service Canada for details on the reconsideration process.
Will the benefit amount change over time?
Yes, the benefit amount will be adjusted annually for inflation starting in July 2026. This ensures that the benefit maintains its purchasing power over time.
What happens if my income changes?
Your benefit amount is calculated based on your adjusted family net income from the previous tax year. Changes in your income will be reflected in your benefit amount for the following benefit year after you file your taxes.
Can I receive back payments?
Yes, you may receive back payments for up to 24 months from the date your application is received, but not for any months before July 2025.
What if I turn 65 while receiving the benefit?
You remain eligible for the Canada disability benefit in the month you turn 65. After that, you may be eligible for other seniors' benefits such as Old Age Security and the Guaranteed Income Supplement.
Looking Towards a Better Future With The Canada Disability Benefit
6.2 million people are living with disabilities in Canada. Of these millions of people, 23% live in poverty. While there are federal, provincial, and territorial supports in place for people with disabilities, there are few that focus specifically on working-age Canadians.
The Canada Disability Benefit represents a significant step forward in addressing the financial challenges faced by Canadians with disabilities. By providing direct financial support, the benefit aims to reduce poverty and improve the quality of life for a vulnerable segment of the population.
As the program evolves, it is expected that adjustments will be made to ensure it effectively meets the needs of Canadians with disabilities. Stay informed about updates to the program by regularly checking the Service Canada website or contacting the Canada Disability Benefit information line at 1-833-486-3007.
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References:
- Government of Canada. Government of Canada reintroduces legislation to create a new Canada Disability Benefit. Accessed October 2, 2023.
- Parliament of Canada. Bill C-22. Accessed October 2, 2023.
- Government of Canada. Canada Pension Plan disability benefits. Accessed October 2, 2023.
- Government of Canada. Landmark Canada Disability Benefit legislation receives royal assent. Accessed October 2, 2023.
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