What is the Canada Disability Benefit?
The Canada Disability Benefit is a federally administered monthly payment for working-age adults with disabilities. It’s designed to supplement existing income support programs and is available to Canadians aged 18 to 64 who qualify for the disability tax credit (DTC).
The maximum benefit is $200 per month ($2,400 annually) for the 12-month period starting July 2025. Beginning July 2026, both the benefit amount and the income thresholds will be adjusted annually, based on inflation (as per the Consumer Price Index).
Who is eligible?
To qualify for the Canada Disability Benefit, applicants must meet the following criteria:
- Aged between 18 and 64 years old: individuals can apply starting at age 17½, but payments begin no earlier than the month they turn 18. Eligibility continues through the month in which the person turns 65.
- Be approved for the disability tax credit: this is available to individuals with severe and prolonged physical or mental impairments.
- Have up-to-date tax filings: the applicant (and their spouse or common-law partner, if applicable) must have filed their 2024 federal income tax return.
- Be a resident of Canada for income tax purposes: this includes Canadian citizens, permanent residents, protected persons, individuals registered under the Indian Act and temporary residents who have lived in Canada for at least 18 months.
- Other restrictions: individuals incarcerated for two years or more are not eligible while in custody, except for the month they enter and the month they are released.
How much could you receive?
The CDB is income-tested and calculated based on adjusted family net income (AFNI), with a working income exemption:
- Single individuals: up to $10,000 in working income is exempted. Full benefits are available if AFNI (after exemption) is $23,000 or less. Benefits are reduced by $0.20 for each dollar above that threshold.
- Couples (if only one partner is eligible): up to $14,000 in working income is exempted. Full benefits are available if AFNI (after exemption) is $32,500 or less. Benefits are reduced by $0.20 for each dollar above that threshold.
- Couples (if both partners are eligible): each person may receive the maximum benefit if the household AFNI (after a combined $14,000 exemption) is $32,500 or less. Benefits are reduced by $0.10 per dollar above that amount, for each person.
Note: payments are made monthly, and retroactive payments are available for up to 24 months, but not before July 2025.
How to apply
Applications opened on June 20, 2025, and the first payments were issued in July 2025 for those approved by June 30, 2025.
There are three ways to apply:
- Online: via a secure, accessible portal on the Service Canada website.
- In-person: at Service Canada Centres across the country.
- By phone: through a dedicated Canada Disability Benefit line.
The application process has been designed to be as barrier-free and inclusive as possible.
Tips for a successful application
To maximize your chances of approval and avoid delays:
- File your income taxes promptly.
- Ensure your disability tax credit is approved.
- Use the CDB estimator tool on the government website to understand your potential benefit.
- Seek help from disability advocacy organizations if you need support navigating the process.
- Apply early, especially if you’re nearing your 18th or 65th birthday.
The bigger picture
The Canada Disability Benefit represents a significant advancement in Canada's commitment to supporting individuals with disabilities. By providing a consistent and accessible source of income, the CDB empowers recipients to cover essential costs and live with greater dignity and independence. As Canada moves forward with this initiative, it’s important for eligible individuals to apply to help ensure the benefit truly makes a tangible difference in the lives of those it aims to support.
For more information or to apply, visit Service Canada or contact your nearest Service Canada Centre.
Written and published by IG Wealth Management as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an IG Wealth Management Advisor.
