Canada announces $2,400 disability benefit in April 2025: Understand eligibility criteria and application process
The Canadian government has announced a major relief for citizens with disabilities. From July 2025, a new Canada Disability Benefit (CDB) will be launched, which aims to provide financial assistance to economically weaker disabled persons. This scheme will provide tax-free benefits of up to $200 per month i.e. $2,400 annually. If you or someone you know may be eligible for this scheme, it is important that you gather all the information in time.
| Aspect | Details |
|---|---|
| Benefit Amount | Up to $200/month ($2,400/year) |
| Start Date | First payments in July 2025 |
| Application Opens | June 2025 |
| Eligibility Age | 18 to 64 years |
| Residency | Must be a Canadian resident for tax purposes |
| Disability Requirement | Must have an approved Disability Tax Credit (DTC) |
| Income Requirement | Income-tested, with exemption thresholds |
| Tax Filing | Must have filed previous year’s tax return |
| Official Website | Canada Disability Benefit – canada.ca |
What is Canada Disability Benefit?
This is a new federal program that will provide financial support to Canadian citizens aged 18 to 64 who are facing disability. Its aim is to reduce poverty and make disabled citizens self-reliant.
This scheme was made a law in 2023 (under Bill C-22), but its rules were decided in March 2025. The first payment will start in July 2025.
Who is eligible?
To get the Canada Disability Benefit, you must meet the following conditions:
- You must be between 18 and 64 years old.
- You must be a resident of Canada for tax purposes.
- You must be eligible for the Disability Tax Credit (DTC).
- You must have filed an income tax return for the previous year.
- You must be a Canadian citizen, permanent resident, refugee or someone who has been in Canada for more than 18 months.
If you are married or in a common-law relationship, your partner must also file a tax return.
What is the amount of the benefit?
The maximum benefit under this scheme is $200 per month or $2,400 per year. But it is income-based, meaning the benefit can be more or less depending on your annual income.
Income limits:
- The benefit reduction for a single person will start at $23,000.
- The limit for couples is $32,500.
Exempt portion of income:
- Single individuals: Benefits will not be reduced for up to $10,000 of income.
- Couples: Benefits will not be reduced for up to $14,000 of combined income.
Example: If a single person has a net income of $25,000 and $8,000 of that income is earned from employment, benefits will be reduced slightly because that is $2,000 more than the limit.
How to apply?
The application process will begin in June 2025. Follow these steps:
1. You must have a DTC (Disability Tax Credit). If not, apply for it on the CRA portal.
2. File your 2024 income tax return for yourself and your partner.
3. Have the necessary documents ready:
- Social Insurance Number (SIN)
- Proof of DTC approval
- Proof of residence
The application can be made online or through Service Canada. Full details will be provided in June 2025.
Impact on other government benefits?
The good news is that the CDB will not affect other federal benefits such as:
- Canada Child Benefit (CCB)
- Canada Workers Benefit (CWB)
- GST/HST Credit
However, provincial plans may vary, so it is important to check with your provincial government.
Frequently Asked Questions (FAQs)
Q1: What if I don’t have a DTC?
You must first apply for a DTC. Have a doctor fill out Form T2201 and submit it to the CRA.
Q2: Will I get benefits even if I work?
Yes, you will get benefits even if you work. There will be no deduction for earnings up to $10,000 (single) and $14,000 (couples).
Q3: Is this benefit taxable?
No, it is tax-free income.
Q4: How often will payments be made?
Payments will be made every month, starting in July 2025.
Q5: What if my income changes in the middle of the year?
The benefit amount will be based on last year’s income. Benefits may change next year.
Q6: What if the application is rejected?
You can appeal. Full details will be made available in June 2025.
