The new Canada Disability Benefit launches soon — Here's everything you need to know

What is the Canada Disability Benefit?

The Canada Disability Benefit (CDB) is a brand-new monthly payment from the federal government that gives direct financial support to low-income Canadians with disabilities.

According to the feds, it's designed for adults aged 18 to 64 who meet certain eligibility criteria — and it's meant to help reduce poverty and promote financial independence.

This new disability benefit is a major part of Canada's Disability Inclusion Action Plan. The idea was first floated by Justin Trudeau's government in 2020, and after years of consultations, regulatory changes and legislative steps, it's finally launching in 2025.

The program is administered by Service Canada, and while the benefit technically begins this month (June 2025), the actual payments will start rolling out in July.

More about the CDB

Who is eligible for the new Canada Disability Benefit?

There are a few boxes you'll need to check in order to be eligible for the CDB. You must:

• Be between 18 and 64 years old
• Have been approved for the Disability Tax Credit (DTC)
• Have filed your 2024 federal income tax return
• Be a Canadian resident for tax purposes
• Be a Canadian citizen, permanent resident, protected person, individual registered under the Indian Act or a temporary resident who has lived in Canada for at least the last 18 months

There are also rules around incarceration — if you're serving a federal sentence of 2 years or more, you're not eligible during that time (except for the first and last month of your sentence).

More about CDB eligibility

How to apply for the Canada Disability Benefit

Applications for the Canada Disability Benefit are set to open sometime this month — but as of the time of publication, the exact launch date hasn't been announced. That said, you can still do a few things now to get yourself ready:

• Make sure you have a valid Social Insurance Number (SIN) — If you don't know your SIN or don't have one yet, you can contact Employment and Social Development Canada to retrieve yours or apply for one.
• File your 2024 federal tax return, if you haven't already
• Apply for the Disability Tax Credit (DTC) if you haven't been approved yet — it's a must-have for this benefit, and you can find information on the DTC here.

Once the application portal goes live, the government will release full instructions on how to apply.

How much is the Canada Disability Benefit?

The maximum amount you can get from the CDB is $200 per month, or $2,400 per year. This amount will be adjusted each year to keep up with inflation, so it's expected to rise over time.

But here's the catch — this is an income-tested benefit, which means the amount you receive depends on your adjusted family net income. Here's how it works:

• If you're single:
  • If your income is under $23,000, you'll get the full $200 per month.
  • If you earn a working income, up to $10,000 of that is also exempt, meaning you can make up to $33,000 and still get the full amount, as long as at least $10,000 of it is from employment.
  • For every dollar of income you make over this threshold, your annual benefit will be reduced by 20 cents. This means once your income hits $45,000 per year, you no longer qualify for a payment.
• If you're part of a couple and only one of you qualifies:
  • Your household income needs to be under $32,500 (after subtracting up to $14,000 in working income) to receive the full $200 per month.
  • For every dollar of income you or your spouse make over the threshold, your annual benefit will be reduced by 20 cents. Therefore, if your family income is $58,500 or more, you won't receive a payment.
• If you and your spouse or partner both qualify:
  • You both get the full benefit ($200 per month each) if your household income is under $32,500, plus up to $14,000 in working income.
  • For every dollar of family income above the threshold, your annual benefit decreases by 10 cents, meaning neither of you will receive a payment once your combined income hits $70,500.

More about CDB amounts

When will the new Canada Disability Benefit begin?

The CDB program officially kicks off this month, and eligible Canadians should see their first payment as soon as July. Applications are expected to open sometime in June 2025, and once approved, eligible Canadians will start receiving payments the following month.

Here's what you can do right now to get ready:

• Know your SIN: You'll need your Social Insurance Number to apply.
• File your taxes: You and your spouse or partner (if you have one) must have filed your 2024 federal tax returns.
• Get your DTC approved: If you haven't applied for the Disability Tax Credit yet, you can do so anytime throughout the year — no need to wait for next tax season!

If you don't get your application in on time, don't worry! You can receive back payments for up to 24 months before your application is received (dating back to the start of the benefit in July 2025, of course).

This means you'll have up to two years to submit your application without missing out on any money you could have already been eligible for as of next month.

More about the CDB