In a move to support Canadian families facing rising living costs, the federal government has announced that the Canada Child Benefit (CCB) will increase by 2.7% starting in July 2025.
This inflation-indexed adjustment is part of the government’s ongoing effort to ensure that benefit amounts remain aligned with the cost of living.
The Canada Revenue Agency (CRA) confirmed that families with children under six will receive up to $7,997 annually, while those with children aged 6 to 17 will be eligible for up to $6,748 per child.
This is an increase from the current maximums of $7,787 and $6,570 respectively, which were adjusted in July 2024.
“This increase will provide meaningful relief for families as grocery prices, housing, and child care costs continue to climb,” said a spokesperson from the Department of Finance Canada.
Understanding the Numbers
The CCB is a non-taxable monthly payment designed to help eligible families with the cost of raising children. It is based on adjusted family net income (AFNI) and is recalculated each July using the previous year’s income data.
Here’s how the 2025–2026 increase breaks down:
| Child’s Age | Current Max Annual Benefit | New Max (July 2025) | Annual Increase |
|---|---|---|---|
| Under 6 | $7,787 | $7,997 | +$210 |
| 6–17 | $6,570 | $6,748 | +$178 |
In addition, the Child Disability Benefit will rise from $3,322 to $3,411 per year, reinforcing the government’s commitment to supporting families with special needs.
Updated Income Thresholds
Alongside the benefit increases, the income threshold for receiving the maximum CCB will also be adjusted. For the 2025–2026 payment period, families with an AFNI under $37,487 will qualify for the full benefit amount—up from the previous year’s threshold of $36,502.
This means that more low- and moderate-income households will either retain full benefits longer or see smaller reductions as their income rises.
New Support Measures
Another significant policy update will take effect in January 2025: parents who experience the tragic loss of a child will now continue receiving CCB and the Child Disability Benefit for six months following the child’s death, provided the CRA is notified.
This change aims to offer a financial cushion for grieving families, replacing the previous practice where benefits stopped the month after a child’s passing.
Why This Matters
As the Canadian economy navigates inflationary pressures and evolving family dynamics, the CCB remains a cornerstone of the federal government’s social support framework.
The upcoming increase will be especially welcome for families already contending with higher child care fees, education expenses, and housing challenges.
“We know that every dollar counts,” said the CRA representative. “This increase reflects our commitment to providing timely, targeted support for those who need it most.”
What Parents Should Do
To ensure uninterrupted payments and eligibility for the upcoming increase:
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File your 2024 taxes on time — the CRA uses your previous year’s return to determine your CCB.
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Report any changes in your marital status, custody, or number of children to the CRA.
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Use the Child and Family Benefits Calculator to estimate your new benefit amounts.
Conclusion
The 2.7% increase in the Canada Child Benefit, effective July 2025, reaffirms the federal government’s commitment to supporting families during economically uncertain times.
With inflation-adjusted increases and expanded post-tragedy support, the CCB continues to evolve to meet the realities of Canadian households.
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