On July 11, 2025, the Canada Revenue Agency (CRA) began issuing the first of three quarterly payments under the Advanced Canada Workers Benefit (ACWB) for the 2025–26 benefit year. This tax-free, refundable credit is targeted at low- and modest-income workers, offering up to $3,560 annually in much-needed support.
The first instalment, which could be as high as $1,238.99, has already been deposited into eligible Canadians’ bank accounts. This financial support aims to ease the burden of inflation, rising living costs, and wage stagnation among working-class individuals and families.
What Is the Canada Workers Benefit (CWB)?
The Canada Workers Benefit is a federal support program aimed at supplementing the income of individuals and families who are employed but earn low wages. It provides an annual refundable tax credit that’s calculated based on income, family status, and other qualifying conditions.
The CWB consists of two parts:
- Basic amount (available to most eligible workers)
- Disability supplement (for those eligible under the Disability Tax Credit)
The CWB is now distributed through two methods:
- Annual lump sum after tax filing
- Advanced quarterly payments via the Advanced CWB (ACWB) program, giving Canadians earlier access to a portion of their benefits.
Payment Breakdown: How Much Can You Receive?
Here’s how the maximum annual benefit is structured:
| Category | Single | Family |
|---|---|---|
| Basic CWB | $1,590 | $2,739 |
| Disability Supplement | $821 | $821 |
| Total Annual Max | $2,411 | $3,560 |
The ACWB advance allows eligible individuals to receive up to 50% of their annual benefit in quarterly payments, starting with a first payment of up to $603 for singles and up to $1,238.99 for families.
Note that actual payments may vary depending on:
- Adjusted family net income
- Province or territory of residence
- Disability status
- Marital and dependent status
Certain provinces like Quebec, Alberta, and Nunavut have custom income thresholds, impacting benefit amounts.
Key Dates for the 2025–26 Advance Payment Schedule
For those who opted into advance payments through CRA, the ACWB will be distributed in three instalments:
- July 11, 2025
- October 10, 2025
- January 12, 2026
Each payment is deposited directly to the recipient’s bank account based on the 2024 tax return details.
To avoid payment issues, make sure your banking information is current and that your return has been accurately filed.
Who Qualifies for the Canada Workers Benefit?
To receive the CWB or its advance payments, individuals must meet the following eligibility criteria:
- Be a resident of Canada for tax purposes
- Be at least 19 years old (or younger if living with a spouse, common-law partner, or dependent child)
- Have earned eligible working income
- Not be a full-time student for more than 13 weeks in the year (unless they have dependents)
- Have an adjusted net income below thresholds:
- Approx. $36,749 for singles
- Approx. $48,093 for families
For the disability supplement, you must:
- Be eligible for the Disability Tax Credit (DTC)
- Have a valid and approved Form T2201 on file with the CRA
The Benefit of Advance Payments
The Advanced Canada Workers Benefit (ACWB) is designed to give workers earlier access to part of their CWB entitlement—without waiting until tax season.
Up to 50% of your estimated annual benefit is distributed across three quarterly payments, and the remainder is reconciled when you file your 2025 tax return.
What if you’re overpaid?
Most overpayments are forgiven unless significant errors or fraud are involved. If your 2025 income ends up higher than estimated, CRA generally doesn’t demand repayment, making this support both accessible and low-risk.
Why Was the CWB Raised in 2025?
This year’s increase in the CWB comes in response to:
- High inflation
- Rising rent and grocery prices
- Flat wage growth among lower-income workers
- Low uptake of the benefit in previous years
CRA aims to make the benefit more impactful and accessible by increasing advance payment amounts and simplifying the process.
As a result, the 2025 CWB boost is one of the most substantial increases among federal support programs this year.
Maximizing Your Canada Workers Benefit
To make sure you receive the full CWB amount, take the following steps:
- File your 2024 tax return accurately and on time
- Opt in for advance payments during filing or through your CRA My Account
- Update all personal information including:
- Marital status
- Number of dependents
- Residential address
- Check banking info to confirm direct deposit is active and accurate
For those receiving the disability supplement, only one spouse needs to claim the basic amount, but both can claim the $821 supplement if they meet the DTC criteria.
Who Benefits Most from the ACWB?
The ACWB is particularly beneficial for:
- Single parents working part-time or minimum wage jobs
- Couples with children earning a combined modest income
- Low-wage workers with disabilities
- Young adults just starting out in the workforce
This refundable credit can help cover rent, groceries, transit costs, or emergency expenses and is often used to bridge the gap between paycheques.
What Happens If You Miss a Payment?
If you didn’t receive your July 2025 deposit:
- Check your CRA My Account for payment status
- Confirm that your 2024 return has been processed
- Verify banking information and direct deposit enrollment
- Contact CRA support if no issue is visible online
Late tax filing or incorrect data are the most common causes for delayed payments.
FAQs
Q1. Do I need to apply to receive the ACWB deposit?
No. If you filed your 2024 tax return and opted in through CRA My Account, your advance payments are automatic.
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Q2. What if my income increases during the year?
CWB is reconciled when you file your 2025 return. Overpayments are usually forgiven, so you likely won’t need to repay it.
Q3. Can both spouses receive the disability supplement?
Yes. Both can receive the $821 supplement, but only one spouse can claim the basic benefit.
Q4. How many ACWB payments will I receive in 2025–26?
Three—July 11, October 10, and January 12.
Q5. What if I didn’t get my July payment?
Check CRA My Account, ensure your 2024 taxes are filed, and confirm banking details are correct.