In a major financial relief initiative, the Canada Revenue Agency (CRA) has confirmed a $2,000 annual increase to the Child Disability Benefit (CDB), effective July 2025. This enhanced benefit, paid monthly as an extra $166, will help families cope with rising caregiving and medical costs for children with disabilities.
The move underscores the federal government’s commitment to accessibility, inclusion, and targeted support for vulnerable families raising children with severe or prolonged disabilities.
What Is the Child Disability Benefit (CDB)?
The Child Disability Benefit (CDB) is a tax-free monthly payment designed to support families who are raising a child under the age of 18 with a severe and prolonged mental or physical impairment. It is paid as a supplement to the Canada Child Benefit (CCB) and is calculated based on family income and eligibility for the Disability Tax Credit (DTC).
Starting July 2025, the CRA will automatically increase the CDB by $2,000 per child, making it easier for caregivers to handle therapy costs, assistive devices, and other specialized needs.
Monthly Payment Breakdown: How the $2,000 Increase Works
Here’s how the benefit enhancement will be distributed:
| Detail | Amount / Information |
|---|---|
| Total Increase Amount | $2,000 annually |
| Monthly Increase | $166 per month |
| Start Date | July 2025 |
| Payment Method | Included automatically in CCB |
| Application Needed? | No |
| Frequency | Monthly (July 2025 – June 2026) |
This predictable monthly addition allows families to better manage recurring expenses, such as occupational therapy, tutoring, respite care, or specialized equipment.
Who Is Eligible for the Increased CDB in 2025?
To qualify for the $2,000 CDB increase, families must meet the CRA’s updated eligibility requirements:
- Residency: Both the caregiver and child must reside in Canada for tax purposes
- Age Requirement: The child must be under 18 years of age
- Disability Status: The child must have a valid Disability Tax Credit (DTC) certificate
- Income Threshold: Payments are based on Adjusted Family Net Income (AFNI) from the 2024 tax return
- Tax Compliance: 2024 income taxes must be filed on time
If a DTC certificate is newly approved in 2025, the family will automatically qualify for the increase—no new application is necessary.
How to Ensure You Receive the Full $2,000 Benefit
To avoid missing out on the enhanced benefit, families should take the following steps before July 2025:
- File your 2024 income tax return on time
- Ensure your child’s DTC certificate is valid through 2025
- Update CRA with any changes to marital status, custody arrangements, address, or direct deposit information
- Log in to CRA My Account to verify eligibility, view upcoming payments, and track benefit status
Payments will continue using the same direct deposit or cheque method already in place for your existing CCB.
How This Increase Supports Families in 2025
The $2,000 increase to the CDB comes at a time when costs for healthcare, specialized education, and adaptive equipment are rising steadily. This boost will provide families with:
- Financial room to schedule consistent therapy appointments
- Funds for communication devices and mobility aids
- Assistance with transportation and home accessibility upgrades
- Support for educational tools and tailored learning services
In short, this benefit increase helps caregivers manage daily challenges while planning for their child’s long-term development.
Provincial and Territorial Add-Ons to the CDB
Receiving the Child Disability Benefit can also open the door to additional provincial or territorial assistance, such as:
- Respite care subsidies
- Housing and rent support
- Education grants for children with learning disabilities
- Funding for assistive and adaptive technologies
Families are encouraged to contact their local disability support offices to understand how the federal CDB increase may impact their eligibility for regional programs.
CRA’s New “My Account” Dashboard Launching July 2025
To help families track and manage benefits more efficiently, the CRA is set to launch an enhanced My Account dashboard in July 2025. This redesigned tool will enable caregivers to:
- View real-time payment updates
- Track Disability Tax Credit status
- Update family and financial details instantly
- Receive alerts on document deadlines and compliance checks
This digital upgrade offers families a faster, paperless, and more transparent way to stay on top of their benefits and reduce administrative delays.
No Separate Application Required
If your child already qualifies for the Child Disability Benefit, you will automatically receive the $166/month increase beginning in July 2025.
There’s no need to reapply—the CRA will determine eligibility based on:
- Your 2024 tax return
- Your child’s valid DTC certificate
- Current information in your CRA file
This streamlined process ensures a hassle-free experience, giving parents more time to focus on caregiving instead of paperwork.
What Families Should Do Now
To prepare for the July 2025 rollout, here’s a step-by-step summary:
| Step | Why It Matters |
|---|---|
| File your 2024 tax return on time | CRA calculates eligibility based on this return |
| Confirm your child’s DTC status | DTC must be valid for the 2025 benefit year |
| Update CRA with personal changes | Prevent delays or misdirected payments |
| Monitor CRA “My Account” platform | Track real-time status, updates, and alerts |
FAQs
Q1. Do I need to apply for the $2,000 CDB increase?
No. If your child has an approved Disability Tax Credit and your 2024 taxes are filed, the CRA will apply the increase automatically.
Q2. When will the increase begin?
Payments start in July 2025, and the $2,000 increase will be split into $166 monthly instalments.
Q3. What if my child’s DTC was approved recently in 2025?
You will still qualify for the full increase. No separate application is required—the CRA will handle the adjustment.
Q4. How do I check if my DTC is still valid?
Log in to CRA My Account or contact CRA to verify your DTC status and renewal requirements.
Q5. Will this increase affect my other benefits?
No. The CDB is a non-taxable supplement and does not reduce or replace other benefits like the Canada Child Benefit or GST/HST credits.