Launching in July 2025, the Canada Disability Benefit (CDB) introduces a much-needed monthly payment of $200 (equivalent to $2,400 annually) for eligible low-income Canadians aged 18 to 64 who have been approved for the Disability Tax Credit (DTC).
Applicants who apply before June 30, 2025, and are approved, will begin receiving payments starting July 2025.
What Is the Canada Disability Benefit?
The Canada Disability Benefit is a newly established federal income support program under the Disability Inclusion Action Plan. Its mission is to ease financial burdens and enhance the living standards of working-age Canadians living with disabilities. The benefit provides $200 per month, which will be adjusted annually for inflation. Although it starts in July 2025, those who apply early may receive retroactive payments from June 2025.
Key Features of the Benefit
| Aspect | Details |
|---|---|
| Monthly Payment | $200 per month ($2,400 per year) |
| Inflation Indexing | Adjusted annually |
| Back-Pay | Retroactive from June 2025 |
| Eligible Age | 18 to 64 years |
| Tax Requirement | Must have filed 2024 federal tax return |
| DTC Requirement | Must be approved for the Disability Tax Credit (DTC) |
| Residency | Must be a Canadian tax resident |
Eligibility Criteria for the CDB
To be eligible for the Canada Disability Benefit, applicants must:
- Be between 18 and 64 years old
- Have an approved Disability Tax Credit (DTC)
- Have filed their 2024 federal income tax return
- Be a Canadian resident for tax purposes, including:
- Canadian citizens
- Permanent residents
- Indigenous individuals
- Protected persons
- Temporary residents (living in Canada for at least 18 months)
- Have a family net income within the required thresholds
How Income Impacts Your Benefit
The benefit is income-tested, meaning your adjusted family net income (AFNI) influences the amount you receive. However, some income is exempt:
- Single applicants: First $10,000 is not counted
- Couples: First $14,000 is exempt
Beyond that:
- For every $1 earned above the exemption, the benefit reduces by $0.20
- Full benefit is available up to approx. $23,000 AFNI for singles
- Full benefit is available up to approx. $32,500 AFNI for couples
- At higher incomes, the benefit gradually phases out
Payment Schedule and Application Timeline
The application portal opened on June 20, 2025. Those who apply by June 30 and are approved will start receiving payments in July.
Monthly payments will be made on the third Thursday of each month:
- July 17
- August 21
- September 18
- October 16
- November 20
- December 18
Applicants can choose between direct deposit or cheque, with direct deposit strongly encouraged for quicker access.
How to Apply for the Canada Disability Benefit
Before applying for the CDB, ensure you have an approved DTC. If not, submit CRA Form T2201.
You can apply via:
- My Service Canada Account (MSCA) – recommended for speed
- Phone
- In person at a Service Canada location
If you received a letter from Service Canada, you can use the 6-digit access code for faster application processing. Be ready with your SIN, residency status, and bank details for direct deposit.
Processing times:
- 28 days for standard applications
- 49 days if submitted by a representative
What Can the Benefit Be Used For?
This $200 monthly support is meant to alleviate essential living expenses. Many recipients may use the CDB to cover:
- Rent or housing costs
- Groceries and nutrition
- Transportation
- Healthcare expenses
- Clothing and hygiene products
More than financial relief, this benefit promotes independence and dignity for individuals with disabilities.
Missed the June Deadline? You Still Qualify
If you missed the June 30, 2025 deadline, you can still apply and receive retroactive payments from June 2025, as long as you apply within two years.
Impact on Other Benefits
The Canada Disability Benefit is non-deductible and won’t affect any of your other benefits, including:
- Canada Child Benefit (CCB)
- Guaranteed Income Supplement (GIS)
- Any provincial or federal assistance programs
Processing & Disbursement Timeline
Once your application is approved, you’ll be paid on the third Thursday of the next month. Most applicants can expect payment within 28 days of approval.
Example: If you’re approved in August, your first payment will arrive on September 18.
Why You Should Apply Now
The Canada Disability Benefit is a vital financial resource for Canadians living with disabilities. Applying early ensures you:
- Receive payments sooner
- Gain retroactive benefits
- Secure a consistent monthly income boost
- Maintain eligibility for other benefits
Taking action now means improved economic stability, better quality of life, and long-term security.
Conclusion
The launch of the Canada Disability Benefit in July 2025 marks a transformative step toward financial equality and dignity for disabled Canadians. With a monthly $200 payment, inflation protection, and retroactive support, the CDB is more than just assistance—it’s an investment in empowerment. Apply early, ensure DTC approval, and don’t miss the opportunity to benefit from this vital program.
FAQs
What happens if I apply after June 30, 2025?
You can still apply and will receive back-pay starting from June 2025, provided you apply within 24 months of the program’s start.
Does the CDB affect other federal or provincial benefits?
No. The Canada Disability Benefit is separate and won’t reduce your GIS, CCB, or any other support programs.
How much income can I earn and still receive full benefits?
For singles, full benefit is available with an AFNI of up to $23,000. For couples, the threshold is around $32,500.
Do I need to be approved for the DTC before applying?
Yes. You must be approved for the Disability Tax Credit (DTC) before you can submit your application for the Canada Disability Benefit.
How will I receive the payment?
Payments will be made monthly via direct deposit (preferred) or cheque, on the third Thursday of each month.