As inflation continues to impact household budgets, there’s some good news for Canadians in 2025. The federal government is boosting several recurring benefit payments, putting more money into the pockets of eligible individuals and families. These changes, driven by a 2.7% inflation adjustment, apply to everything from child benefits to pensions.
If you’re wondering how these updates will affect your finances, keep reading for a detailed breakdown of the most important benefit increases for 2025.
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GST/HST Credit
The GST/HST Credit is a tax-free quarterly payment that helps low- and modest-income Canadians offset sales taxes. In 2025, the maximum payment amounts are increasing:
- Single adults: Up to $533 (up from $519 in 2024).
- Couples: Up to $698, with an additional $184 per child.
- Families of four: Up to $1,066 annually or $266.50 quarterly.
Income thresholds are also rising slightly, with the phase-out threshold starting at $45,521. These changes take effect in July 2025, and payments will be based on your 2024 tax return.
Canada Child Benefit (CCB)
The Canada Child Benefit (CCB) is a tax-free monthly payment aimed at easing the costs of raising children under 18. For 2025:
- Children under 6 years old: Maximum annual benefit increases to $7,997 (up $210).
- Children aged 6–17: Maximum annual benefit rises to $6,748 (up $178).
These increases will appear in payments starting July 2025 and are determined based on your 2024 adjusted family net income (AFNI).
Child Disability Benefit (CDB)
If you’re caring for a child with a severe and prolonged disability, the Child Disability Benefit (CDB) provides additional tax-free financial support:
- Maximum annual benefit increases to $3,411 per child (up from $3,322 in 2024).
- Phase-out income threshold rises to $81,222.
The updated amounts take effect with the July 2025 payments, based on your 2024 tax return.
Canada Workers Benefit (CWB)
The Canada Workers Benefit (CWB) is a refundable tax credit that supports lower-income working Canadians. Unlike most benefits, the CWB’s annual increase reflects the previous year’s inflation rate (4.7% in this case):
- Singles without children: Up to $1,590 (up from $1,518).
- Families: Up to $2,739 (up from $2,616).
- Disability supplement: Increases to $821 (up from $784).
Income thresholds are also rising:
- Singles: Start phasing out at $26,149.
- Families: Start phasing out at $29,833.
These changes take effect with your 2024 tax return, with payments starting mid-2025.
Old Age Security (OAS)
The Old Age Security (OAS) pension provides financial support to Canadians aged 65 and older. While OAS amounts are reviewed quarterly, here’s what you can expect for January 2025:
- Aged 65–74: Maximum monthly amount remains $727.67.
- Aged 75 and older: Maximum monthly amount remains $800.44.
The repayment income threshold is increasing to $93,454 (up from $90,997), allowing more retirees to keep their full pension.
Canada Pension Plan (CPP)
The Canada Pension Plan (CPP) offers monthly retirement, disability, and survivor benefits. For 2025:
- Maximum monthly retirement pension at age 65 increases to $1,433 (up from $1,364.60).
- Most new beneficiaries, however, receive an average of $808.14 per month.
These increases reflect the federal government’s ongoing effort to adjust CPP payments in line with inflation.
Veteran Disability Pension
The Veteran Disability Pension provides lifetime monthly payments to veterans with service-related disabilities. In 2025:
- Class 1 (highest disability rating): Maximum monthly payment increases to $3,444.59 (up from $3,357.30).
- Other disability classes and dependent benefits are also rising proportionally.
These changes are effective starting January 2025, ensuring better financial support for veterans and their families.
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What Do These Increases Mean for You?
With these adjustments, eligible Canadians can expect more financial breathing room in 2025. From families raising children to retirees on fixed incomes, these boosts aim to help Canadians better cope with rising living costs.
To ensure you receive the maximum benefits, file your 2024 tax return on time, keep your family information updated, and watch for payment updates starting mid-2025.
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