The Canada Revenue Agency (CRA) has announced good news for families feeling the pinch of inflation: the Canada Child Benefit (CCB) is increasing in 2025. This annual adjustment, tied to inflation, provides a welcome financial boost to households raising children across Canada.
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Here’s everything you need to know about the updated CCB amounts and how they can impact your family’s finances.
How Much More Can You Expect in 2025?
Starting July 2025, the maximum annual CCB amount will increase by 2.7%, reflecting the latest inflation adjustments.
- Children under 6 years old: Maximum benefit increases to $7,997, up by $210 compared to 2024.
- Children aged 6 to 17 years old: Maximum benefit rises to $6,748, up by $178.
While this increase is more modest than 2024’s boost due to last year’s higher inflation, it still offers meaningful support for parents managing the rising costs of raising kids.
When Will You See the Increase?
The updated benefit amounts will begin with the July 2025 installment, which marks the start of the new benefit year. Payments will be calculated based on your 2024 tax return, so it’s crucial to file on time to avoid delays.
Higher Income Thresholds in 2025
In addition to the increased benefit amounts, the Adjusted Family Net Income (AFNI) threshold — where the CCB starts to phase out — is also increasing:
- 2024 threshold: $36,502
- 2025 threshold: $37,487
This adjustment means:
- More families may qualify for the maximum benefit.
- Families earning above the threshold could see a smaller reduction in their payments.
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What is the Canada Child Benefit (CCB)?
The CCB is a tax-free payment designed to support parents or guardians raising children under 18. The CRA determines your payment amount based on:
- Your family’s Adjusted Family Net Income (AFNI) from the previous tax year.
- The number of children in your household.
- The ages of your children.
If your income is below the threshold, you’ll receive the maximum benefit. Families earning above the threshold will see payments gradually taper based on their income.
Additional Support for Families with Children with Disabilities
Families with children who qualify for the Disability Tax Credit can expect an increase in the Child Disability Benefit in 2025. This supplemental payment, issued alongside the CCB, offers up to $3,411 annually per eligible child.
- Income phase-out threshold: Rising to $81,222 in 2025.
What Should Families Do Now?
To ensure you receive the updated CCB amounts on time:
- File your 2024 tax return early to avoid payment delays.
- Confirm your family’s income and child information is accurately reported to the CRA.
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Keep an eye on your bank account starting July 2025 for the new CCB amounts. This annual inflation adjustment ensures that Canadian families continue to receive essential support to help ease the financial pressures of raising children.
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