Will Canada’s Child Benefit Increase in 2025? Let’s Check

Will Canada's Child Benefit Increase in 2025? Let's Check

Canadian families relying on the Canada Child Benefit (CCB) program are set to receive higher payments starting this Friday. These increases are tied to inflation, ensuring families can better manage the rising costs of raising children. Here’s everything you need to know about the enhanced benefits for the 2024-2025 benefit year.

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Significant Increases in Canada Child Benefit Payments

New Payment Rates for 2024-2025

Starting this year, eligible families can look forward to the following enhanced payments:

  • For children under six years old: Families will receive $648.91 per month, totaling $7,787 annually. This represents a $350 increase from the previous year’s maximum of $7,437.
  • For children aged six to 17: Families will receive $547.50 per month, totaling $6,570 annually. This is up from last year’s maximum of $6,275.

These changes reflect a 4.7% rise in benefits, providing extra financial support for low- and middle-income families.

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Adjustment Based on Inflation

The Employment and Social Development Canada (ESDC) announced that the benefit is adjusted every July in line with the Consumer Price Index (CPI). This ensures families are shielded from the impact of inflation and can maintain their purchasing power.

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Key Features of the Canada Child Benefit Program

Shared Custody Arrangements

For families where custody is shared—with a child spending 40-60% of their time at each parent’s home—the Canada Revenue Agency (CRA) splits the payment equally. Each caregiver receives 50% of the benefit.


Tailored for Low- and Middle-Income Families

Introduced in 2016, the CCB aims to alleviate the financial burden of raising children. It is available to Canadian citizens, permanent residents, and refugees who are primary caregivers for children under 18.

  • The benefit is non-taxable, ensuring families receive the full amount without deductions.
  • Payments decrease for families with net incomes exceeding $36,502, depending on the number of eligible children.

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Eligibility and Disability Tax Credit

The CRA also factors in children’s eligibility for the disability tax credit, which may increase payments for families caring for children with disabilities.


Importance of Tax Filing

To continue receiving the CCB, families must file their tax returns annually, regardless of whether they earn income or their income is tax-exempt. The federal government halts payments for caregivers who fail to file their returns.


Planning Your Benefits

Families can estimate their potential payments using the CRA’s online child and family benefits calculator. The calculator provides an easy way to determine eligibility and projected payments based on net income and the number of children.


Why the Canada Child Benefit Matters

The CCB plays a critical role in supporting families grappling with the financial demands of raising children. As inflation and living costs continue to rise, the government’s commitment to adjusting the CCB ensures Canadian families remain resilient and supported.

About Sophie Wilson 751 Articles
Sophie Wilson is a finance professional with a strong academic background, having studied at the University of Toronto. Her expertise in finance is complemented by a solid foundation in analytical and strategic thinking, making her a valuable asset in the financial sector.

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