As part of its broader Disability Inclusion Action Plan, the Government of Canada is launching the long-anticipated Canada Disability Benefit (CDB). This new financial support targets low-income Canadians with disabilities, offering up to $2,400 annually — or $200 monthly — beginning in July 2025.
The application window officially opens on June 20, 2025, and those approved by June 30 will receive their first payment in July. Designed to reduce poverty and improve quality of life, this benefit is expected to positively impact over 600,000 working-age Canadians.
Program Structure and Payment Details
The Canada Disability Benefit supplements existing supports by offering a consistent monthly income stream to those who qualify. According to the government, the program will start with:
| Benefit Period | Monthly Maximum | Annual Maximum | Inflation Adjustment |
|---|---|---|---|
| July 2025 – June 2026 | $200 | $2,400 | Yes (upward only, CPI-indexed) |
This income supplement will be indexed to inflation, ensuring the payment value grows over time. However, it will not decrease if inflation rates fall.
Application Requirements and Eligibility Criteria
To apply for the Canada Disability Benefit, you must meet the following eligibility criteria:
- Be between 18 and 64 years old
- Be a Canadian resident, permanent resident, or eligible temporary resident
- Be approved for the Disability Tax Credit (DTC)
- Have filed a 2024 income tax return
- If applicable, your spouse or partner must also file their 2024 return
This benefit is income-tested, which means higher-income individuals or households may receive reduced amounts or become ineligible. While specific income thresholds are still being finalized, the CRA will assess eligibility based on 2024 income levels and DTC approval.
How to Apply for the Benefit?
Starting June 20, 2025, applications can be submitted through the following three channels:
- Online via the My Service Canada Account (MSCA) – fastest and most recommended
- By phone with guided assistance from Service Canada
- In person at any Service Canada office
Some individuals will also receive notification letters with a unique application code to streamline the process. However, receiving a letter is not required to apply.
What You Need to Prepare Before Applying
To avoid delays, it’s recommended that applicants gather the following information before June 20:
- Social Insurance Number (SIN)
- 2024 tax return with net income (Line 23600)
- Bank account details for direct deposit
- Mailing address
- Disability Tax Credit (DTC) approval documentation
Early and accurate submissions will ensure faster processing and on-time payments.
Who Will Benefit from the CDB?
The Canada Disability Benefit is primarily aimed at low-income individuals with disabilities who are underrepresented in federal support programs. According to recent data, Canadians with disabilities face poverty rates twice as high as those without disabilities.
The CDB will:
- Help cover basic living expenses
- Supplement existing provincial disability programs
- Co-exist with other federal benefits like the Canada Workers Benefit, GST/HST Credit, and more
Coordination with provinces aims to avoid clawbacks, ensuring this benefit remains complementary and not a replacement.
Timeline and Retroactive Payments
Those who apply and are approved by June 30, 2025, will start receiving payments in July. Late applicants may still receive retroactive payments, provided they apply within two years and meet eligibility requirements for the missed months.
This flexible system ensures that no one is penalized for late awareness or processing delays.
Summary of Key Details
| Detail | Information |
|---|---|
| Application Opens | June 20, 2025 |
| First Payment | July 2025 |
| Monthly Payment Amount | $200 |
| Annual Payment | Up to $2,400 |
| DTC Approval Required | Yes |
| Income Tax Filing Required | 2024 return must be filed |
| Payment Adjustment | Indexed to inflation (upward only) |
| Application Channels | Online, phone, in-person |
| Retroactive Payments Available | Yes, up to two years |
Next Steps for Canadians
To ensure a successful application, individuals should:
- Confirm or apply for the Disability Tax Credit (DTC)
- File their 2024 tax return
- Watch for any Service Canada notification letters
- Be ready to apply starting June 20, 2025
- Contact Service Canada with questions or for application assistance
This benefit represents a major step forward in Canada’s efforts to create a more inclusive and equitable society. Though modest in amount, it’s foundational — with future increases and program expansions expected based on advocacy input and economic review.
The Canada Disability Benefit offers much-needed financial support to low-income Canadians with disabilities. With $200 monthly payments starting in July 2025, eligible individuals should act now to ensure timely approval. This benefit is a step toward economic inclusion and financial independence for thousands across the country.
FAQs
When does the Canada Disability Benefit application open?
Applications open on June 20, 2025, and those approved by June 30 will receive their first payment in July.
What is the maximum benefit amount under CDB?
Eligible individuals can receive $200 per month, or $2,400 annually, indexed to inflation.
Is DTC approval mandatory to apply?
Yes, applicants must be approved for the Disability Tax Credit (DTC) before applying for the Canada Disability Benefit.