Great news for Canadians with disabilities—the long-anticipated Canada Disability Benefit (CDB) officially begins monthly payments of $200 from July 2025.
This new support initiative from the federal government targets low-income, working-age adults with disabilities to reduce poverty and ensure financial security.
Administered by Service Canada, the benefit falls under the Disability Inclusion Action Plan, signaling a historic advancement in disability support.
Background and Launch
Initially proposed in 2020 and passed into law in June 2023, the Canada Disability Benefit Act laid the groundwork for this new program.
Final regulations were adopted in May 2025, with the application process commencing on June 20, 2025.
The first monthly payments are being issued in July 2025, with retroactive eligibility for up to 24 months.
Eligibility Criteria for the Canada Disability Benefit
To receive the benefit, applicants must meet strict eligibility requirements:
- Age: 18 to 64 years old (applications allowed from age 17½)
- Disability Tax Credit (DTC): Must have a valid DTC certificate
- Tax Filing: Must have filed 2024 federal income tax returns (applicant and spouse/partner)
- Residency: Must be a Canadian resident (citizens, permanent residents, protected persons, Registered Indians, or long-term temporary residents)
- Incarceration Clause: Not eligible during imprisonment for two years or more (except first and last month)
How Much Will You Receive?
The maximum monthly payment is $200 or $2,400 annually. The actual benefit amount is income-tested and indexed to inflation from 2026.
Canada Disability Benefit Payment
| Category | Income Threshold | Reduction Rate | Disqualification Limit |
|---|---|---|---|
| Single Individual | $23,000 | 20¢ per $1 over threshold | $45,000 |
| Single (with $10K working income) | $33,000 | 20¢ per $1 over threshold | $45,000 |
| Couple (one partner eligible) | $46,500 | 20¢ per $1 over threshold | $58,500 |
| Couple (both partners eligible) | $46,500 combined | 10¢ per $1 over threshold | $70,500 |
Note: Income exemptions apply only to working income, not other income sources.
How to Apply for the Canada Disability Benefit
Applications can be made through three channels:
- Online via the official Service Canada portal
- In-person at Service Canada Centres
- Telephone via toll-free support
Documents Required:
- Valid Social Insurance Number (SIN)
- Confirmation of 2024 tax filing
- Disability Tax Credit (DTC) approval
- Bank details for direct deposit
- 2024 Notice of Assessment (line 23600 – Net Income)
Pre-approved DTC holders will receive a notification letter with a unique application code.
Federal Budget and Economic Impact
The federal government has committed $6.1 billion over six years (2025–2030) for the CDB and earmarked $1.4 billion annually beyond that.
This initiative aims to support over 600,000 working-age adults with disabilities, focusing on long-term poverty alleviation.
What Should You Do Right Now?
To avoid delays in receiving the benefit, eligible Canadians should:
- Ensure 2024 income tax returns are filed
- Apply for the Disability Tax Credit if not yet approved
- Confirm valid SIN and banking details
- Watch for application letters or apply online
- Save a copy of the Notice of Assessment
Even if someone misses the initial rollout, they can still claim retroactive payments backdated up to 24 months from July 2025.
The launch of the Canada Disability Benefit is a transformative moment for working-age Canadians with disabilities.
Offering up to $200 per month, this program provides much-needed financial assistance to individuals and families struggling with additional expenses and income limitations.
With a solid infrastructure, generous budget, and inflation-indexed future, the CDB is a bold step toward economic equality and social inclusion.
Eligible individuals are urged to act quickly to ensure they don’t miss out on this important support.
FAQs
Can I still apply if I don’t have a DTC approval yet?
Yes, but you must first apply for and receive DTC approval before applying for the Canada Disability Benefit.
Will this benefit affect other government assistance programs?
The benefit is designed to complement existing programs and is non-taxable, so it should not reduce other federal supports.
Is the $200 amount fixed for everyone?
No, the actual amount varies based on your income and household structure, though $200 is the maximum monthly benefit.