Adrian
Canadian families are now receiving higher Canada Child Benefit (CCB) payments as inflation indexation officially took effect in July 2025.
The federal government, through the Canada Revenue Agency (CRA), announced a substantial boost in the maximum annual amounts provided under the CCB.
This move is part of its commitment to support low- and moderate-income families amid rising living costs.
What’s New in the July 2025 Canada Child Benefit Update?
Starting from July 2025, eligible families will see an increase of up to $210 per child under six and $178 per child aged six to 17 in their annual payments.
Here are the updated maximum CCB amounts for the 2025–2026 benefit year:
| Child’s Age | Previous Maximum (2024) | New Maximum (2025) | Increase |
|---|---|---|---|
| Under 6 years | $7,787 | $7,997 | $210 |
| 6 to 17 years | $6,570 | $6,748 | $178 |
These changes are applicable to families with an adjusted net income under $37,487. For families earning more, the benefit gradually decreases based on their income bracket.
How CCB Is Calculated and Reduced Based on Income
The CCB is a tax-free, income-tested benefit designed to provide monthly financial support. It is indexed to inflation annually every July using data from the Consumer Price Index (CPI).
The CRA explains that this adjustment ensures the benefit keeps pace with the cost of living.
Here is how benefit reductions are applied based on income:
- Full amount for income under $37,487
- 7% reduction on income between $37,487 and $81,222
- 3.2% reduction for income between $81,223 and $231,222
- No benefit for income above $231,222
For instance, in a two-parent household earning $134,600, which is the average reported by Statistics Canada in 2023, the annual CCB payment would be approximately $3,227 per child under six.
Impact on Families and Childcare Costs
In high-cost provinces like Ontario, subsidized child care is capped at $22 per day, resulting in an annual expense of $5,544.
With the revised CCB amount of $7,997, 58% or more of childcare expenses can be covered by the benefit alone for low-income families.
However, limited availability of subsidized childcare spaces, especially for infants under 18 months, continues to be a challenge despite efforts under the Canada-Wide Early Learning and Child Care initiative introduced in 2021.
Who Can Apply for the Canada Child Benefit?
- The applicant must be primarily responsible for the care and upbringing of the child.
- Parents with shared custody receive half of the benefit each.
- Monthly payments are based on the number of eligible children, their ages, and the family’s prior-year income.
With inflation continuing to affect household budgets, the Canada Child Benefit adjustment in July 2025 provides much-needed financial relief.
Families can now count on a higher annual payout, helping them manage the rising costs of child care and daily essentials.
By indexing the benefit to inflation each year, the federal government is ensuring that Canadian families receive predictable, consistent support to maintain their quality of life.
FAQs
How do I know if I’m eligible for the full Canada Child Benefit?
You must have an adjusted family net income below $37,487 and meet CRA residency and care requirements to receive the maximum benefit.
When will I receive the updated CCB payments?
The revised monthly payments started in July 2025 and continue through June 2026, based on your 2024 tax return.
What happens if I share custody of my child?
If both parents share custody equally, each parent receives 50% of the benefit they would otherwise be entitled to.