Estimated reading time: 6 minutes
Understand the Canada Disability Benefit Act and its role in assisting Canadians facing disability challenges with direct financial aid.
With the cost of living increasing and an affordable housing crisis in Canada, those people living with disabilities need even more financial support to remove barriers that contribute to the growing poverty rate.
As mentioned in the 2022 Canadian Survey on Disability, 27% of Canadians aged 15 years and older, or 8.0 million people, had one or more disabilities that limited them in their daily activities.
Did you know that pain-related disabilities remain the most common, affecting 62% of those with disabilities, while mental health-related disabilities witnessed the most significant growth, moving from 33% in 2017 to 39% in 2022, reflecting broader trends in declining mental health indicators?
According to Statistics Canada‘s 2022 Canadian Survey on Disability (CSD), over 8 million Canadians 15 years old and above are living with a disability that hinders their daily activities.
In 2021, the Angus Reid Institute surveyed Canadians, asking them if they supported the Canada Disability Benefit, with 81% saying yes.
Beginning June 20, 2025, those who qualify for the Canada Disability Benefit program can apply via the online application portal, in person at a service centre, or over the telephone.
Understanding The Canada Disability Benefit
Service Canada will administer the Canada Disability Benefit, Bill C-22.
Canadians living with disabilities who are approved will receive direct financial support, with the first payment for the CBD beginning on July 20, 2025.
Qualifying For The Disability Benefit In Canada
Do I qualify for the Canada Disability Benefit?
If you are between 18 and 64 years old, have been approved for the Disability Tax Credit (DTC) (this is a credit, not a benefit), and meet other criteria on June 20, 2025, you can apply for the Canada Disability Benefit.
Those who qualify for the new benefit will receive a letter from Service Canada in June with a code and instructions on how to apply for the CDB.
If you are unsure if you qualify for the disability tax credit, talk to your doctor.
According to the Canada Revenue Agency (CRA), you may qualify for the DTC if you need assistance with any of the following:
- walking
- mental functions
- dressing
- speaking
- eliminating (bowel and bladder functions)
- feeding
- hearing
- vision
- cumulative (restrictions in more than one basic activity of daily living)
- life-sustaining therapy
For example, our son has Autism and ADHD, and he qualified for the DTC under mental functions.
Due to needing assistance eating, getting dressed, feeding, and cumulative restrictions because of an incurable neurological disease, Mrs. CBB receives the DTC.
Unfortunately, she will not qualify for the CDB due to our net income being over the threshold.
Other qualifications for the Canada Disability Benefit
- You or your partner (if applicable) must have filed your 2024 Income Tax Return.
- You must be a Canadian Resident
- Permanent resident of Canada
- A resident or entitled to be listed under the Indian Act
- Protected person
- Temporary resident who has lived in Canada for the last 18 months
If you’re under 18, you may be able to apply early, or if you’re over 65, you may also qualify for up to 24 months of back pay.
However, if you become incarcerated in a federal penitentiary for up to two years or more, you’ll be ineligible, except for the first and last month of your stay.
How Much Is The Canada Disability Benefit?
Based on your income and other factors, those who qualify for the CBD will receive $200 monthly up to a maximum of $2400 yearly.
Service Canada will adjust the monthly amount yearly to update for the cost of inflation, which means it will increase over time but never decrease.
For the July 2025 – 2026 payment period, your 2024 adjusted family Net Income for the 2024 tax year will be used to calculate the amount you receive.
The amount you receive is based on your family’s adjusted net income using the following equation:.
Using your tax return net income on line 23600 and your spouse/partner *if applicable, minus any Universal Childcare Benefit (UCCB), plus any Registered Disability Savings Plan (RDSP).
The net income also includes any UCCB or RDSP you repaid for yourself and a spouse/partner (if applicable).
Based on the above, you will earn either the maximum $200 monthly or an adjusted amount.
How Your Income May Affect Your Benefit
However, your income may affect your benefit amount based on the following scenarios;
- Being married, having a partner, living common-law, or being single all affect the amount you receive.
- Whether you or your spouse, common-law partner (if applicable), earns income from employment, self-employment, or taxable scholarships.
- Whether you and your partner are both receiving the benefit.
When calculating your benefit, Service Canada uses the working income exemption, which means that if you have a certain amount of income, it will be excluded from employment, self-employment, and taxable scholarships.
However, if you earn more than the working income exemption, that doesn’t mean that your benefit will be reduced.
If you are single, up to $10,000 of working income will be exempt when calculating your benefit. If you have a spouse or common-law partner, up to $14,000 of combined working income will be exempt.
Canada.ca- Canada Disability Benefit
Applying for the Canada Disability Benefit
If you qualify for the Canada Disability Benefit, you will receive a letter in June with a unique code about how to apply.
You can estimate your Canada Disability Benefit amount using the Canada.ca free calculator using your completed 2024 income tax return.
Don’t spend money before you find out exactly how much you are getting.
Remember, an estimate can increase or decrease based on facts and information.
Use the calculator to give you some idea of what you stand to earn monthly.
On June 20, 2025, have your information ready; this is the day you can begin applying for the Canada Disability Benefit program.
What You’ll Need To Apply
Below is the information you need to apply for the Canada Disability Benefit.
Get ahead of the process and set aside the documents below so you’re prepared on application day.
- Social Insurance Number
- Direct Deposit Information
Suppose you do not receive a letter from Service Canada and feel you qualify. In that case, you can still apply by additionally providing your address and net income (line 23600) from your 2024 Notice of Assessment (NOA).
Don’t Guess If You Qualify- Find Out For Sure
For anyone who cannot locate or is missing their 2024 NOA, you can go to your CRA online portal and print a copy or call to have them mail you a copy.
Your notice of assessment (NOA) is an evaluation of your tax return that the Canada Revenue Agency sends you every year after you file your tax return.
The NOA includes the date we processed your tax return, and the details about how much you may owe, or get as a refund or credit.
Government Of Canada-Canada.ca
The worst that can happen is that the CRA says no, but at least you’ll know for sure.
If you have any other questions, visit Canada.ca; this is not an official document but my interpretation of the program.
Discussion: Do you feel that all people with disabilities who qualify for the DTC should have received the CDB?
Please leave your comments below. I appreciate any support you may give by sharing and liking this post.
Mr. CBB
