The Canadian government has officially launched a new federal assistance program aimed at supporting low-income adults with disabilities. Known as Canada’s $200 Monthly Disability Benefit, this initiative provides tax-free financial aid to eligible citizens aged 18 to 64 years. If you are already approved for the Disability Tax Credit (DTC) and have filed your 2024 tax return, you could start receiving payments as early as July 2025.
Key Dates: When Do Applications and Payments Start?
Applications for this monthly disability benefit opened on June 20, 2025. Those who apply and receive approval by June 30, 2025 will be eligible to receive their first payment in July 2025. Importantly, late applicants will not lose their benefits—payments will be retroactively calculated from June, though processing may take longer.
What’s Included: $200 Tax-Free Every Month
Eligible recipients will receive a maximum of $200 per month, amounting to $2,400 annually, entirely tax-free. The benefit will also be adjusted annually based on inflation, helping recipients maintain purchasing power. If a person’s income exceeds a certain threshold, their benefit amount may be reduced. Notably, every Canadian province and territory—except Alberta—has agreed not to reduce other disability benefits in response to this new payment.
Simple Application Options: Online, Phone, or In-Person
There are three easy ways to apply for this benefit:
- Online through the federal portal
- Over the phone with Service Canada
- In-person at any Service Canada Centre
Those who receive a special letter in June 2025 containing a unique code can use it to apply more quickly. But even without the letter, you can apply using your Social Insurance Number (SIN), 2024 income information, and banking details.
Government Perspective: Empowerment, Not Dependency
Senior leaders within the federal government have called this plan a landmark moment for disability inclusion. Minister Patty Hajdu praised the tireless efforts of disability rights activists, noting that this benefit is designed to empower individuals, not create lifelong dependency. The goal is to improve financial stability and encourage independence through a blend of government aid and personal income.
Investment and Reach: $61 Billion for Inclusion
The government plans to invest $61 billion over the first six years, followed by $14 billion annually in ongoing support. The program is projected to directly assist over 600,000 low-income Canadians with disabilities, making it one of the largest disability support schemes in Canadian history. It forms a key pillar of Canada’s Disability Inclusion Action Plan, a broader effort to create a more inclusive and equitable nation.
Estimator Tool: Know Your Benefit Amount in Advance
To help citizens plan ahead, the government has released a Benefit Estimator Tool. This tool allows applicants to calculate their expected monthly payment based on income and eligibility. It’s particularly helpful for those who want to budget effectively or decide whether they should apply immediately.
Accessibility Matters: Support for All Applicants
Recognizing the diverse needs of the community, the government has partnered with local organizations to make the application process accessible. People with limited digital literacy or technical barriers can receive guidance and help in completing their applications at designated centers.
Direct Deposit: The Fastest and Safest Payment Method
To ensure quick and secure delivery, the government is strongly recommending direct deposit for all payments. This method guarantees faster transactions, reduced paperwork, and fewer errors or delays. While applications without banking details are still accepted, direct deposit remains the preferred option.
Next Steps: What You Should Do Right Now
If you have already received the government’s letter with the access code, apply immediately using the provided link or instructions. If not, you can still apply by preparing the following:
- Social Insurance Number (SIN)
- Income details from your 2024 tax return
- Banking information (optional but preferred)
Use the official estimator tool to determine your expected benefit and set up direct deposit to receive monthly payments seamlessly.
FAQs On $200/Month Disability Benefit
Q1. What is Canada’s new $200 Disability Benefit?
A. It’s a new federal monthly benefit of up to $200 for low-income Canadians with disabilities, aged 18–64.
Q2. When do applications open?
A. Applications opened on June 20, 2025.
Q3. When will the first payments be made?
A. First payments will be issued in July 2025, for those approved by June 30, 2025.
Q4. How can I apply?
A. Through online application, phone assistance, or by visiting a Service Canada Centre.
Q5. What do I need to apply?
A. A Social Insurance Number, 2024 tax details, and bank information (if opting for direct deposit).
Q6. Will other benefits be affected?
A. No, except in Alberta, provinces and territories will not deduct this benefit from other disability payments.
