Starting in July 2025, eligible Canadians living with disabilities will begin receiving up to \$2,400 per year—that’s \$200 per month, tax-free—through the new Canada Disability Benefit (CDB). The goal is clear: reduce poverty, increase independence, and help cover daily living expenses such as rent, groceries, medications, and transportation.
Created under the Canada Disability Benefit Act (Bill C-22), the CDB is a historic national income support program for adults with disabilities. If you qualify, now is the time to understand how to prepare—because once the application portal opens in June, you’ll want to be ready.
What is the Canada Disability Benefit? [Program overview]
The Canada Disability Benefit is the country’s first federal income support program exclusively for working-age adults with disabilities. It’s designed to work alongside—not replace—provincial benefits, offering additional financial help without reducing other forms of assistance.
| Feature | Details |
|---|---|
| Annual Benefit | Up to \$2,400 (C\$200/month) |
| Start Date | July 2025 |
| Application Opens | June 2025 |
| Eligibility Age | 18–64 |
| Residency | Must be a legal resident of Canada |
| DTC Requirement | Must have an approved Disability Tax Credit |
| Tax Filing Required | Yes – Must file previous year’s tax return |
| Official Website | canada.ca |
Who is eligible for the Canada Disability Benefit?
To qualify for the CDB, you must meet all of the following criteria at the time of application:
Age
You must be between 18 and 64 years old.
Legal Residency Status
You must be a Canadian citizen, permanent resident, protected person, or temporary resident who has lived in Canada for at least 18 months.
Disability Tax Credit (DTC)
You must be approved for the Disability Tax Credit (DTC) through the Canada Revenue Agency (CRA). This confirms you live with a prolonged and significant disability.
Tax Filing
You must have filed your 2024 income tax return by April 30, 2025.
Incarceration Note
Individuals serving sentences of two or more years in federal prisons are not eligible during incarceration (except for the first and last months).
How much will you receive?
The CDB provides up to C\$200 per month, depending on your income and other existing benefits. The exact formula is expected to be finalized by May 2025, before the application portal opens.
Importantly, the CDB is non-taxable. That means:
- It won’t reduce other federal or provincial benefits
- It won’t count as income on your tax return
- It’s designed as supplementary income support
How to prepare for the June 2025 application
While the portal opens in June, you can begin preparing now to avoid delays. Here’s what to do:
1. Apply for the Disability Tax Credit (DTC)
If you’re not yet approved, complete Form T2201 with the help of your medical provider and submit it to the CRA.
2. File your 2024 tax return
Your income information will be pulled from your 2024 tax return, due April 30, 2025. Filing late could disqualify you.
3. Gather supporting documents
Prepare these items in advance:
- DTC approval letter
- Government-issued ID (e.g., passport, PR card)
- Direct deposit details (void cheque or banking info)
4. Prepare for digital or paper application
Applications will be accepted:
- Online via the Employment and Social Development Canada (ESDC) portal
- By mail using official forms
5. Track your application
Once submitted, use your My Service Canada Account (MSCA) to monitor your status.
Key rollout dates to remember
| Date | Event |
|---|---|
| May 15, 2025 | Final regulations take effect |
| June 2025 | Application portal officially opens |
| July 2025 | First payments begin to roll out |
Will this affect provincial disability support?
In most cases, no. The federal government has stated that the CDB is meant to supplement—not reduce—existing provincial and territorial programs. However, since each province manages its own social assistance rules, you should check with your provincial social services office for confirmation.
Some provinces have already announced that the CDB will not impact provincial benefits, while others are still finalizing how the new program will be treated.
Where to get help and support
Several organizations are ready to assist applicants with the Disability Tax Credit and CDB application process:
- Disability Alliance BC – Advocacy and form-filling support
- March of Dimes Canada – Application guidance for people with disabilities
- Prosper Canada – Financial planning and resource navigation
- 1-800-O-Canada – Federal government helpline for benefits
