Starting in July 2025, the Canadian government will roll out the Canada Disability Benefit (CDB) — a major new program providing up to C\$2,400 per year to eligible working-age Canadians living with disabilities. That’s \$200 per month, tax-free, designed to help cover essential living costs and ease the financial burden on people with long-term impairments.
Announced in Budget 2024, this benefit marks one of the most significant expansions in federal income support in years, with an estimated 600,000 Canadians expected to qualify.
Here’s a complete breakdown of who’s eligible, how much you can expect to receive, and how to prepare for the rollout.
What is the Canada Disability Benefit?
The Canada Disability Benefit (CDB) is a new federal financial support program targeting low-income adults aged 18–64 who are living with disabilities. Modeled after other federal programs like the Canada Child Benefit and Old Age Security, the CDB is intended to provide predictable, monthly payments to those facing higher living costs due to disability-related challenges.
It aims to reduce poverty, promote financial independence, and improve the quality of life for Canadians with disabilities.
Why the benefit matters [Purpose and background]
Many Canadians with disabilities face a higher cost of living due to additional needs such as assistive devices, medications, home modifications, and frequent medical appointments. At the same time, employment options can be limited, and some individuals are unable to work full-time.
The CDB offers a stable monthly income, helping to close the financial gap and support essential living needs such as:
- Rent or housing
- Groceries and dietary needs
- Medication and healthcare
- Mobility and accessibility services
- Utilities and home maintenance
Who qualifies for the Canada Disability Benefit?
To receive the CDB, you must meet all of the following criteria:
- Be between 18 and 64 years old
- Be a Canadian resident
- Be approved for the Disability Tax Credit (DTC)
That last point — the Disability Tax Credit — is non-negotiable. If you’re not already approved for the DTC, you’ll need to apply through the Canada Revenue Agency (CRA). A licensed medical professional must complete a certification form on your behalf to prove that you have a severe and prolonged impairment.
The government is currently working to simplify the DTC application process to ensure more people qualify in time for the benefit launch.
When do payments start? [Benefit timeline]
The CDB will begin issuing monthly payments in July 2025, but key rollout milestones start earlier:
| Year | Milestone |
|---|---|
| 2024 | Regulations and benefit structure finalized |
| Early 2025 | Application process officially announced |
| July 2025 | First payments begin |
| Late 2025+ | Ongoing review and potential adjustments |
The payment amount is C\$200/month, or C\$2,400 annually, and will be deposited directly into your bank account, just like other CRA-managed benefits.
How to prepare before applications open
While applications aren’t open yet, there are several important steps you can take now to ensure you’re ready:
- Check your DTC status
If you already have an active Disability Tax Credit certificate, you’re one step ahead. - Apply for the DTC (if you haven’t yet)
Visit Canada.ca to begin your DTC application through CRA. - Collect supporting medical documentation
Your doctor or specialist must fill out Form T2201 confirming your disability. - Organize income-related documents
Prepare your Notice of Assessment, T4s, or other income proof for income testing. - Watch for official announcements
Monitor CRA and government press releases for updates on the application portal launch.
How the benefit fits into Canada’s disability investment plan
The CDB is part of a wider government investment into disability inclusion and care, including:
| Program | Investment | Purpose |
|---|---|---|
| Canada Disability Benefit (CDB) | Not fixed per person | \$2,400/year in support payments |
| Disability Tax Credit Reform | C\$243M over 6 years | Faster and more accessible DTC approvals |
| Healthcare Expansion | C\$200B over 10 years | Improve long-term care and medical access |
| National Dental Program | C\$13B over 5 years | Help low-income Canadians with dental costs |
| Provincial Disability Funding | C\$6.1B over 6 years | Strengthen local and regional programs |
Concerns and ongoing challenges
Despite broad support, some questions remain about how the benefit will work in practice:
- Will provinces reduce their own support?
There’s concern that provincial programs may treat the CDB as income, potentially leading to clawbacks of other benefits. - Is the application process accessible enough?
Many people with disabilities face challenges navigating complex paperwork, securing medical forms, and dealing with delays. - Will income testing be fair?
If eligibility is based on household income rather than individual income, some applicants in need may not qualify.
The government has promised continued consultations with disability advocates and service organizations to make improvements where necessary.