Canada Disability Benefit: New Support!

Posted on June 17th, 2025 in Domestic Tax

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The Canada disability benefit is a new monthly payment for working-age persons with disabilities who have low income. The first payments will be made in July 2025.

To be eligible for this benefit, individuals must meet the following criteria:

be a resident of Canada (for tax purposes);
have a valid disability tax credit certificate;
be between the ages of 18 and 64;
have filed an income tax return for the previous tax year; and
be either a Canadian citizen, permanent resident, protected person, a temporary resident (that lived in Canada for the past 18 months), or registered (or entitled to be registered) under the Indian Act.

The maximum benefit for the July 2025 to June 2026 period is $2,400 ($200 per month), but is reduced by the following:

20% of income above $23,000 if the beneficiary is single;
20% of income above $32,500 if the beneficiary is married or has a common-law partner; and
10% of income above $32,500 if the beneficiary is married or has a common-law partner and both are eligible.

The first $10,000 of working income ($14,000 for a couple) is exempt from this calculation. Income is based on the most recent taxation year that ended before the payment period begins.

If the individual is married or in a common-law relationship, their partner must also file a tax return for the previous tax year. In limited cases, the person applying for the benefit can ask to remove the requirement that their spouse or common-law partner file an income tax return. This includes situations where the partner is not resident in Canada, the partner does not live with their partner for reasons that they cannot control (e.g. one partner lives in a long-term care home), or it is unsafe for the person to ask their spouse to file a tax return.

While the application process has not yet opened, individuals should ensure the following is completed in preparation: