As the cost of living continues to rise in 2025, many Canadian families are looking to the Canada Child Benefit (CCB) for financial relief.
Administered by the Canada Revenue Agency (CRA), the CCB is a tax-free monthly payment designed to help families with the cost of raising children under 18.
With the new benefit year starting in July, the question on many parents’ minds is: Will the monthly CCB payment increase this summer?
Understanding Canada Child Benefit Adjustments
The Canada Child Benefit is indexed to inflation, ensuring that the benefit keeps pace with the rising cost of living.
Each July, the CRA adjusts the CCB amounts based on the Consumer Price Index (CPI). For the benefit year from July 2024 to June 2025, the maximum annual amounts were:
- $7,787 per child under 6 years old (approximately $648.91 per month)
- $6,570 per child aged 6 to 17 (approximately $547.50 per month)
These figures reflected a 4.7% increase from the previous year, helping families manage rising expenses .
Anticipated Changes for Summer 2025
While the CRA has not yet released the official figures for the July 2025 to June 2026 benefit year, historical trends suggest another increase is likely.
The CCB is adjusted annually to reflect inflation, and with the CPI indicating continued cost-of-living increases, families can anticipate higher payments starting in July 2025.
The exact amount each family receives depends on their Adjusted Family Net Income (AFNI) from the previous tax year.
Therefore, the CRA will use 2024 tax return data to calculate payments for the upcoming benefit year.
Ensuring Eligibility and Maximizing Benefits
To ensure you receive the correct CCB amount:
- File Your 2024 Taxes Promptly: Both parents or guardians must file their 2024 income tax returns. The CRA uses this information to determine your CCB amount for the upcoming benefit year.
- Update Your Information: Notify the CRA immediately if there are changes in your marital status, number of children, or home address. This ensures your payments are calculated correctly.
- Track CRA Announcements: Regularly check your CRA My Account or federal updates to know when the new rates are announced and when the payments begin.
CCB Payment Schedule for 2025
The CRA typically issues CCB payments on the 20th of each month. If the 20th falls on a weekend or holiday, payments are made on the last business day before the 20th .
The Canada Child Benefit continues to be a vital support for families across the country. With anticipated increases in July 2025, it’s essential for families to stay informed and ensure their information is up to date to maximize their benefits.
FAQs
When will the new Canada Child Benefit rates be announced?
A1: The CRA usually announces the updated CCB rates in June, with the new benefit year starting in July.
How is the Canada Child Benefit amount determined?
A2: The CCB amount is based on your Adjusted Family Net Income (AFNI) from the previous tax year, the number of eligible children, and their ages.
Can newcomers to Canada receive the Canada Child Benefit?
A3: Yes, newcomers may qualify for the CCB after living in Canada for 18 months and once they’ve filed their tax returns .