Families across Canada will see an increase in financial support this July as the Canada Child Benefit (CCB) undergoes its annual inflation adjustment.
The federal government has confirmed a boost to monthly payments for the 2025–2026 benefit year, aligning with the rising cost of living and reinforcing its ongoing support for Canadian households with children.
Why the Canada Child Benefit is Being Increased
The Canada Child Benefit is evaluated every year to ensure it reflects inflationary trends and economic changes. Due to sustained cost pressures seen in food, housing, and childcare throughout 2024 and early 2025, the government is enhancing CCB payments beginning in July 2025.
This adjustment aims to help families cope with everyday expenses while ensuring their purchasing power remains stable. It’s part of Canada’s broader economic strategy to protect vulnerable populations, particularly families with young children.
Breakdown of the 2025 Canada Child Benefit Increase
The revised CCB rates will come into effect starting July 2025, with the updated figures offering noticeable gains for families:
| Age Group | Previous Annual Amount (2024–25) | New Annual Amount (2025–26) | Monthly Increase |
|---|---|---|---|
| Children under age 6 | $7,437 | $7,689 | Approximately $21 |
| Children aged 6–17 | $6,275 | $6,483 | Approximately $17 |
Families with a child under the age of six will receive about $252 more annually, while those with children between six and seventeen will gain approximately $208 extra per year. These changes help offset inflationary burdens and provide a more stable income stream to parents managing daily costs.
Eligibility Criteria Remain the Same
To access the updated CCB amounts, families must meet the following conditions:
- Have a child under 18 years of age.
- Be a Canadian resident for tax purposes.
- File annual income taxes, even if there is no income.
The CCB is an income-tested benefit, meaning the amount a family receives depends on their adjusted net family income. Higher-income families may experience smaller increases due to a gradual reduction in benefits based on earnings.
It’s also essential for families to file their 2024 income tax returns on time to ensure uninterrupted payments when the new amounts come into effect in July 2025.
How to Estimate the New CCB Payment
The Canada Revenue Agency (CRA) offers a Child and Family Benefits Calculator on its website to help families estimate their new benefit amounts. This tool considers the number of children, their ages, and household income to provide accurate projections.
CRA will also send personalized payment notifications to eligible families by late June 2025, outlining the total benefit for the year ahead. Additionally, families are encouraged to:
- Update direct deposit details with CRA.
- Ensure all previous tax filings are completed and accurate.
- Monitor official communications from CRA to avoid delays or discrepancies.
What This Means for Canadian Families
This year’s CCB increase is more than just an inflation adjustment—it’s a targeted support mechanism designed to help families stay financially resilient in challenging times.
By proactively raising benefit levels, the government is helping parents provide essential resources for their children while maintaining economic stability within households.
With the July 2025 increase, Canadian families can expect more breathing room in their budgets, particularly those with younger children who typically face higher expenses.
The Canada Child Benefit increase in July 2025 represents a continued effort by the federal government to support families facing financial challenges.
With a clear focus on inflation relief, this increase offers a tangible improvement in monthly support, helping families cover essentials and plan more confidently for the future.
Eligible parents are encouraged to complete their tax returns promptly and use the CRA’s online calculator to prepare for the upcoming changes.
FAQs
When will the new Canada Child Benefit amounts take effect?
The increased payment amounts begin in July 2025 for the 2025–26 benefit year.
How much more will families receive per child?
Families may receive approximately $21 more per month for children under six and $17 more per month for children aged 6–17.
Will high-income families receive the full increase?
No. The CCB is income-tested, so higher-income households may receive reduced amounts due to the progressive reduction formula.