In 2025, families throughout Canada that have children with disabilities will be able to access a major financial support program that alleviates some of the burdens of raising a child with special needs. The $301 Disability Benefit for Children is in line with a larger government program designed to provide support to families that qualify on a monthly basis. It is important for families to understand the registration requirements and benefit amount in order to access the assistance.
The Child Disability Benefit (CDB) is a tax-free monthly payment that can be claimed by families with children under 18 years of age who have a severe and prolonged impairment in their physical or mental functions. For the benefit period of July 2025 to June 2026, families can claim a maximum of $3,411 per year or $284.25 per month for each eligible child. This benefit is paid automatically to families who receive the Canada Child Benefit (CCB) and whose child is eligible for the Disability Tax Credit (DTC).
Eligibility for this benefit requires the child to have an impairment which must be certified by a medical professional on Form T22001, Disability Tax Credit Certificate, approved by Canada Revenue Agency (CRA). The impairment must be both severe and prolonged. Also, the family needs to have qualifying Canada Child Benefit (CCB) income. Importantly, if a family is already receiving CCB for a disabled child, there is no need to apply separately for the CDB because payments will be made automatically.
The primary determinants of the benefit a family receives are their adjusted family net income (AFNI) and the number of children. Families earning more than $81,222 will begin to have their benefit reduced. For families with one eligible child, a reduction rate of 3.2% will apply while 5.7% for those with two or more eligible children. This sliding scale ensures that the benefit targets families most in need of support while still providing assistance to a wide range of households.
Importantly, the benefit received for disabilities is not classified as taxable income. Thus, it will not affect eligibility for other provincial or federal benefits, except for special cases like in Alberta. In addition, the benefit is indexed to inflation in order to maintain real value. This ensures that the families continue to receive meaningful support.
How to Get the $301 Child Disability Benefit in Canada This Year
The Canadian government is still working on simplifying the application and approval process. This lets families receive retroactive payments for as long as 24 months after approval. Also, the CRA is instituting an annual payment recalculation every July. This means that filing income taxes on time is crucial to obtaining and retaining the benefit.
As with other benefits and supports issued by the government, the Child Disability Benefit is part of the federal support system that aims to assist families who have children with disabilities.