The Canada Disability Benefit is a tax-free payment introduced in July 2025 to enhance the financial security of persons with disabilities. It is administered by Service Canada.
Eligibility:
To qualify, an individual must:
Be a resident of Canada between ages 18 and 64.
Hold a valid Disability Tax Credit certificate.
Have filed an income tax return.
Be a Canadian citizen, permanent resident, protected person, or a temporary resident
Benefit amount:
The maximum benefit is $2,400 per year ($200 per month) for the period July 2025 to June 2026. This maximum will be adjusted annually for inflation.
The benefit is potentially reduced based on a formula that depends on:
Marital status.
Employment or self-employment income of each spouse.
Whether both spouses receive the benefit
A “working income exemption” applies, allowing some employment income to be excluded from the calculation.
Service Canada provides an online benefit estimator to help determine eligibility and payment amounts.
Payment Schedule:
Payments are issued annually from July to June, based on the previous tax year’s return.
Example: Benefits calculated from the 2024 tax year are paid July 2025 – June 2026.
How to Apply:
In June 2025, individuals approved for the DTC who appeared to meet eligibility requirements received a letter with a unique application code and instructions.