The Canada Disability Benefit is a tax-free payment intended to enhance the financial security of persons with disabilities. It is administered by Service Canada. The first month of eligibility was June 2025. and payments began in July 2025.
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 (and spouse, unless spouse is non-resident).
Be a Canadian citizen, permanent resident, protected person, or a temporary resident who has lived in Canada throughout the previous 18 months.
Not be incarcerated
Benefit amount:
The maximum benefit is $2,448 per year ($204 per month) for the payment period of July 2026 to June 2027. This maximum will be adjusted annually for inflation.
The benefit is potentially reduced based on a formula that takes into account:
marital status
family net income
the portion of net income that is employment or self-employment income
whether both spouses receive the benefit
A “working income exemption” applies, allowing some employment income to be earned without reducing the benefit. For single persons, the maximum exemption is $10,000.
For a single person, the income threshold is about $23,000. For example, if a single person earned $40,000 in employment income and no other income, the benefit reduction for the year would be 20% X ($40,000 - $10,000 - $23,000) which equals $1,400.
Service Canada provides an online benefit estimator to help determine eligibility and payment amounts.
No social assistance clawback:
In Ontario, receipt of the Canada Disability Benefit will not result in a clawback of social assistance (OW or ODSP).
Payment Schedule:
Payments are issued annually from July to June, based on the previous tax year’s return.
Example: Benefits for July 2026 – June 2027 are based on the 2025 return.
How to Apply:
Applications can be completed directly through a Service Canada web page or by visiting a Service Canada location.
Retroactivity:
If the disability certificate is approved with a start date in the past, then the benefit may be paid retroactive from that date. However benefits will be paid for no more than 24 months from the date Service Canada receives the benefit application (and for no month prior to June 2025 which is when the benefit began).