The Canada Disability Benefit is here, and it’s about time. Nearly five years have passed since the benefit was first announced by the Liberal government in September 2020, as part of a broader disability inclusion plan. After many delays and much deliberation, the benefit received royal assent—meaning it was signed into law—in June 2023. The regulations for the benefit came into force on May 15, 2025. Applications opened on June 20, 2025.
The launch of the Canada Disability Benefit is welcome news to Canadians with disabilities, their families and other advocates. To date, the patchwork of disability support programs across the country—made up of multiple provincial and federal programs—has been challenging to navigate for many, with lengthy application processes. These support programs all aim to give people with disabilities the financial support they need to live. Whether they achieve that goal is up for debate, but now we have another option to stitch into the social fabric: the Canada Disability Benefit.
In this article, we’ll take you through what the Canada Disability Benefit is, who is eligible, how much you could get, how to submit an application and more.
What is the Canada Disability Benefit?
The Canada Disability Benefit is a new federal benefit for people with disabilities. It is for working-age Canadians—people aged 18 to 64. The goal of the program is to lift more disabled people out of poverty, as a disproportionate amount of Canadians with disabilities are well below the poverty line.
What is the Canada Disability Benefit amount?
The maximum Canada Disability Benefit for eligible recipients will be $2,400 a year ($200 per month). The benefit will be adjusted annually for inflation, which is a change from some provincial programs.
The amount you’ll get is based on your adjusted family net income, from your previous year’s income tax return. To receive the Canada Disability Benefit for the payment period that runs from July 2025 to June 2026, you must have filed a 2024 income tax return. If you have a spouse or common-law partner, you must both have filed a tax return.
What is adjusted family net income (AFNI)? (Tap to open.)
Your adjusted family net income (AFNI) is:
- your family net income (line 23600 of your tax return, plus line 23600 of your spouse’s or common-law partner’s tax return, if applicable)
- minus any universal child care benefit (UCCB) and registered disability savings plan (RDSP) income received (line 11700 and line 12500 of your or your spouse’s tax return, if applicable)
- plus any UCCB and RDSP amounts repaid (line 21300 and line 23200 of your or your spouse’s tax return, if applicable)
Source: Canada Revenue Agency
You can use the government’s Canada Disability Benefit Estimator to see how much you could receive.
The working income exemption
The Canada Disability Benefit has a working income exemption of $10,000 for individuals and $14,000 for couples.
The maximum benefit is available to single recipients with an AFNI up to $23,000, after subtracting up to $10,000 for the working income exemption. For couples—where one or both partners are eligible—the AFNI threshold is $32,500, after subtracting up to $14,000 for the working income exemption.
Once you have exceeded the threshold, the benefit is reduced at a rate of $0.20 per dollar of income.
When will the new Canada Disability Benefit begin?
Applications open on June 20, 2025, and the first Canada Disability Benefit payments will go out in July (for applications received and approved by June 30, 2025). The benefit will be administered by Service Canada. Much like with the Canadian Dental Care Plan, those the government has identified as eligible will receive a letter and be directed towards an online portal, but you can also apply via phone or in-person at a Service Canada location. The most efficient way to receive government payments is to sign up for direct deposit to your bank account.
Will other disability benefits be clawed back?
All provinces and territories except Alberta have committed to not clawing back the Canada Disability Benefit, according to Disability Without Poverty.
This is a significant change in fiscal policy when it comes to disability support funding. In the past, with programs like the Canada Emergency Response Benefit (CERB), many provinces clawed back the pandemic-related assistance for those receiving social assistance such as Alberta’s Assured Income for the Severely Handicapped (AISH) or the Ontario Disability Support Program (ODSP). Historically, the provinces have varied widely when it comes to how they implement their disability support programs.
Who is eligible for the new Canada Disability Benefit?
In order to be eligible for the Canada Disability Benefit you must have received approval for the disability tax credit (DTC). The DTC is the bar for entry when it comes to many provincial and federal disability support programs.
The Canada Disability Benefit also has some other requirements. You have to be aged between 18 and 64, and you can’t be incarcerated. If you are incarcerated and become ineligible, the rules state that you must reapply once you have served your sentence. These checkboxes are in addition to ones typical of federal programs, including:
- The need to file your previous year’s tax return
- You have to be a Canadian resident—whether that’s as a citizen, a permanent resident, a protected person, a person with rights under the Indian Act, or a temporary resident who has lived in the country for at least 18 months.
If you are older than 64, you may be able to apply for two years of back payments, with the earliest date being July 2025. If you are younger than 18, you are allowed to apply when you are 17 and a half, with benefits commencing on your 18th birthday.
What is the disability tax credit?
The disability tax credit (DTC) is one of the longest-standing disability support programs in Canada. It first began in 1988 and is the criteria for entry for many disability support programs. However, the DTC is underused, and many Canadians with disabilities who likely qualify for it have not yet applied.
In order to be eligible for the DTC, you must have a physician fill out a lengthy form that assesses how your disability, or disabilities, affect your life. What the government is looking for a “marked restriction.” This means that a disability creates a situation where an activity takes you three times as long as someone like you who doesn’t have a disability, if you can do it at all. In order to be considered, your disability must be present 90% of the time or more and have lasted for at least a year.
While the DTC does entitle you to claim a sizable tax credit—$9,872 for the 2024 tax year—DTC eligibility is also a requirement for participation in other federal programs, such as the registered disability savings plan (RDSP), the child disability benefit and the Canada Workers Benefit disability supplement.
Apply now for the disability tax credit
It can take several months, or longer, to be approved for the DTC. The Canada Revenue Agency estimates that DTC applicants should receive a decision after eight weeks. However, some people may have to apply multiple times or provide further clarification in order to receive approval. For some with permanent disabilities, there is no need to reapply once you have been approved. But those whose disability may be seen to be curable may have to reapply. Get more details on applying for the disability tax credit.
Medical conditions that qualify for disability tax credit (tap to open)
As can be expected for programs that have existed for more than 30 years, the list of eligible conditions has shifted over time. For example, in 2022, the list was expanded to include more mental functions and type 1 diabetes. The current lists include nine umbrella categories:
- Walking
- Mental functions
- Dressing
- Feeding
- Eliminating (bladder and bowel function)
- Hearing
- Speaking
- Vision
- Life-sustaining therapy
The DTC also allows for situations where a person is affected in two ways at the same time, a common scenario for people with disabilities. Known as a cumulative effect, this provision allows for conditions where two impairments combined equal the impact required to meet the threshold for approval where one condition’s impact wouldn’t be enough on its own.
How to apply for the Canada Disability Benefit
The Canada Disability Benefit application will be available via the Government of Canada’s website. Apply for the Canada Disability Benefit.
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First, qualify for the disability tax credit
While the Canada Disability Benefit has been championed by some, advocacy groups such as Disability Without Poverty have repeatedly called on the Canadian government to increase the amount of money being provided and to take action to prevent provinces from clawing back the funds. The main concern is that, due to the depth of poverty faced by many disabled Canadians, $200 per month may not be enough for recipients to feel a tangible difference in their living situation.
This is not the first time Canada’s leaders have been called upon to do more. Such was the case during the rolling out of COVID-19-related support programs like CERB, as well as during the negotiation process over the Accessible Canada Act, a federal law passed in 2019.
Nevertheless, the Canada Disability Benefit stands to be a significant addition to the programs available to Canadians with disabilities. However, in order to access it, you will have to be deemed eligible for the disability tax credit. Given the length of time it takes to complete the application and get approved, you’ll want to submit the paperwork for the DTC as soon as possible.
Lastly, don’t forget about other federal and provincial programs you may be eligible for. The federal government has a handy Benefits Finder tool that allows you to see what you may qualify for at both the federal and provincial level.
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Read more about government benefits:
- RDSP myths, explained
- Are you receiving the child benefits you’re entitled to?
- How much money does the government contribute to an RESP?
- Financial aid guide for university and college students in Canada
- OAS payment dates, and more to know about Old Age Security
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