June 20, 2025

The New Canada Disability Benefit: Apply Now

Written by Leanne Seel, CPA, CA
An image of a worker in their wheelchair on the way to the office in Ottawa.

If you or a loved one are eligible for the Disability Tax Credit (DTC), it’s time to apply for the Canada Disability Benefit (CDB). This is a new federal initiative designed to support the financial security of working-age Canadians with disabilities.

Set to begin payments in July 2025, the CDB will provide eligible individuals with up to $2,400 per year ($200 per month). This benefit is reduced by 20 cents for every dollar that your adjusted family net income is over $23,000 if you are single or $32,500 if you have a spouse or common-law partner. However, when calculating adjusted family net income for the purposes of this benefit, certain amounts are excluded:

  • Income from Registered Disability Savings Plans
  • Working income (for example from a job) of up to $10,000 if you are single, $14,000 if you have a spouse/common-law partner

Therefore, if you meet the eligibility criteria below, we encourage you to apply regardless of income level.

Who is Eligible for the New Canada Disability Benefit (CDB)?

To qualify for the Canada Disability Benefit (CDB), you must meet the following criteria:

  • Be a resident of Canada for income tax purposes.
  • Be between 18 and 64 years old.
  • Be eligible for the Disability Tax Credit (DTC). Eligibility for the DTC is determined by the CRA based on information provided by a qualified medical practitioner. If you are not already approved for the DTC, you will need to apply for it before you can receive the CDB.
  • Have filed an income tax return with the Canada Revenue Agency (CRA) for the previous tax year (for example, to receive benefits for the July 2025 to June 2026 payment period, you must have filed a return for the 2024 tax year)
  • Be one of the following:
    • A Canadian citizen
    • A permanent resident
    • An individual registered or entitled to be registered under the Indian Act
    • A protected person (as defined in the Immigration and Refugee Protection Act)
    • A temporary resident who has lived in Canada throughout the previous 18 months

How to Apply for the New Canada Disability Benefit (CDB)?

  1. Ensure you are eligible for the Disability Tax Credit (DTC): If you are not already approved, complete Form T2201, Disability Tax Credit Certificate, with the help of your medical practitioner and submit it to the CRA. More information on this process here: https://mccayduff.com/could-you-or-a-loved-one-qualify-for-the-disability-tax-credit/
  2. Make sure your 2024 income tax return has been filed: The CRA uses your tax return to confirm your eligibility and calculate your benefit amount.
  3. Gather the following information:
    • Your Social Insurance Number
    • Direct deposit information
    • Net income from line 23600 of your 2024 Notice of Assessment
  4. Starting June 20, 2025 – submit your application online through the web portal, which can be found here: https://www.canada.ca/en/services/benefits/disability/canada-disability-benefit/apply.html. Applications can also be made in person at a Service Canada office, or by phone. According to CRA, people who meet most of the eligibility criteria should receive application instructions in the mail in June. However, you can still apply even if you haven’t received anything.

It is in your best interest to get the application submitted as soon as possible. To receive your first payment in July 2025, your application must be approved by June 30, 2025. If your application is processed after that date, you will still receive the full amount you’re eligible for – including a catch-up payment for July 2025 onwards – but the payment may arrive later.

Contact McCay Duff LLP for Help with the New Federal Initiative Designed to Support Working-Age Canadians with Disabilities

At McCay Duff LLP, our trusted team of Chartered Professional Accountants provides high-quality tax and business advisory services to businesses and individuals in Ottawa and the surrounding area. If you have questions about your eligibility or need assistance with the DTC application, please contact our office—we’re here to help. Contact us online or by telephone at 613-236-2367 or toll-free at 1-800-267-6551.