Two federal programs use similar names and the same “CDB” acronym, causing confusion. The Child Disability Benefit (CDB) is a tax-free monthly payment to families with a DTC-eligible child under 18, paid through the Canada Child Benefit (CCB) system. The Canada Disability Benefit is a separate federal income supplement launched July 2025 for working-age adults (18 to 64) approved for the DTC. They are not interchangeable and a family can receive both for different family members. Both require the Disability Tax Credit as a precondition.
The two programs at a glance
| Feature | Child Disability Benefit (CDB) | Canada Disability Benefit |
|---|---|---|
| Beneficiary age | Under 18 | 18 to 64 |
| Maximum (Jul 2025 – Jun 2026) | $3,411/yr ($284.25/month) per eligible child | $2,400/yr ($200/month) per eligible adult |
| How it is paid | Added to monthly Canada Child Benefit (CCB) payment | Separate monthly payment from Service Canada |
| Who applies | Automatic if you receive CCB and child has approved DTC | Application required (online via My Service Canada Account, by mail, or in person) |
| Income test | Reduces above adjusted family net income (AFNI) of $81,222 | Reduces above net income of $23,000 single / $32,500 couple (with $14,000 working income exemption) |
| Tax treatment | Tax-free | Tax-free |
| DTC required | Yes (for the child) | Yes (for the adult) |
| Authority | Income Tax Act, administered by CRA | Canada Disability Benefit Act, administered by Service Canada |
Child Disability Benefit (CDB)
Maximum and phase-out
For July 2025 to June 2026, the maximum CDB is $3,411 per year ($284.25 per month) per eligible child. The benefit reduces:
- For families with one eligible child: 3.2 percent of adjusted family net income (AFNI) above $81,222.
- For families with two or more eligible children: 5.7 percent of AFNI above $81,222.
At AFNI of $187,840 (one child) or $141,047 (two children), the CDB phases out fully. The CDB is recalculated each July based on the prior year’s tax return.
How CDB is paid
The CDB is added directly to the monthly CCB payment. A family with a non-disabled child age 4 receiving $570/month CCB and a DTC-eligible child age 7 will receive $570 (regular CCB for the older child) + the CCB amount for the younger plus $284.25 CDB on top. There is no separate notice or slip; the CDB amount appears on CCB statements.
Retroactive CDB
When DTC is approved retroactively for a child, CRA automatically pays back CDB for the current and two prior benefit years. For years before that, the family must send a written request to the relevant tax centre. CDB has its own 10-year limitation similar to T1 adjustments.
Canada Disability Benefit (started July 2025)
Eligibility
| Requirement | Detail |
|---|---|
| Age | 18 to 64 (becomes ineligible the month after the 65th birthday) |
| DTC | Must be approved for the Disability Tax Credit |
| Residency | Canadian resident for tax purposes; specific residency tests apply |
| Tax filings | Must have filed a T1 return for the prior year (and your spouse if applicable) |
| Inmate exclusion | Not eligible while incarcerated for two or more consecutive years in a federal penitentiary |
Maximum and reduction
For July 2025 to June 2026, the maximum benefit is $2,400 per year ($200 per month). The benefit is reduced based on income above the following thresholds:
- Single: net income above $23,000.
- Couple: combined net income above $32,500.
- Working income exemption: the first $14,000 of working income for singles ($14,000 each for couples) is excluded from the income test, encouraging part-time work without immediate clawback.
Above the thresholds, the benefit reduces by 20 cents per dollar of income (single) or by combined formula for couples.
How to apply
- Confirm DTC eligibility. Form T2201 must be on file with CRA.
- Prepare identifying information: SIN, banking details, prior-year tax return.
- Apply through My Service Canada Account, by mail, or in person at Service Canada.
- Service Canada determines eligibility and issues a benefit start date.
- Payments are deposited monthly into the recipient’s bank account.
Stacking with provincial disability benefits
Provincial disability assistance programs (Ontario Disability Support Program, BC Persons with Disabilities, AISH in Alberta, etc.) generally do not reduce dollar-for-dollar with the Canada Disability Benefit. Most provinces have committed not to claw back the federal benefit, though specific implementation rules vary by province. Recipients should verify with their provincial program before applying.
What changed in July 2025
The Canada Disability Benefit Act was passed in 2023 and took effect in regulation form in 2025. The first payments were issued in July 2025 for those who applied early. Eligibility back-pays are limited to the date of application; there is no retroactive back-pay before July 2025. Monthly amounts will be indexed to inflation each July.
Worked example: family with two DTC-eligible members
A family of four in Ontario with $90,000 AFNI: two parents, an adult son age 25 with autism (DTC approved), and a daughter age 12 with Type 1 diabetes (DTC approved through the life-sustaining therapy category).
| Benefit | Amount per year |
|---|---|
| Child Disability Benefit for daughter (one eligible child, AFNI $90,000 = $8,778 above threshold) | $3,411 – ($8,778 × 3.2%) = $3,411 – $281 = $3,130 |
| Canada Disability Benefit for son (single adult, his own income $0) | $2,400 |
| DTC base credit (claimed on each individual’s T1, daughter transferred to parent) | ~$1,800-2,800 federal-plus-provincial per person |
| Combined annual federal benefit value | ~$10,000+ |
Cross-references
- Who Qualifies for the Disability Tax Credit?
- DTC Retroactive Claims
- RDSP Rules: Grants, Bonds, and Withdrawal Penalties
- DTC Transfer to a Spouse, Parent, or Family Member
Frequently asked questions
- What is the difference between Child Disability Benefit and Canada Disability Benefit?
- The Child Disability Benefit is a tax-free monthly payment for DTC-eligible children under 18, added to the CCB. The Canada Disability Benefit (started July 2025) is a separate federal benefit for DTC-eligible adults 18 to 64, up to $200/month.
- How much is the Child Disability Benefit in 2026?
- Up to $3,411 per year ($284.25 per month) for the period July 2025 to June 2026. The benefit reduces above $81,222 of adjusted family net income.
- How much is the Canada Disability Benefit?
- Up to $2,400 per year ($200 per month) for July 2025 to June 2026. The benefit reduces above net income of $23,000 (single) or $32,500 (couple), with a $14,000 working income exemption.
- Do I need to apply for the CDB?
- Not for the Child Disability Benefit if you already get CCB and your child is approved for DTC; it is automatic. The Canada Disability Benefit requires a separate application through Service Canada.
- Are these benefits taxable?
- No. Both the Child Disability Benefit and the Canada Disability Benefit are tax-free.
- Can I receive both benefits at the same time?
- Yes, for different family members. A family with a DTC-eligible child under 18 and a DTC-eligible adult 18 to 64 can receive both.
- Will provinces claw back the Canada Disability Benefit from provincial disability assistance?
- Most provinces have committed not to reduce provincial disability assistance dollar-for-dollar against the federal Canada Disability Benefit. Specific rules vary; check with your provincial program before applying.