Benefit payments will be issued on Monday for the Canada Child Benefit, and households that qualify will see a bit more money this time as part of an annual increase.
The Canada Child Benefit (CCB) is a tax-free monthly payment from the federal government aimed at helping eligible families with the cost of raising children under 18 years of age.
The CCB increases annually relative to inflation, and the benefit payment is going up by two per cent, according to the federal government.
“Starting this month, the CCB will provide families with up to $8,157 per child under the age of six and up to $6,883 per child aged six to 17. This represents an increase of up to $160 per child under age six and up to $135 per child aged six to 17 compared to the previous year,” the CRA said in a release on Friday.
The Bank of Canada aims to keep inflation, measured by the consumer price index (CPI), within a target range of one and three per cent to maintain price stability.
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The CPI report for May showed a headline inflation reading of 3.2 per cent, which was largely driven by higher gas prices, while core inflation was closer to two per cent.
Qualifying for the CCB is similar to other benefit payments, like the Canada Groceries and Essentials Benefit, in that it depends on a handful of factors, including adjusted net family incomes.
Income thresholds for these benefits mean households with higher incomes see a smaller CCB payment, or none at all. Those thresholds for payments from July 2026 to June 2027 are based on the 2025 tax year.
If households made less than $38,237, they would be entitled to the maximum benefit amount for each child with no reductions.
In this scenario, the maximum amount a household could receive in CCB payments would be $8,157 per year ($679.75 per month) for each child under six years of age, and $6,883 per year ($573.58 per month) for each child between six and 17 years of age.
For households that make more than $38,237, the CCB benefit amount is reduced, or “clawed back,” depending on how much higher the income is relative to that minimum amount, and varies based on the number of children.
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