$2,400 Canada Disability Benefit Announced – See If You Qualify and How to Apply

Starting July 2025, eligible Canadians with disabilities can receive up to C$2,400 per year through the new Canada Disability Benefit (CDB). That’s C$200 a month in non-taxable income aimed at supporting individuals aged 18 to 64 who face financial hardship due to disability. With applications opening in June 2025, now is the time to prepare.

This guide explains who qualifies, how to apply, and what steps to take before the deadline. If you or someone you know lives with a disability, this benefit could offer a real boost to your financial security.

Overview

Here’s a quick breakdown of the Canada Disability Benefit:

The CDB is the first federal benefit of its kind focused solely on working-age adults with disabilities. It’s designed to work alongside—not replace—existing provincial supports.

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Canada Disability Benefit

The CDB is a monthly, non-taxable federal benefit created under the Canada Disability Benefit Act, passed in 2023. It’s aimed at helping non-senior Canadians living with disabilities cover essentials like housing, food, medical care, and transportation.

Unlike OAS or GIS, this benefit targets adults aged 18 to 64. It also aligns with Canada’s goals under the United Nations Convention on the Rights of Persons with Disabilities, promoting inclusion and equality.

Who is eligible?

To receive the Canada Disability Benefit, you must meet all of these criteria:

Age

You must be between 18 and 64 years old at the time of applying.

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Residency

You must live in Canada for tax purposes and have one of the following legal statuses:

• Canadian citizen
• Permanent resident
• Protected person
• Temporary resident living in Canada for at least 18 months
• Registered under the Indian Act

Disability Tax Credit (DTC)

You must be approved for the Disability Tax Credit. If you haven’t applied yet, you’ll need to fill out Form T2201 with your doctor.

Tax filing

You must have filed a personal tax return for the previous year. For July 2025 payments, your 2024 tax return must be filed by April 30, 2025.

Exceptions

If you are incarcerated for more than two years, you’re not eligible during the incarceration period—except the first and last months.

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Amount

Eligible applicants may receive up to C$200 per month, or C$2,400 per year. The final amount depends on your income and possibly the benefits you already receive.

Since the benefit is non-taxable, it won’t count toward your income when applying for other supports or paying taxes.

Final income thresholds and formulas will be announced before applications open in June 2025.

How to apply

Applications officially open in June 2025, but here’s how you can get ready:

1. Apply for the DTC: Submit Form T2201 to the CRA. Have it signed by your medical practitioner.
2. File your taxes: Submit your 2024 tax return by April 30, 2025, to show income eligibility.
3. Gather documents:
   • Proof of DTC approval
   • Government ID (passport, PR card)
   • Direct deposit info
4. Submit the application: You’ll be able to apply online or by paper through Employment and Social Development Canada.
5. Track your status: After applying, you’ll get a confirmation number. Use your My Service Canada Account to check your application.

Important dates

Will this affect provincial benefits?

The CDB is meant to supplement—not reduce—your provincial disability benefits. Some provinces have already confirmed they will not claw back provincial payments. Check with your local Ministry of Social Services to confirm.

Additional Help

• Disability Tax Credit support: Disability Alliance BC and March of Dimes Canada can help you apply
• Financial literacy: Prosper Canada offers free tools for people with disabilities
• Phone assistance: Call 1-800-O-Canada (1-800-622-6232) for help

FAQs