Canadian families will get child tax payments this Friday
The final Canada Child Benefit payments are scheduled to be deposited into bank accounts this Friday, ahead of an increase in July.
Eligible families can expect to receive Canada Child Benefit (CCB) payments on June 20. This month’s payment will be the last one before the scheduled increase in July, which marks the beginning of the new benefit year.
The last time the federal government increased the child tax benefit was in July 2024 when payments went up by 4.7 per cent. As a result of the increase, the maximum payment for children under six increased by $350, from $7,437 to $7,787. For children aged six to 17, payments increased by $295, from $6,275 to $6,570.
To help parents with the rising cost of living, Ottawa has been using a process called indexation to increase the benefit amounts since 2018.
An Employment and Social Development Canada (ESDC) spokesperson explained that, due to the indexation process, tax child benefit payments, as well as income thresholds, increase every year.
However, unlike the 4.7 per cent payment bump in 2024, the upcoming increase will be comparatively lower.
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Starting in July, families will see a 2.7 per cent boost in child tax payments, according to the Canada Revenue Agency (CRA). That means annual payments for children under six will increase from $7,787 to $7,997, or $666 monthly. For children aged six to 17, this means an annual payment increase from $6,570 to $6,748, or $562 per month.
The increased rate of 2.7 per cent will be applicable to all payments until June 2026. The first payment for the new rate will be issued on July 18.
Families eligible for a Child Disability Benefit (CDB) can also expect an increase. The tax-free payments are also scheduled to go up in July from $3,322 to $3,411. The amount you receive is based on adjusted family net income from the previous year.
If you don’t receive this month’s payment on time, wait five working days before contacting the CRA. Also, make sure to file your taxes because otherwise, you won’t receive CCB payments until your 2024 tax return is assessed.
Not sure if your family qualifies for Canada’s child tax benefit? Check here to find out.
Eligible Canadians can also expect to receive other benefits this month.