Bigger child tax payments hit Canadian families’ bank accounts early
Families eligible for the Canada Child Benefit (CCB) program should check their bank accounts as payments are arriving early.
CCB payments typically go out on the 20th of every month, but since the 20th falls on a weekend, payments will be deposited two days early on Friday, July 18. Child tax payments this month will also be different, and parents will likely notice a change in the amount they receive.
That’s because this month’s payment is the start of the calendar year when the government increases the amount families will receive. In July last year, the federal government increased the child tax benefit by 4.7 per cent. The maximum payment for kids under six went up by $350, from $7,437 to $7,787. For children aged 6 to 17, the increase was $295, from $6,275 to $6,570.
Since 2018, Ottawa has used a process called indexation to up the benefit amounts to help parents amid the rising cost of living.
pu_kibun/Shutterstock
An Employment and Social Development Canada (ESDC) spokesperson told Daily Hive in January that the indexation means the max child tax benefit amounts and income thresholds are increased yearly to “keep pace with the rising cost of living.”
While the CCB increase was over four per cent last year, it won’t be as sizeable this year.
The Canada Revenue Agency (CRA) says families will get a 2.7 per cent boost in child tax payments starting Friday. That brings the annual base benefit for children under six from $7,787 to $7,997 ($666.41 monthly) and from $6,570 to $6,748 ($562.33 monthly) for children aged six to 17 until June 2026.
The Child Disability Benefit (CDB) will also go up from $3,322 to $3,411 ($284.25 per month) in July.
If you still haven’t filed your taxes, make sure to do so because you won’t receive the payment until your 2024 tax return is assessed.
You can check if your family is eligible for Canada’s child tax benefit by taking the government’s eligibility test.
If you don’t receive your payment on Friday, wait five working days from the payment date to contact the CRA.