The Canada Workers Benefit (CWB) is back in action for 2025—and this year’s first advance payment, released in July, might be bigger than expected. That’s thanks to inflation-based increases approved by the Canada Revenue Agency (CRA). If your income or family status changed in 2024, you could qualify for more support this year.
With rising living costs, the CWB continues to be one of the most important federal benefits available to low-income workers in Canada. Here’s what you need to know about the updated 2025 benefit.
Table of Contents
Definition
The CWB is a refundable tax credit for working Canadians with low income. It helps reduce taxes or even adds money to your pocket if you don’t owe any. It comes in two parts:
- A basic amount for individuals or families
- A disability supplement for those approved for the Disability Tax Credit (DTC)
The goal is to reward work while easing financial stress for lower-income earners.
Advance
To keep cash flow steady throughout the year, the CRA offers advance payments through the Advanced Canada Workers Benefit (ACWB). Instead of waiting for your full refund after filing taxes, you get up to 50% of your CWB in three early instalments.
These advance payments are automatic—no extra forms needed. As long as you file your return before November 1 and qualify, you’ll receive the payments directly.
If you qualify for the disability top-up, that part is also split into advance payments.
Criteria
To qualify for the CWB in 2025, you must:
- Be a Canadian resident all year
- Be 19 or older by December 31 (or live with a spouse/partner/child)
- Have working income and family net income below your region’s threshold
Income Limits
| Category | Max Income to Qualify |
|---|---|
| Single | $36,749 |
| Families | $48,093 |
You do not qualify if:
- You were a full-time student for over 13 weeks (unless you had a dependent)
- You were in prison for 90+ days
- You are exempt from paying Canadian tax (e.g., diplomat)
Disability Supplement
To get the extra top-up:
- You must have an approved Form T2201
- You must qualify for the Disability Tax Credit (DTC)
Even if your income is too high for the base benefit, you might still get the disability supplement.
Application
No separate application is needed. Here’s how it works:
- If you file taxes online, your software will guide you
- If you file on paper, complete Schedule 6 and attach it to your return
For Couples
- If only one spouse qualifies for the DTC, they can claim both base and supplement
- If both qualify, each completes Schedule 6 but only one can claim the basic amount
If you filed your return on time and included line 45300, advance payments will come automatically.
Amounts
How much you receive depends on income, family situation, and province.
| Category | Max Benefit | Phase-Out Starts | Fully Phased Out At |
|---|---|---|---|
| Single | $1,590 | $26,149 | $36,749 |
| Families | $2,739 | $29,833 | $48,093 |
| Disability Supplement | $821 | $36,748 (single) | Up to $59,038 |
Note: Family income limits vary if both adults qualify for DTC.
July Payment
The first ACWB payment for 2025 goes out on Friday, July 11, 2025. Here’s what you can expect:
| Recipient Type | Estimated Payment |
|---|---|
| Single individual | $265.00 |
| Eligible family | $456.50 |
| Disability top-up (per adult) | $136.83 |
| Max couple (base + disability) | $730.17 |
Your payment could differ depending on your province. Residents of Quebec, Alberta, and Nunavut may see different numbers.
Use the CRA’s online calculator to check your personal estimate.
Schedule
Here are the 2025 advance payment dates:
| Payment Number | Payment Date |
|---|---|
| 1st Payment | July 11, 2025 |
| 2nd Payment | October 10, 2025 |
| 3rd Payment | January 12, 2026 |
The rest of your benefit will be paid or adjusted when you file your 2025 taxes.
Taxability
The Canada Workers Benefit is not taxable. Whether it reduces your taxes owed or pays you a refund, it’s all yours to keep. Advance payments are also non-taxable, so they won’t affect your return.
The Canada Workers Benefit remains one of Canada’s best tools to support working individuals and families with lower incomes.
With a notable boost in 2025, now is a great time to make sure you’re eligible and that your taxes are filed on time. This benefit could mean hundreds—or even thousands—back in your pocket.
FAQs
When is the first CWB payment in 2025?
The first advance payment is on July 11, 2025.
Do I need to apply separately for CWB?
No, it’s automatic when you file your tax return.
Is the CWB considered taxable income?
No, it is a non-taxable refundable tax credit.
Can I get CWB if I qualify for the DTC?
Yes, and you may also receive the disability supplement.
What’s the max CWB advance a couple can get?
Up to $730.17 if both qualify for base and disability.
