Starting July 2025, Canadians receiving federal support payments will notice increases in several key benefit programs. These updates reflect a 2.7% inflation adjustment announced by the Canada Revenue Agency (CRA) for the 2025–26 benefit year.
The goal? Help Canadians keep pace with rising living costs and maintain access to essential financial aid.
With the new benefit year starting in July and based on 2024 tax data, the updates affect everything from child benefits to workers’ support programs. And the big news? A brand-new federal benefit — the Canada Disability Benefit — will launch this month too.
GST
The GST/HST Credit is a tax-free quarterly payment that helps lower- and modest-income Canadians offset the cost of sales taxes on daily purchases. It’s automatically paid out based on income and family size.
Starting in July 2025, the credit increases with inflation. Here’s what you can now expect:
- $533 annually for single individuals
- $698 for married or common-law couples
- $184 per eligible child
The income threshold has also shifted. The benefit now starts to phase out at a family net income of $45,521, giving more families access to the full amount. The first payment of the updated credit will land on Friday, July 4, 2025.
Workers
The Canada Workers Benefit (CWB) helps boost income for working Canadians with low wages. It’s split between tax refunds and advance payments issued in July, October, and January.
This year, the CWB rises 4.7% due to a larger inflation factor from the 2023 tax year. Updated maximums are:
| Category | Max Annual Amount | Phase-Out Begins | Cut-Off Point |
|---|---|---|---|
| Single (no children) | $1,590 | $26,149 | $36,749 |
| Families | $2,739 | $29,833 | $48,093 |
| Disability Supplement | $821 | Based on above | Based on above |
These increases mean more working Canadians will qualify, and some who were just above the limit might now be eligible. The first advance CWB payment hits bank accounts on Friday, July 11, 2025.
Children
The Canada Child Benefit (CCB) is a monthly, tax-free payment for parents raising kids under 18. It’s recalculated each July based on income and child age.
For the 2025–26 benefit year, here are the new maximums:
- Up to $7,997 per year for each child under 6
- Up to $6,748 per year for each child aged 6 to 17
That’s roughly $666.41/month for younger kids and $562.33/month for older ones — an increase of $210 and $178 over last year. The benefit starts reducing once household income exceeds $37,487. New payments begin Friday, July 18, 2025.
Disability
Families caring for a child with a disability will also see more help from the Child Disability Benefit (CDB). This monthly add-on to the CCB is for children approved for the Disability Tax Credit (DTC).
From July 2025, the maximum benefit will be:
- $3,411 annually
- $284.25 monthly
The benefit starts phasing out once the family’s net income goes over $81,222. It’s designed to support higher care costs, such as therapies, specialized equipment, and accessibility needs. It’ll be included in the July 18 CCB payment for those who qualify.
| Benefit Name | Monthly Max | Annual Max | Key Eligibility |
|---|---|---|---|
| Canada Child Benefit | $666.41 / $562.33 | $7,997 / $6,748 | Based on child’s age/income |
| Child Disability Benefit | $284.25 | $3,411 | Child must qualify for DTC |
Seniors
Old Age Security (OAS) payments for Canadians aged 65+ are reviewed quarterly and adjusted for inflation. From July to September 2025, payments will rise by 1%, on top of last year’s 2.3% annual hike.
Estimated monthly payments:
- $734.95 for seniors aged 65–74
- $808.44 for those 75 and older
This helps ensure that retirees maintain purchasing power and can cover essentials as costs increase. The updated payment is due Tuesday, July 29, 2025.
Disability Benefit
A major new support program, the Canada Disability Benefit (also abbreviated CDB), launches in July 2025. This new monthly benefit targets working-age adults with disabilities who have low incomes.
To qualify, you must:
- Be aged 18–64
- Hold a valid Disability Tax Credit (DTC)
- Be a Canadian resident
- File your 2024 income tax return
The maximum annual payment is $2,400, or $200 monthly, though actual amounts depend on income and family status. This benefit is expected to help thousands manage essentials like food, housing, and transportation.
While the first exact payment date hasn’t been finalized, the rollout begins this July. If you qualify but haven’t applied for the DTC yet, now’s the time — CRA processing can take weeks.
Summary
Canada’s July 2025 benefit updates are among the most significant in recent years. With higher payments, expanded eligibility, and a new disability support program, the federal government is reinforcing its commitment to income equality, affordability, and support for those who need it most.
FAQs
When will the new GST payment arrive?
The updated GST/HST credit arrives on July 4, 2025.
How much is the Canada Workers Benefit in 2025?
Up to $1,590 for singles or $2,739 for families.
Who qualifies for the new Canada Disability Benefit?
Adults 18–64 with a valid DTC and low income.
When is the CCB payment updated?
Updated CCB amounts begin July 18, 2025.
Will OAS payments increase in July 2025?
Yes, by 1%, with payments on July 29, 2025.
